Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 28, 2019 | Jul. 29, 2019 | Dec. 28, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | Seagate Technology plc | ||
Entity Central Index Key | 0001137789 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 28, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-28 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 269,037,767 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 10.9 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 28, 2019 | Jun. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,220 | $ 1,853 |
Accounts receivable, net | 989 | 1,184 |
Inventories | 970 | 1,053 |
Other current assets | 184 | 220 |
Total current assets | 4,363 | 4,310 |
Property, equipment and leasehold improvements, net | 1,869 | 1,792 |
Investment in debt security | 0 | 1,275 |
Goodwill | 1,237 | 1,237 |
Other intangible assets, net | 111 | 188 |
Deferred income taxes | 1,114 | 417 |
Other assets, net | 191 | 191 |
Total Assets | 8,885 | 9,410 |
Current liabilities: | ||
Accounts payable | 1,420 | 1,728 |
Accrued employee compensation | 169 | 253 |
Accrued warranty | 91 | 112 |
Current portion of long-term debt | 0 | 499 |
Accrued expenses | 552 | 598 |
Total current liabilities | 2,232 | 3,190 |
Long-term accrued warranty | 104 | 125 |
Long-term accrued income taxes | 4 | 10 |
Other non-current liabilities | 130 | 100 |
Long-term debt, less current portion | 4,253 | 4,320 |
Total Liabilities | 6,723 | 7,745 |
Seagate Technology plc shareholders' equity: | ||
Preferred shares, $0.00001 par value per share—100,000,000 authorized; no shares issued or outstanding | 0 | 0 |
Ordinary shares, $0.00001 par value per share—1,250,000,000 authorized; 269,097,971 issued and outstanding at June 28, 2019 and 287,170,363 issued and outstanding at June 29, 2018 | 0 | 0 |
Additional paid-in capital | 6,545 | 6,377 |
Accumulated other comprehensive loss | (34) | (16) |
Accumulated deficit | (4,349) | (4,696) |
Total Shareholders' Equity | 2,162 | 1,665 |
Total Liabilities and Shareholders' Equity | $ 8,885 | $ 9,410 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 28, 2019 | Jun. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred shares, shares authorized | 100,000,000 | 100,000,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Ordinary shares par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Ordinary shares, shares authorized | 1,250,000,000 | 1,250,000,000 |
Ordinary shares, shares issued | 269,097,971 | 287,170,363 |
Ordinary shares, shares outstanding | 269,097,971 | 287,170,363 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 10,390 | $ 11,184 | $ 10,771 |
Cost of revenue | 7,458 | 7,820 | 7,597 |
Product development | 991 | 1,026 | 1,232 |
Marketing and administrative | 453 | 562 | 606 |
Amortization of intangibles | 23 | 53 | 104 |
Restructuring and other, net | (22) | 89 | 178 |
Total operating expenses | 8,903 | 9,550 | 9,717 |
Income from operations | 1,487 | 1,634 | 1,054 |
Interest income | 84 | 38 | 12 |
Interest expense | (224) | (236) | (222) |
Other, net | 25 | (18) | (29) |
Other expense, net | (115) | (216) | (239) |
Income before income taxes | 1,372 | 1,418 | 815 |
(Benefit) provision for income taxes | (640) | 236 | 43 |
Net income | $ 2,012 | $ 1,182 | $ 772 |
Net income per share: | |||
Basic (in dollars per share) | $ 7.13 | $ 4.10 | $ 2.61 |
Diluted (in dollars per share) | $ 7.06 | $ 4.05 | $ 2.58 |
Number of shares used in per share calculations: | |||
Basic (in shares) | 282 | 288 | 296 |
Diluted (in shares) | 285 | 292 | 299 |
Cash dividends declared per ordinary share | $ 2.52 | $ 2.52 | $ 2.52 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,012 | $ 1,182 | $ 772 |
Cash flow hedges | |||
Change in net unrealized (loss) gain on cash flow hedges | 0 | 0 | (3) |
Less: reclassification for amounts included in net income | 0 | 0 | 4 |
Net change | 0 | 0 | 1 |
Marketable securities | |||
Change in net unrealized gain (loss) on available-for-sale debt securities | 0 | 0 | 0 |
Less: reclassification for amounts included in net income | 0 | 0 | 0 |
Net change | 0 | 0 | 0 |
Post-retirement plans | |||
Change in unrealized gain (loss) on post-retirement plans | (16) | 1 | 0 |
Less: reclassification for amounts included in net income | 0 | 0 | 2 |
Net change | (16) | 1 | 2 |
Foreign currency translation adjustments | |||
Foreign currency translation adjustments | (2) | 0 | 5 |
Total other comprehensive income (loss), net of tax | (18) | 1 | 8 |
Comprehensive income | $ 1,994 | $ 1,183 | $ 780 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | |||
Net income | $ 2,012 | $ 1,182 | $ 772 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 541 | 598 | 749 |
Share-based compensation | 99 | 112 | 137 |
Impairment of assets | 3 | 0 | 42 |
Deferred income taxes | (690) | 193 | 3 |
Other non-cash operating activities, net | (97) | (11) | 27 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | 204 | 16 | 122 |
Inventories | 80 | (71) | (114) |
Accounts payable | (268) | 65 | 121 |
Accrued employee compensation | (84) | 16 | 53 |
Accrued expenses, income taxes and warranty | (81) | (46) | 47 |
Other assets and liabilities | 42 | 59 | (43) |
Net cash provided by operating activities | 1,761 | 2,113 | 1,916 |
INVESTING ACTIVITIES | |||
Acquisition of property, equipment and leasehold improvements | (602) | (366) | (434) |
Proceeds from the sale of assets | 144 | 71 | 0 |
Proceeds from settlement of foreign currency forward exchange contracts | 29 | 0 | 0 |
Purchase of debt security | 0 | (1,279) | 0 |
Proceeds from redemption of debt security | 1,283 | 0 | 0 |
Purchases of strategic investments | (18) | 0 | (37) |
Proceeds from sale of strategic investments | 10 | 0 | 0 |
Maturities of short-term investments | 0 | 0 | 6 |
Other investing activities, net | 0 | (14) | 6 |
Net cash provided by (used in) investing activities | 846 | (1,588) | (459) |
FINANCING ACTIVITIES | |||
Redemption and repurchase of debt | (819) | (214) | (316) |
Dividends to shareholders | (713) | (726) | (561) |
Repurchases of ordinary shares | (963) | (361) | (460) |
Taxes paid related to net share settlement of equity awards | (31) | (23) | (27) |
Net proceeds from issuance of long-term debt | 245 | 0 | 1,232 |
Proceeds from issuance of ordinary shares under employee stock plans | 69 | 113 | 86 |
Net cash used in financing activities | (2,212) | (1,211) | (46) |
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | (1) | 0 | 0 |
Increase (decrease) in cash, cash equivalents and restricted cash | 394 | (686) | 1,411 |
Cash, cash equivalents and restricted cash at the beginning of the year | 1,857 | 2,543 | 1,132 |
Cash, cash equivalents and restricted cash at the end of the year | 2,251 | 1,857 | 2,543 |
Supplemental Disclosure of Cash Flow Information | |||
Cash paid for interest | 223 | 237 | 172 |
Cash paid for income taxes, net of refunds | $ 39 | $ 43 | $ 33 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Starting Balance (in shares) at Jul. 01, 2016 | 299 | ||||
Total Seagate Technology plc Shareholders' Equity, Starting Balance at Jul. 01, 2016 | $ 1,593 | $ 0 | $ 5,929 | $ (25) | $ (4,311) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 772 | 772 | |||
Other comprehensive loss | 8 | 8 | |||
Issuance of ordinary shares under employee stock plans | 86 | 86 | |||
Issuance of ordinary shares under employee stock plans (in shares) | 6 | ||||
Repurchases of shares | (460) | (460) | |||
Repurchases of shares (in shares) | (12) | ||||
Tax withholding related to vesting of restricted stock units | $ (27) | 27 | |||
Tax withholding related to vesting of restricted stock units (in shares) | (1) | 1 | |||
Dividends to shareholders | $ (745) | (745) | |||
Share-based compensation | 137 | 137 | |||
Ending Balance (in shares) at Jun. 30, 2017 | 292 | ||||
Total Seagate Technology plc Shareholders' Equity, Ending Balance at Jun. 30, 2017 | 1,364 | $ 0 | 6,152 | (17) | (4,771) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 1,182 | 1,182 | |||
Other comprehensive loss | 1 | 1 | |||
Issuance of ordinary shares under employee stock plans | 113 | 113 | |||
Issuance of ordinary shares under employee stock plans (in shares) | 6 | ||||
Repurchases of shares | (361) | (361) | |||
Repurchases of shares (in shares) | (10) | ||||
Tax withholding related to vesting of restricted stock units | $ (23) | (23) | |||
Tax withholding related to vesting of restricted stock units (in shares) | (1) | (1) | |||
Dividends to shareholders | $ (723) | (723) | |||
Share-based compensation | 112 | 112 | |||
Ending Balance (in shares) at Jun. 29, 2018 | 287 | ||||
Total Seagate Technology plc Shareholders' Equity, Ending Balance at Jun. 29, 2018 | 1,665 | $ 0 | 6,377 | (16) | (4,696) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 2,012 | 2,012 | |||
Other comprehensive loss | (18) | (18) | |||
Issuance of ordinary shares under employee stock plans | 69 | 69 | |||
Issuance of ordinary shares under employee stock plans (in shares) | 4 | ||||
Repurchases of shares | (966) | (966) | |||
Repurchases of shares (in shares) | (21) | ||||
Tax withholding related to vesting of restricted stock units | $ (31) | (31) | |||
Tax withholding related to vesting of restricted stock units (in shares) | (1) | (1) | |||
Dividends to shareholders | $ (702) | (702) | |||
Share-based compensation | 99 | 99 | |||
Cumulative effect of adoption of new revenue standard (Note 1) | (34) | 34 | |||
Ending Balance (in shares) at Jun. 28, 2019 | 269 | ||||
Total Seagate Technology plc Shareholders' Equity, Ending Balance at Jun. 28, 2019 | $ 2,162 | $ 0 | $ 6,545 | $ (34) | $ (4,349) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Organization Seagate Technology plc (the “Company”) is a leading provider of data storage technology and solutions. Its principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, the Company produces a broad range of data storage products including solid state drives (“SSDs”), solid state hybrid drives ("SSHDs") and storage subsystems. Basis of Presentation and Consolidation The consolidated financial statements include the accounts of the Company and all its wholly-owned and majority-owned subsidiaries, after elimination of intercompany transactions and balances. The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its consolidated financial statements. Fiscal Year The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Accordingly, fiscal years 2019 , 2018 and 2017 were comprised of 52 weeks ended on June 28, 2019 , June 29, 2018 and June 30, 2017 , respectively. All references to years in these Notes to Consolidated Financial Statements represent fiscal years unless otherwise noted. Fiscal year 2020 will be comprised of 53 weeks and will end on July 3, 2020 . Fiscal year 2026 will also be comprised of 53 weeks and will end on July 3, 2026. Summary of Significant Accounting Policies Cash and Cash Equivalents. The Company considers all highly liquid investments with a remaining maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. Restricted Cash and Cash Equivalents. Restricted cash and cash equivalents represent cash and cash equivalents that are restricted as to withdrawal or use for other than current operations. Short-Term Investments. The Company has short-term investments that are primarily comprised of money market funds, time deposits and certificates of deposits. The Company has classified its marketable securities as available-for-sale and they are stated at fair value with unrealized gains and losses included in Accumulated other comprehensive loss , which is a component of Shareholders' Equity. The Company evaluates the available-for sale securities in an unrealized loss position for other-than-temporary impairment. Realized gains and losses are included in Other, net on the Company's Consolidated Statements of Operations. The cost of securities sold is based on the specific identification method. Allowances for Doubtful Accounts. The Company maintains allowances for uncollectible accounts receivable based upon expected collectability. This reserve is established based upon historical trends, global macroeconomic conditions and an analysis of specific exposures. The provision for doubtful accounts is recorded as a charge to Marketing and administrative expense on the Company's Consolidated Statements of Operations. Inventories. Inventories are valued at the lower of cost (using the first-in, first-out method) and net realizable value. Net realizable value is based upon the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Adjustments to reduce cost of inventories to its net realizable value are made, if required, for estimated excess or obsolescence determined primarily by future demand forecasts. Property, Equipment and Leasehold Improvements. Property, equipment and leasehold improvements are stated at cost. Equipment and buildings are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated life of the asset or the remaining term of the lease. The costs of additions and substantial improvements to property, equipment and leasehold improvements, which extend the economic life of the underlying assets, are capitalized. The cost of maintenance and repairs to property, equipment and leasehold improvements is expensed as incurred. Goodwill. The Company performs a qualitative assessment in the fourth quarter of each year, or more frequently if indicators of potential impairment exist, to determine if any events or circumstances exist, such as an adverse change in business climate or a decline in the overall industry that would indicate that it would more likely than not reduce the fair value of a reporting unit below its carrying amount, including goodwill. If it is determined in the qualitative assessment that the fair value of a reporting unit is more likely than not below its carrying amount, including goodwill, then the Company will perform a quantitative impairment test. The quantitative goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. Any excess in the carrying value of a reporting unit's goodwill over its fair value is recognized as an impairment loss, limited to the total amount of goodwill allocated to that reporting unit. Other Long-lived Assets. The Company tests other long-lived assets, including property, equipment and leasehold improvements and other intangible assets subject to amortization, for recoverability whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. The Company performs a recoverability test to assess the recoverability of an asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, the Company will estimate the fair value of the asset group and the excess of the carrying value over the fair value is allocated pro rata to derive the adjusted carrying value of assets in the asset group. The adjusted carrying value of each asset in the asset group is not reduced below its fair value. The Company tests other intangible assets not subject to amortization whenever events occur or circumstances change, such as declining financial performance, deterioration in the environment in which the entity operates or deteriorating macroeconomic conditions that have a negative effect on future expected earnings and cash flows that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset. Assets Held for Sale. The Company classifies its long-lived assets to be sold as held for sale in the period (i) it has approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon designation as an asset held for sale, the Company stops recording depreciation expense on the asset. The Company assesses the fair value of a long-lived asset less any costs to sell at each reporting period and until the asset is no longer classified as held for sale. Investment in Debt Security and Payment-in-Kind (“PIK”) Income. The Company had a debt investment in non-convertible preferred stock of Toshiba Memory Holdings Corporation ("TMHC", formerly known as "K.K. Pangea") that was fully redeemed by TMHC in June 2019. The Company classified the investment as held-to-maturity as it had the positive intent and ability to hold the security until maturity. This held-to-maturity investment was carried at amortized cost and recorded as Investment in debt security on the Consolidated Balance Sheets. Transaction costs incurred by the Company to acquire this investment were capitalized and amortized as a reduction of interest income on the Consolidated Statements of Operations over the respective term of the investment. The investment contained a PIK income provision, which represented contractual interest that was due upon redemption, and was accrued and recorded as Interest income each reporting period and added to the carrying value of the Investment in debt security. Derivative Financial Instruments. The Company records all derivatives on the balance sheet at fair value and establishes criteria for designation and effectiveness of hedging relationships. The Company continues to exclude the change in forward points from the assessment of hedge effectiveness and recognizes the excluded component in Other , net in the Consolidated Statements of Operations. Foreign currency forward exchange contracts not designated as hedge instruments are used to economically hedge the foreign currency exposure in the value of an investment denominated in currency other than U.S. dollar. The Company recognizes the unrealized gains and losses due to the changes in the fair value of these contracts in Other , net in the Consolidated Statements of Operations along with the foreign currency gains and losses on remeasurement of such investment. Warranty. The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally provides warranty on its products for a period of 1 to 5 years. The Company's warranty provision considers estimated product failure rates and trends (including the timing of product returns during the warranty periods), and estimated repair or replacement costs related to product quality issues, if any. The Company also exercises judgment in estimating its ability to sell refurbished products. The Company's judgment is subject to a greater degree of subjectivity with respect to newly introduced products because of limited experience with those products upon which to base our warranty estimates. Revenue Recognition, Sales Returns and Allowances, and Sales Incentive Programs. 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 in accordance with 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 Consolidated Statements of Operations. The Company records estimated variable consideration at the time of revenue recognition as a reduction to 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 retail 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. The Company elected a practical expedient to expense sales commissions as incurred because the amortization period would have been one year or less. These costs are recorded as Marketing and administrative on the Company's Consolidated Statements of Operations. Restructuring Costs. The timing of recognition for severance costs depends on whether employees are required to render service until they are terminated in order to receive the termination benefits. If employees are required to render service until they are terminated in order to receive the termination benefits, a liability is recognized ratably over the future service period. Otherwise, a liability is recognized when management has committed to a restructuring plan and has communicated those actions to employees. Employee termination benefit costs covered by existing benefit arrangements are recognized when management has committed to a restructuring plan and the severance costs are probable and estimable. Advertising Expense. The cost of advertising is expensed as incurred. Advertising costs were approximately $22 million , $28 million and $16 million in fiscal years 2019 , 2018 and 2017 , respectively. Share-Based Compensation. The Company has elected to apply the with-and-without method to assess the realization of related excess tax benefits. The Company also elected to continue to account for share-based compensation expense net of estimated forfeitures. Accounting for Income Taxes . The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, recognition of income and deductions and calculation of specific tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for income tax and financial statement purposes, as well as tax liabilities associated with uncertain tax positions. The calculation of tax liabilities involves uncertainties in the application of complex tax rules and the potential for future adjustment of the Company’s uncertain tax positions by the Internal Revenue Service or other tax jurisdictions. If estimates of these tax liabilities are greater or less than actual results, an additional tax provision or benefit will result. The deferred tax assets the Company records each period depend primarily on the Company’s ability to generate future taxable income in the United States and certain non-U.S. jurisdictions. Each period, the Company evaluates the need for a valuation allowance for its deferred tax assets and, if necessary, adjusts the valuation allowance so that net deferred tax assets are recorded only to the extent the Company concludes it is more likely than not that these deferred tax assets will be realized. If the Company’s outlook for future taxable income changes significantly, the Company’s assessment of the need for, and the amount of, a valuation allowance may also change. Financial Instruments Remeasurement. Effective June 30, 2018, the Company adopted ASU 2016-01, Financial Instruments, which changed the way the Company accounts for equity investments that do not qualify for the equity method of accounting . Prior to fiscal year 2019, the Company's investments in privately-held companies without readily determinable fair value were accounted for under the cost method and were recorded at historical cost at the time of investment, with adjustments to the balance only when impairment occur. Upon adoption of ASU 2016-01, the Company's equity investment in privately-held companies without readily determinable fair values are now measured using the measurement alternative method 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 Consolidated Statements of Operations. Comprehensive Income. The Company presents comprehensive income in a separate statement. Comprehensive income is comprised of net income and other gains and losses affecting equity that are excluded from net income. Foreign Currency Remeasurement and Translation. The U.S. dollar is the functional currency for the majority of the Company's foreign operations. Monetary assets and liabilities denominated in foreign currencies are remeasured into the functional currency of the subsidiary at the balance sheet date. The gains and losses from the remeasurement of foreign currency denominated balances into the functional currency of the subsidiary are included in Other, net on the Company's Consolidated Statements of Operations. The Company’s subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and nonmonetary assets and liabilities at historical rates. The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in Accumulated other comprehensive loss, which is a component of Shareholders’ Equity. Concentrations Concentration of Credit Risk. The Company's customer base for disk drive products is concentrated with a small number of customers. The Company does not generally require collateral or other security to support accounts receivable. To reduce credit risk, the Company performs ongoing credit evaluations on its customers' financial condition. The Company establishes allowances for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. Dell Inc. accounted for more than 10% of the Company's accounts receivable as of June 28, 2019 and June 29, 2018. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, investments and foreign currency forward exchange contracts. The Company mitigates concentrations of credit risk in its investments through diversifications, by investing in highly-rated securities and/or major multinational companies. In entering into foreign currency forward exchange contracts, the Company assumes the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. The counterparties to these contracts are major multinational commercial and investment banks, and the Company has not incurred and does not expect any losses as a result of counterparty defaults. Supplier Concentration. Certain of the raw materials, components and equipment used by the Company in the manufacture of its products are available from single-sourced vendors. Shortages could occur in these essential materials and components due to an interruption of supply or increased demand in the industry. If the Company were unable to procure certain materials, components or equipment at acceptable prices, it would be required to reduce its manufacturing operations, which could have a material adverse effect on its results of operations. In addition, the Company may make prepayments to certain suppliers or enter into minimum volume commitment agreements. Should these suppliers be unable to deliver on their obligations or experience financial difficulty, the Company may not be able to recover these prepayments. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-02 (ASC Topic 842), Leases and subsequently issued certain interpretive clarifications on this new guidance which amends a number of aspects of lease accounting, including requiring lessee to recognize a right-of-use ("ROU") asset and corresponding lease liability for operating leases and enhanced disclosures. The lease liability is measured at the present value of the remaining lease payments and the ROU asset will be based on the lease liability and is adjusted for lease prepayments, lease incentives received and the lessee's initial direct costs. The Company will adopt this ASU effective June 29, 2019 using the modified retrospective method. The Company will elect the practical expedients which allows for not reassessing whether existing contracts contain leases, the classifications of existing leases and whether the existing initial direct costs meet the new definition. In addition, the Company will elect to combine lease and non-lease components for facility leases and to keep leases with an initial term of 12 months or less off the balance sheet. While the Company will continue to evaluate the effect of adopting this guidance on its consolidated financial statements and related disclosures, the Company expects to recognize ROU assets and corresponding lease liabilities of approximately $114 million and $74 million, respectively, on the Consolidated Balance Sheet, primarily relating to real estate operating leases. The Company does not expect the adoption of this ASU to have a material impact on its other consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 (ASC Topic 326), Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments . This ASU amends the requirement on the measurement and recognition of expected credit losses for financial assets held. The Company is required to adopt this guidance in the first quarter of fiscal year 2021. Early adoption in the first quarter of fiscal year 2020 is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 (ASC Topic 220), Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This ASU was issued following the enactment of the U.S. Tax Cuts and Jobs Act of 2017 ("the Tax Act”) and permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The Company is required to adopt the guidance in the first quarter of fiscal 2020. The adoption of ASU 2018-02 is not expected to have a material effect on its 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 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 quarter ended September 28, 2018 under the modified retrospective approach with a cumulative adjustment to accumulated deficit at the date of adoption. 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 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 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 Inventories $ 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 consolidated financial statements for the year ended June 28, 2019 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 quarter ended September 28, 2018. For equity investments without readily determinable fair value, the Company elected the measurement method as cost, less impairments, and adjusted up or down based on observable price changes in orderly transactions for an identical or similar investment in the same issuer. The adoption of this guidance had no impact on the Company's 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 quarter ended September 28, 2018. The adoption of this guidance had no impact on the Company's 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 quarter ended September 28, 2018. The adoption of this guidance had no impact on its consolidated financial statements and disclosures. |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Jun. 28, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
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 June 28, 2019 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale debt securities: Money market funds $ 417 $ — $ 417 Time deposits and certificates of deposit 133 — 133 Other debt securities 7 — 7 Total $ 557 $ — $ 557 Included in Cash and cash equivalents $ 548 Included in Other current assets 2 Included in Other assets, net 7 Total $ 557 As of June 28, 2019 , the Company's Other current assets included $2 million in restricted cash equivalents held as collateral at banks for various performance obligations. As of June 28, 2019 , 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 June 28, 2019 . The fair value and amortized cost of the Company's investments classified as available-for-sale at June 28, 2019 by remaining contractual maturity were as follows: (Dollars in millions) Amortized Cost Fair Value Due in less than 1 year $ 550 $ 550 Due in 1 to 5 years 3 3 Due in 6 to 10 years — — Thereafter 4 4 Total $ 557 $ 557 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 deposits 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 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 Consolidated Balance Sheets that reconciles to the corresponding amount in the Consolidated Statements of Cash Flows: (Dollars in millions) June 28, June 29, June 30, July 1, Cash and cash equivalents $ 2,220 $ 1,853 $ 2,539 $ 1,125 Restricted cash included in Other current assets 31 4 4 7 Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows $ 2,251 $ 1,857 $ 2,543 $ 1,132 As of June 28, 2019 , the Company's Other current assets included $31 million in restricted cash and cash equivalents in an escrow account for the sale of certain properties and cash equivalents held as collateral at banks for various performance obligations. Accounts Receivable, net The following table provides details of the accounts receivable, net balance sheet item: (Dollars in millions) June 28, June 29, Accounts receivable $ 993 $ 1,188 Allowances for doubtful accounts (4 ) (4 ) Account receivable, net $ 989 $ 1,184 Activity in the allowances for doubtful accounts is as follows: (Dollars in millions) Balance at Beginning of Period Charges (Credit) to Operations Deductions (a) Balance at End of Period Fiscal year ended June 30, 2017 $ 9 (4 ) — $ 5 Fiscal year ended June 29, 2018 $ 5 — (1 ) $ 4 Fiscal year ended June 28, 2019 $ 4 — — $ 4 ______________________________________________ (a) Uncollectible accounts written off, net of recoveries. Inventories The following table provides details of the inventory balance sheet item: (Dollars in millions) June 28, June 29, Raw materials and components $ 336 $ 329 Work-in-process 217 347 Finished goods 417 377 Total inventories $ 970 $ 1,053 Property, Equipment and Leasehold Improvements, net The components of property, equipment and leasehold improvements, net were as follows: (Dollars in millions) Useful Life in Years June 28, June 29, Land and land improvements $ 48 $ 55 Equipment 3 – 5 7,726 7,472 Buildings and leasehold improvements Up to 30 1,795 1,805 Construction in progress 266 193 9,835 9,525 Less: accumulated depreciation and amortization (7,966 ) (7,733 ) Property, equipment and leasehold improvements, net $ 1,869 $ 1,792 Depreciation expense, which includes amortization of leasehold improvements, was $464 million , $487 million and $581 million for fiscal years 2019 , 2018 and 2017 , respectively. Interest on borrowings related to eligible capital expenditures is capitalized as part of the cost of the qualified assets and amortized over the estimated useful lives of the assets. During fiscal years 2019 , 2018 and 2017 , the Company capitalized interest of $3 million , $1 million and $4 million , respectively. In fiscal year 2019, the Company did not have any material write-offs or accelerated depreciation of fixed assets. In fiscal year 2018, the Company recognized a charge of $7 million from the write-off and accelerated depreciation of certain fixed assets, of which $1 million , $4 million and $2 million was recorded to Cost of revenue, Product development and Marketing and administrative, respectively, in the Consolidated Statement of Operations. In fiscal year 2017, the Company determined it would discontinue the use of certain manufacturing property and equipment in the short-term, and that certain other buildings, land and manufacturing property and equipment were permanently impaired. As a result, the Company recognized charges of $72 million in fiscal year 2017 from the write-off and accelerated depreciation of these fixed assets, including $35 million impairment on land and buildings classified as held for sale under Other current assets in the Consolidated Balance Sheet. Please refer to Note 9. Fair Value for more details. Investment in Debt Security On May 31, 2018, the Company invested approximately $1.3 billion in non-convertible preferred stock of Toshiba Memory Corporation ("TMC", formerly known as "K.K. Pangea"), a subsidiary of Toshiba Memory Holdings Corporation (“TMHC”), with a consortium of investors led by Bain Capital Private Equity. The Company’s investment in TMC was subsequently transferred to TMHC. On June 17, 2019, the Company received approximately $1.3 billion in cash from TMHC for the redemption of all the outstanding shares of non-convertible preferred stock of TMHC held by the Company. The proceeds from the redemption include the original principal and accrued PIK income. As of June 29, 2018, no impairment was identified and the fair value of the investment was determined to approximate its carrying value at amortized cost. In fiscal years 2019 and 2018, the PIK income earned was $61 million and $5 million , respectively. Accrued Expenses The following table provides details of the accrued expenses balance sheet item: (Dollars in millions) June 28, June 29, Dividends payable $ 170 $ 181 Other accrued expenses 382 417 Total $ 552 $ 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 30, 2017 $ — $ — $ (5 ) $ (12 ) $ (17 ) Other comprehensive income (loss) before reclassifications — — 1 — 1 Amounts reclassified from AOCI — — — — — Other comprehensive income (loss) — — 1 — 1 Balance at June 29, 2018 — — (4 ) (12 ) (16 ) Other comprehensive income (loss) before reclassifications — — (16 ) (2 ) (18 ) Amounts reclassified from AOCI — — — — — Other comprehensive income (loss) — — (16 ) (2 ) (18 ) Balance at June 28, 2019 $ — $ — $ (20 ) $ (14 ) $ (34 ) |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill are as follows: (Dollars in millions) Amount As of June 30, 2017 $ 1,238 Goodwill acquired — Goodwill disposed (1 ) Foreign currency translation effect — As of June 29, 2018 $ 1,237 Goodwill acquired — Goodwill disposed — Foreign currency translation effect — As of June 28, 2019 $ 1,237 Other Intangible Assets Other intangible assets consist primarily of existing technology, customer relationships and trade names acquired in business combinations. Intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets. Amortization is charged to Operating expenses in the Consolidated Statements of Operations. In fiscal years 2019 , 2018 and 2017 , amortization expense for other intangible assets was $77 million , $111 million and $168 million , respectively. The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 28, 2019 , is set forth in the following table: (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Existing technology $ 201 $ (143 ) $ 58 1.9 years Customer relationships 71 (38 ) 33 3.3 years Trade name 3 (2 ) 1 1.2 years Other intangible assets 41 (22 ) 19 2.9 years Total amortizable other intangible assets $ 316 $ (205 ) $ 111 2.5 years The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 29, 2018 is set forth in the following table: (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Existing technology $ 256 $ (145 ) $ 111 2.5 years Customer relationships 89 (42 ) 47 4.0 years Trade name 17 (13 ) 4 1.3 years Other intangible assets 45 (19 ) 26 3.0 years Total amortizable other intangible assets $ 407 $ (219 ) $ 188 2.9 years As of June 28, 2019 , expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows: (Dollars in millions) Amount 2020 $ 54 2021 29 2022 20 2023 8 2024 — Thereafter — Total $ 111 |
Revenue
Revenue | 12 Months Ended |
Jun. 28, 2019 | |
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: Fiscal Years Ended (Dollars in million) June 28, June 29, June 30, Revenues by Channel OEMs $ 7,261 $ 7,863 $ 7,478 Distributors 1,780 1,906 1,866 Retailers 1,349 1,415 1,427 Total $ 10,390 $ 11,184 $ 10,771 Revenues by Geography (1) Americas $ 3,310 $ 3,719 $ 3,531 EMEA 1,965 1,983 2,119 Asia Pacific 5,115 5,482 5,121 Total $ 10,390 $ 11,184 $ 10,771 ____________________________________________________ (1) Revenue is attributed to countries based on bill from locations. |
Restructuring and Exit Costs
Restructuring and Exit Costs | 12 Months Ended |
Jun. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Exit Costs | Restructuring and Exit Costs During fiscal year 2019 , the Company recorded a net gain of $22 million comprised primarily of a gain from sales of a property. During fiscal years 2018 and 2017 the Company recorded restructuring charges of $89 million and $178 million , respectively, comprised primarily of charges related to workforce reduction costs and facilities and other exit costs associated with the restructuring of its workforce. The Company’s significant restructuring plans are described below. All restructuring charges are reported in Restructuring and other, net on the Consolidated Statements of Operations. December 2017 Plan - On December 8, 2017 , the Company committed to a restructuring plan (the “December 2017 Plan”) to reduce its cost structure. The December 2017 Plan included reducing the Company's global headcount by approximately 500 employees. The December 2017 Plan was substantially completed by the end of fiscal year 2018. July 2017 Plan - On July 25, 2017 , the Company committed to a restructuring plan (the “July 2017 Plan”) to reduce its cost structure. The July 2017 Plan included reducing the Company’s global headcount by approximately 600 employees. The July 2017 Plan was substantially completed during fiscal year 2018. March 2017 Plan - On March 9, 2017 , the Company committed to a restructuring plan (the “March 2017 Plan”) in connection with the continued consolidation of its global footprint. The Company closed its design center in Korea, resulting in the reduction of the Company’s headcount by approximately 300 employees. The March 2017 Plan was substantially completed by the end of fiscal year 2017. July 2016 Plan - On July 11, 2016 , the Company committed to a restructuring plan (the “July 2016 Plan”) for continued consolidation of its global footprint across Asia, EMEA and the Americas. The July 2016 Plan included reducing worldwide headcount by approximately 6,500 employees. The July 2016 Plan was substantially completed during fiscal year 2018. The following table summarizes the Company's restructuring activities under all of the Company’s active restructuring plans for fiscal years 2019 , 2018 and 2017 : December 2017 Plan July 2017 Plan March 2017 Plan July 2016 Plan Other Plans (Dollars in millions) Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Total Accrual balances at July 1, 2016 $ — $ — $ — $ — $ — $ — $ — $ — $ 50 $ 13 $ 63 Restructuring charges — — — — 28 3 72 20 31 13 167 Cash payments — — — — (29 ) (3 ) (57 ) (18 ) (74 ) (17 ) (198 ) Adjustments — — — — 1 — 7 — (1 ) 4 11 Accrual balances at June 30, 2017 — — — — — — 22 2 6 13 43 Restructuring charges 28 6 38 4 — — 1 15 13 — 105 Cash payments (21 ) (2 ) (37 ) (3 ) (1 ) — (23 ) (16 ) (9 ) (3 ) (115 ) Adjustments (2 ) — (1 ) — 2 — 2 (1 ) 1 8 9 Accrual balances at June 29, 2018 5 4 — 1 1 — 2 — 11 18 42 Restructuring charges — 3 — — — — — 6 41 4 54 Cash payments (5 ) (5 ) — — (1 ) — (1 ) (6 ) (41 ) (6 ) (65 ) Adjustments — (1 ) — (1 ) — — (1 ) — 2 — (1 ) Accrual balances at June 28, 2019 — 1 — — — — — — 13 16 30 Total costs incurred to date as of June 28, 2019 $ 26 $ 8 $ 37 $ 3 $ 31 $ 3 $ 81 $ 40 $ 283 $ 63 $ 575 Total expected costs to be incurred as of June 28, 2019 $ — $ — $ — $ — $ — $ — $ — $ — $ 1 $ — $ 1 Of the accrued restructuring balance of $30 million at June 28, 2019 , $16 million is included in Accrued expenses and $14 million is included in Other non-current liabilities in the Company's Consolidated Balance Sheet. Of the accrued restructuring balance of $42 million at June 29, 2018 , $26 million is included in Accrued expenses and $16 million is included in Other non-current liabilities in the Company's Consolidated Balance Sheet. During fiscal years 2019 and 2018, the Company sold certain properties, which were previously classified as assets held for sale and recognized a gain of approximately $78 million and $25 million , respectively. The Company also recorded an impairment charge of $3 million on its held for sale land and building during fiscal year 2019. The gain and impairment charge were included in Restructuring and other, net in the Company's Consolidated Statements of Operations. Please refer to Note 9. - Fair Value for more details. |
Debt
Debt | 12 Months Ended |
Jun. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Revolving Credit Facility On February 20, 2019, the Company terminated its senior unsecured revolving credit facility scheduled to expire on January 15, 2020, under which the Company was able to draw up to $700 million . Upon termination, the Company and its subsidiary Seagate HDD Cayman entered into a new credit agreement (the “2019 Revolving Credit Facility”) which provides the Company with a $1.3 billion senior unsecured revolving credit facility. The term of the 2019 Revolving Credit Facility is through February 20, 2024. The loans made under the 2019 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 other material subsidiaries of the Company fully and unconditionally guarantee the revolving credit facility. On May 28, 2019, the Company increased the 2019 Revolving Credit Facility from $1.3 billion to $1.5 billion primarily through the addition of two lenders under the facility. The 2019 Revolving Credit Facility also allows the Company to increase the facility by an additional $100 million , provided that (i) there has been, and will be after giving effect to such increase, no default, (ii) the increase is at least $25 million and (iii) the existing commitments under the facility receive 0.50% most favored nation protection. An aggregate amount of up to $75 million of the facility is available for the issuance of letters of credit, and an aggregate amount of up to $50 million of the facility is also available for swing line loans. The 2019 Revolving Credit Facility includes three financial covenants: (1) interest coverage ratio, (2) total leverage ratio and (3) a minimum liquidity amount. The Company was in compliance with the covenants as of June 28, 2019 and expects to be in compliance for the next 12 months. As of June 28, 2019, no borrowings were drawn and no letters of credit or swing line loans have been utilized under the 2019 Revolving Credit Facility. Long-Term Debt $800 million Aggregate Principal Amount of 3.75% Senior Notes due November 2018 (the “2018 Notes”). On November 5, 2013, Seagate HDD Cayman, issued $800 million in aggregate principal amount of 3.75% Senior Notes. The Notes were fully and unconditionally guaranteed by the Company on a senior unsecured basis. The interest on the Notes was payable semi-annually on May 15 and November 15 of each year. During fiscal years 2018 and 2017, the Company repurchased $211 million and $90 million , respectively, aggregate principal amount of the 2018 Notes for cash at a premium to their principal amount, plus accrued and unpaid interest. For fiscal years 2018 and 2017 the Company recorded a loss on the repurchase of approximately $4 million and $3 million , respectively, which is included in Other, net in the Company's Consolidated Statements of Operations. On November 15, 2018, the 2018 Notes matured and the Company repaid the entire outstanding principal amount of $499 million , plus accrued and unpaid interest. $600 million Aggregate Principal Amount of 7.00% Senior Notes due November 2021 (the “2021 Notes”) . On May 18, 2011, the Company’s subsidiary, Seagate HDD Cayman, completed the sale of $600 million aggregate principal amount of the 2021 Notes, in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended. The obligations under the 2021 Notes were fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. The interest on the 2021 Notes was payable semi-annually on January 1 and July 1 of each year. During fiscal year 2017, the 2021 Notes were fully extinguished through redemption for cash at a premium to their principal amount of $158 million , plus accrued and unpaid interest. For fiscal year 2017, the Company recorded a loss on the redemption of approximately $5 million , which was included in Other, net in the Company’s Consolidated Statement of Operations. $750 million Aggregate Principal Amount of 4.25% Senior Notes due March 2022 (the “2022 Notes”). On February 3, 2017, Seagate HDD Cayman issued, in a private placement, $750 million in aggregate principal amount of 4.25% Senior Notes which will mature on March 1, 2022. The interest on the 2022 Notes is payable semi-annually on March 1 and September 1 of each year, commencing on September 1, 2017. At any time before February 1, 2022, Seagate HDD Cayman may redeem some or all of the 2022 Notes at a "make whole" redemption price, plus accrued and unpaid interest, if any. The ‘‘make-whole’’ redemption price will be equal to (1) 100% of the principal amount of the 2022 Notes redeemed, plus (2) the excess, if any, of (a) the sum of the present values of the remaining scheduled payments of principal and interest on the 2022 Notes being redeemed, discounted to the redemption date on a semi-annual basis at a rate equal to the sum of the Treasury Rate plus 40 basis points, minus accrued and unpaid interest, if any, on the 2022 Notes being redeemed to, but excluding, the redemption date over (b) the principal amount of the 2022 Notes being redeemed, plus (3) accrued and unpaid interest, if any, on the 2022 Notes being redeemed to, but excluding, the redemption date. The issuer under the 2022 Notes is Seagate HDD Cayman, and the obligations under the 2022 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. $1 billion Aggregate Principal Amount of 4.75% Senior Notes due June 2023 (the “2023 Notes”). On May 22, 2013, Seagate HDD Cayman, issued $1 billion in aggregate principal amount of 4.75% Senior Notes, which will mature on June 1, 2023, in a private placement. The obligations under the 2023 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. The interest on the 2023 Notes is payable semi-annually on June 1 and December 1 of each year. T he 2023 Notes are redeemable at the option of the Company in whole or in part, on not less than 30, nor more than 60 days' notice, at a "make-whole" premium redemption price. The "make-whole" redemption price will be equal to the greater of (1) 100% of the principal amount of the notes being redeemed, or (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2023 Notes being redeemed, discounted at the redemption date on a semi-annual basis at a rate equal to the sum of the applicable Treasury Rate plus 50 basis points. Accrued and unpaid interest, if any, will be paid to, but excluding, the redemption date. During fiscal years 2019 and 2017, the Company repurchased $10 million and $39 million , respectively, aggregate principal amount of its 2023 Notes for cash at a premium to their principal amount, plus accrued and unpaid interest. The loss recorded on the repurchases in fiscal years 2019 and 2017 were immaterial , which is included in Other, net in the Company's Consolidated Statement of Operations. $500 million Aggregate Principal Amount of 4.875% Senior Notes due March 2024 (the “2024 Notes”). On February 3, 2017, Seagate HDD Cayman issued, in a private placement, $500 million in aggregate principal amount of 4.875% Senior Notes which will mature on March 1, 2024. The interest on the 2024 Notes is payable semi-annually on March 1 and September 1 of each year, commencing on September 1, 2017. At any time before January 1, 2024, Seagate HDD Cayman may redeem some or all of the 2024 Notes at a "make whole" redemption price, plus accrued and unpaid interest, if any. The ‘‘make-whole’’ redemption price will be equal to (1) 100% of the principal amount of the 2024 Notes redeemed, plus (2) the excess, if any, of (a) the sum of the present values of the remaining scheduled payments of principal and interest on the 2024 Notes being redeemed, discounted to the redemption date on a semi-annual basis at a rate equal to the sum of the Treasury Rate plus 45 basis points, minus accrued and unpaid interest, if any, on the 2024 Notes being redeemed to, but excluding, the redemption date over (b) the principal amount of the 2024 Notes being redeemed, plus (3) accrued and unpaid interest, if any, on the 2024 Notes being redeemed to, but excluding, the redemption date. The issuer under the 2024 Notes is Seagate HDD Cayman, and the obligations under the 2024 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. $1 billion Aggregate Principal amount of 4.75% Senior Notes due January 2025 (the “2025 Notes”) . On May 28, 2014, Seagate HDD Cayman issued, in a private placement, $1 billion in aggregate principal amount of 4.75% Senior Notes due 2025, which will mature on January 1, 2025. The interest on the Notes will be payable in cash semiannually on January 1 and July 1 of each year, commencing on January 1, 2015. At any time, upon not less than 30 nor more than 60 days’ notice, Seagate HDD may redeem some or all of the Notes at a ‘‘make-whole’’ redemption price. The ‘‘make-whole’’ redemption price will be equal to the greater of (1) 100% of the principal amount of the Notes redeemed, and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed, discounted to the redemption date on a semi-annual basis at a rate equal to the sum of the Treasury Rate plus 50 basis points. Accrued and unpaid interest, if any, will be paid to, but excluding, the redemption date. The Notes are fully and unconditionally guaranteed by the Company on a senior unsecured basis. During fiscal years 2019 and 2017, the Company repurchased $55 million and $20 million , respectively, aggregate principal amount of the 2025 Notes for cash at a discount to their principal amount, plus accrued and unpaid interest. For fiscal years 2019 and 2017 the Company recorded a gain on the repurchase of approximately $1 million and $1 million , respectively, which is included in Other, net in the Company's Consolidated Statements of Operations. $700 million Aggregate Principal Amount of 4.875% Senior Notes due June, 2027 (the “2027 Notes”) . On May 14, 2015, Seagate HDD Cayman issued, in a private placement , $700 million in aggregate principal amount of 4.875% Senior Notes, which mature on June 1, 2027. The interest on the Notes is payable semi-annually on June 1 and December 1 of each year, commencing on December 1, 2015. At any time before March 1, 2027, Seagate HDD Cayman may redeem some or all of the Notes at a “make-whole” redemption price. The ‘‘make-whole’’ redemption price will be equal to (1) 100% of the principal amount of the Notes redeemed, plus (2) the excess, if any of (x) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed, discounted to the redemption date on a semi-annual basis at a rate equal to the sum of the Treasury Rate plus 40 basis points, minus accrued and unpaid interest, if any, on the Notes being redeemed to, but excluding, the redemption date over (y) the principal amount of the Notes being redeemed, plus (3) accrued and unpaid interest, if any, on the Notes being redeemed to, but excluding, the redemption date. At any time on or after March 1, 2027, the Company may redeem some or all of the Notes at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The issuer under the 2027 Notes is Seagate HDD Cayman, and the obligations under the 2027 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. During fiscal year 2017, the Company repurchased $4 million aggregate principal amount of the 2027 Notes for cash at a discount to their principal amount, plus accrued and unpaid interest. The Company recorded an immaterial gain on the repurchase, which is included in Other, net in the Company's Consolidated Statements of Operations. During fiscal year 2019, the Company repurchased $6 million aggregate principal amount of the 2027 Notes for cash at a discount to their principal amount, plus accrued and unpaid interest. The Company recorded an immaterial gain on the repurchase, which is included in Other, net in the Company's Consolidated Statements of Operations. $500 million Aggregate Principal Amount of 5.75% Senior Notes due December, 2034 (the “2034 Notes”) . On December 2, 2014, Seagate HDD Cayman issued, in a private placement, $500 million in aggregate principal amount of 5.75% Senior Notes, which will mature on December 1, 2034. The interest on the Notes is payable semi-annually on June 1 and December 1 of each year, commencing on June 1, 2015. At any time before June 1, 2034, Seagate HDD Cayman may redeem some or all of the Notes at a “make-whole” redemption price. The ‘‘make-whole’’ redemption price will be equal to (1) 100% of the principal amount of the Notes redeemed, plus (2) the excess, if any of (x) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed, discounted to the redemption date on a semi-annual basis at a rate equal to the sum of the Treasury Rate plus 50 basis points, minus accrued and unpaid interest, if any, on the Notes being redeemed to, but excluding, the redemption date over (y) the principal amount of the Notes being redeemed, plus (3) accrued and unpaid interest, if any, on the Notes being redeemed to, but excluding, the redemption date. At any time on or after June 1, 2034, the Company may redeem some or all of the Notes at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The issuer under the 2034 Notes is Seagate HDD Cayman, and the obligations under the 2034 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. During fiscal year 2016, the Company repurchased $10 million aggregate principal amount of its 2034 Notes for cash at a discount to their principal amount, plus accrued and unpaid interest. The Company recorded a gain on the repurchase of approximately $3 million , which was included in Other, net in the Company's Consolidated Statement of Operations. At June 28, 2019 , future Principal payments on long-term debt were as follows (in millions): Fiscal Year Amount 2020 $ — 2021 — 2022 750 2023 941 2024 500 Thereafter 2,100 Total $ 4,291 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes consisted of the following: Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, U.S. $ 275 $ (29 ) $ (22 ) Non-U.S. 1,097 1,447 837 $ 1,372 $ 1,418 $ 815 The (benefit) provision for income taxes consisted of the following: Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, Current income tax expense: U.S. Federal $ — $ — $ — U.S. State — 5 1 Non-U.S. 45 38 39 Total Current 45 43 40 Deferred income tax (benefit) expense: U.S. Federal (690 ) 201 (5 ) U.S. State 12 — — Non-U.S. (7 ) (8 ) 8 Total Deferred (685 ) 193 3 (Benefit) provision for income taxes $ (640 ) $ 236 $ 43 On December 22, 2017, the Tax Act was enacted into law in the United States. The Tax Act significantly revised 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 materially impact the Company’s current tax expense in the short-term due to the Company's large net operating loss and tax credit carryovers. 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 the effects of the Tax Act in its financial statements and has concluded the impact is not material. As of the fiscal quarter ended September 28, 2018, pursuant to SEC Staff Accounting Bulletin (“SAB”) 118 (regarding the application of ASC 740 associated with the enactment of the Tax Act), the Company had considered SAB 118 and concluded its accounting under ASC 740 for the provisions of the Tax Act was complete. There were no adjustments deemed necessary in fiscal year 2019. The significant components of the Company’s deferred tax assets and liabilities were as follows (in millions): Fiscal Years Ended (Dollars in millions) June 28, 2019 June 29, 2018 Deferred tax assets Accrued warranty $ 46 $ 55 Inventory carrying value adjustments 34 30 Receivable allowances 10 13 Accrued compensation and benefits 53 64 Depreciation 89 96 Restructuring accruals 4 5 Other accruals and deferred items 15 34 Net operating losses 743 812 Tax credit carryforwards 582 549 Other assets 7 10 Gross: Deferred tax assets 1,583 1,668 Less: Valuation allowance (460 ) (1,221 ) Net: Deferred tax assets 1,123 447 Deferred tax liabilities Unremitted earnings of certain non-U.S. entities (16 ) (7 ) Acquisition-related items (13 ) (30 ) Net: Deferred tax liabilities (29 ) (37 ) Total net deferred tax assets $ 1,094 $ 410 At June 28, 2019 , the Company recorded $1.1 billion of net deferred tax assets. The realization of most of these deferred tax assets is primarily dependent on the Company's ability to generate sufficient U.S. and certain non-U.S. taxable income in future periods. Although realization is not assured, the Company's management believes it is more likely than not that these deferred tax assets will be realized. The amount of deferred tax assets considered realizable, however, may increase or decrease in subsequent periods when the Company re-evaluates the underlying basis for its estimates of future U.S. and certain non-U.S. taxable income. The deferred tax asset valuation allowance decreased by $ 761 million in fiscal year 2019. The decrease in valuation allowance during fiscal year 2019 was primarily related to a valuation allowance release driven by improvements in the Company’s profitability outlook in the U.S., including its efforts to structurally and operationally align its EDS business with the rest of the Company. The Company continues to maintain a valuation allowance related to specific net deferred tax assets where it is not more likely than not that the deferred tax assets will be realized. This includes certain U.S. federal, U.S. state and non-U.S. tax attributes that have limited lives, or, indefinite lived deferred tax assets that the Company does not expect to utilize in the foreseeable future. At June 28, 2019 , the Company had U.S. federal, U.S. state and non-U.S. tax net operating loss carryforwards of approximately $ 3.1 billion , $1.8 billion and $43.5 million , respectively, which will expire at various dates beginning in fiscal year 2020, if not utilized. Net operating loss carryforwards of approximately $ 42 million are scheduled to expire in fiscal year 2020. At June 28, 2019 , the Company had U.S. federal and state tax credit carryforwards of $533 million and $143 million , respectively, which will expire at various dates beginning in fiscal year 2020 if not utilized. As of June 28, 2019 , approximately $373 million and $98 million of the Company's total U.S. net operating loss and tax credit carryforwards, respectively, are subject to annual limitations ranging from $1 million to $45 million pursuant to U.S. tax law. For purposes of the reconciliation between the (benefit) provision for income taxes at the statutory rate and the effective tax rate, the Irish statutory rate of 25% was applied as follows: Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, Provision at statutory rate $ 343 $ 355 $ 204 Permanent differences 3 (2 ) 19 Effect of U.S. corporate tax rate change — 524 — Valuation allowance (742 ) (297 ) 2 Non-U.S. losses with no tax benefits — — 17 Earnings taxed at other than statutory rate (234 ) (317 ) (185 ) Research credit (38 ) (25 ) (14 ) Tax expense (benefit) related to intercompany transactions 23 — (2 ) Other individually immaterial items 5 (2 ) 2 (Benefit) provision for income taxes $ (640 ) $ 236 $ 43 A substantial portion of the Company's operations in Malaysia, Singapore and Thailand operate under various tax incentive programs, which expire in whole or in part at various dates through 2025. Certain tax incentives may be extended if specific conditions are met. The net impact of these tax incentive programs was to increase the Company's net income by approximately $194 million in fiscal year 2019 ( $0.68 per share, diluted), to increase the Company's net income by approximately $269 million in fiscal year 2018 ( $0.92 per share, diluted) and to increase the Company's net income by approximately $163 million in fiscal year 2017 ( $0.54 per share, diluted). The Company consists of an Irish tax resident parent holding company with various U.S. and non-U.S. subsidiaries that operate in multiple non-Irish taxing jurisdictions. The amount of temporary differences (including undistributed earnings) related to outside basis differences in the stock of non-Irish resident subsidiaries considered indefinitely reinvested outside of Ireland for which Irish income taxes have not been provided as of June 28, 2019 , was approximately $2.3 billion . If such amounts were remitted to Ireland as a dividend, it is likely that tax at 25% , or approximately $575 million would result. As of June 28, 2019 and June 29, 2018 , the Company had approximately $83 million and $60 million , respectively, of unrecognized tax benefits excluding interest and penalties. These amounts, if recognized, would impact the effective tax rate subject to certain future valuation allowance offsets. The following table summarizes the activity related to the Company's gross unrecognized tax benefits: Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, Balance of unrecognized tax benefits at the beginning of the year $ 60 $ 74 $ 76 Gross increase for tax positions of prior years 22 2 2 Gross decrease for tax positions of prior years (9 ) (3 ) (7 ) Gross increase for tax positions of current year 16 7 16 Gross decrease for tax positions of current year — — — Settlements — — — Lapse of statutes of limitation (6 ) (20 ) (13 ) Non-U.S. exchange gain — — — Balance of unrecognized tax benefits at the end of the year $ 83 $ 60 $ 74 It is the Company's policy to include interest and penalties related to unrecognized tax benefits in the provision for income taxes on the Consolidated Statements of Operations. During fiscal years 2019 and 2018, the Company recognized net income tax benefit for interest and penalties of $2 million , as compared to net tax benefit of $1 million during fiscal year 2017 . As of June 28, 2019 , the Company had $1 million of accrued interest and penalties related to unrecognized tax benefits compared to $2 million in fiscal year 2018 . During the 12 months beginning June 29, 2019 , the Company expects that its unrecognized tax benefits could be reduced by less than $1 million as a result of the expiration of certain statutes of limitation. The Company is required to file U.S. federal, U.S. state and non-U.S. income tax returns. The Company is no longer subject to examination of its U.S. federal income tax returns for years prior to fiscal year 2016. With respect to U.S. state and non-U.S. income tax returns, the Company is generally no longer subject to tax examination for years ending prior to fiscal year 2008. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Jun. 28, 2019 | |
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 the Consolidated Balance Sheets at fair value. The changes in the fair value of highly effective designated cash flow hedges are recorded in Accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments or are not assessed to be highly effective are adjusted to fair value through earnings. The amount of net unrealized gain and loss on cash flow hedges was not material as of June 28, 2019 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 affects earnings or it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in Accumulated other comprehensive loss are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings. The Company did not recognize any material amounts related to the loss of hedge designation on discontinued cash flow hedges during fiscal year s 2019 , 2018 and 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 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 its Consolidated Balance Sheet. The following table shows the total notional value of the Company's outstanding foreign currency forward exchange contracts as of June 28, 2019 . All these foreign currency forward contracts mature within 12 months. As of June 28, 2019 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Singapore Dollar $ 60 $ 40 Chinese Renminbi 79 20 British Pound Sterling 6 12 $ 145 $ 72 The following table shows the total notional value of the Company's outstanding foreign currency forward exchange contracts as of June 29, 2018. As of June 29, 2018 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Japanese Yen (a) $ 66 $ 1,310 _____________________________________________________ (a) Pertains to our investment in TMHC. 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 Plans—the Seagate Deferred Compensation Plans (the “SDCPs”). The Company entered into a Total Return Swap (“TRS”) in order to manage the equity market risks associated with the SDCPs 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 SDCPs liabilities due to changes in the value of the investment options made by employees. As of June 28, 2019 , the notional investments underlying the TRS amounted to $117 million . The contract term of the TRS is through January 2020 and is settled on a monthly basis, therefore limiting counterparty performance risk. The Company does 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 SDCPs liabilities. The following table shows the Company's derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheet as of June 28, 2019 : As of June 28, 2019 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 1 Accrued expenses (1 ) Total return swap Other current assets — Accrued expenses — Total derivatives $ 1 $ (1 ) The following table shows the Company's derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheet as of as of June 29, 2018 : As of June 29, 2018 Derivative Assets Derivative Liabilities (Dollars in millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Other current assets $ — Accrued expenses $ — Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets 10 Accrued expenses — Total return swap Other current assets — Accrued expenses — Total derivatives $ 10 $ — The amount of gain or loss recognized in the Consolidated Statement of Comprehensive Income on derivatives designated as cash flow hedges was not material for fiscal years 2019 and 2018. The amount of gain or loss recognized in income related to the ineffective portion of the hedging relationships and to the amount excluded from the assessment of hedge ineffectiveness was not material for the fiscal years 2019 and 2018. The following table shows the effect of the Company's derivative instruments on the Consolidated Statements of Comprehensive Income and Consolidated Statement of Operations for the fiscal year ended June 28, 2019 : Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivatives Amount of Gain/(Loss) Recognized in Income on Derivatives Foreign currency forward exchange contracts Other, net $ 20 Total return swap Operating expenses $ 3 The following tables show the effect of the Company's derivative instruments on the Consolidated Statement of Operations for the fiscal year ended June 29, 2018 : Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivatives Amount of Gain/(Loss) Recognized in Income on Derivatives Foreign currency forward exchange contracts Other, net $ 10 Total return swap Operating expenses $ 6 |
Fair Value
Fair Value | 12 Months Ended |
Jun. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Measurement of Fair Value Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Fair Value Hierarchy A fair value hierarchy is based on whether the market participant assumptions used in determining fair value are obtained from independent sources (observable inputs) or reflects the Company's own assumptions of market participant valuation (unobservable inputs). A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are: Level 1 - Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 - Quoted prices for identical assets and liabilities in markets that are inactive; quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; or Level 3 - Prices or valuations that require inputs that are both unobservable and significant to the fair value measurement. The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, the Company's or the counterparty's non-performance risk is considered in determining the fair values of liabilities and assets, respectively. Items Measured at Fair Value on a Recurring Basis The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis, excluding accrued interest components, as of June 28, 2019 : 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 $ 416 $ — $ — $ 416 Time deposits and certificates of deposit — 132 — 132 Total cash equivalents 416 132 — 548 Restricted cash and investments: Money market funds 1 — — 1 Time deposits and certificates of deposit — 1 — 1 Other debt securities — — 7 7 7 Derivative assets — 1 — 1 Total assets $ 417 $ 134 $ 7 $ 558 Liabilities: Derivative liabilities $ — $ 1 $ — $ 1 Total liabilities $ — $ 1 $ — $ 1 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 $ 416 $ 132 $ — $ 548 Other current assets 1 2 — 3 Other assets, net — — 7 7 Total assets $ 417 $ 134 $ 7 $ 558 Liabilities: Accrued expenses $ — $ 1 $ — $ 1 Total liabilities $ — $ 1 $ — $ 1 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 values of all of its cash equivalents and short-term investments. For the cash equivalents and short-term investments in the Company's portfolio, multiple pricing sources are generally available. The pricing service uses inputs from multiple industry standard data providers or other third party sources and various methodologies, such as weighting and models, to determine the appropriate price at the measurement date. The Company corroborates the prices obtained from the pricing service against other independent sources and, as of June 28, 2019 , has not found it necessary to make any adjustments to the prices obtained. The Company's derivative financial instruments are also classified within Level 2. The Company's derivative financial instruments consist of foreign currency forward exchange contracts and the TRS. The Company recognizes derivative financial instruments in its consolidated financial statements at fair value. The Company determines the fair value of these instruments by considering the estimated amount it would pay or receive to terminate these agreements at the reporting date. Items Measured at Fair Value on a Non-Recurring Basis From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives. These strategic investments primarily include cost basis investments representing those where the Company does have the ability to exercise significant influence but does not have control. These investments are included in Other assets, net in the Company's Consolidated Balance Sheets and are periodically analyzed to determine whether or not there are indicators of impairment. As of June 28, 2019 and June 29, 2018 , the carrying value of the Company’s strategic investments were $114 million and $118 million , respectively. During fiscal years 2018 and 2017 , the Company determined that certain of its equity investments accounted for under the cost method were other-than-temporarily impaired, and recognized charges of $11 million and $25 million , respectively, in order to write down the carrying amount of the investments to its estimated fair value. For fiscal year 2019, there were no upward or downward adjustments on equity investments as a result of adoption of the measurement alternative. As of June 28, 2019 and June 29, 2018 , the Company had $23 million and $26 million , respectively, of held for sale land and building (collectively, the "properties") included in Other current assets on its Consolidated Balance Sheets. During fiscal year 2019, the Company completed the sale of certain property in the Americas and recorded a gain of approximately $78 million . Additionally, the Company accepted an offer to sell certain property in Asia and thereafter, recorded an impairment charge of approximately $3 million . The gain and the impairment charge were recorded in Restructuring and other, net in the Company's Consolidated Statement of Operations. The sale of the property was subsequently completed in the beginning of fiscal year 2020. Please refer to Note 17. Subsequent Events for more details. During fiscal year 2018, the Company completed the sale of certain properties and recorded a gain of approximately $25 million , which was included in Restructuring and other, net in the Consolidated Statements of Operations. No impairment was identified during fiscal year 2018. During fiscal year 2017, the Company recorded impairment charges of $35 million in order to write down the carrying amount of certain properties to their estimated fair values less costs to sell. The impairment charges were recorded in Operating expenses in the Consolidated Statements of Operations. Other Fair Value Disclosures On June 17, 2019, the Company received approximately $1.3 billion in cash from TMHC for the redemption of all of the outstanding shares of non-convertible preferred stock of TMHC held by the Company. The debt security was recorded at amortized cost and its fair value approximates the carrying value at June 29, 2018. The fair value was determined utilizing Level 2 inputs such as discount rates and yield terms of similar types of securities issued by comparable companies. Please refer to Note 2. Balance Sheet Information for more details. The Company's debt is carried at amortized cost. The fair value of the Company's debt is derived using the closing price of the same debt instruments as of the date of valuation, which takes into account the yield curve, interest rates and other observable inputs. Accordingly, these fair value measurements are categorized as Level 2. The following table presents the fair value and amortized cost of the Company's debt in order of maturity: June 28, 2019 June 29, 2018 (Dollars in millions) Carrying Estimated Carrying Estimated 3.75% Senior Notes due November 2018 $ — $ — $ 499 $ 501 4.250% Senior Notes due March 2022 749 763 749 743 4.75% Senior Notes due June 2023 941 973 951 942 4.875% Senior Notes due March 2024 498 514 497 489 4.75% Senior Notes due January 2025 920 929 975 936 4.875% Senior Notes due June 2027 689 688 695 650 5.75% Senior Notes due December 2034 489 482 489 441 $ 4,286 $ 4,349 $ 4,855 $ 4,702 Less: debt issuance costs (33 ) — (36 ) — Long-term debt, net of debt issuance costs $ 4,253 $ 4,349 $ 4,819 $ 4,702 Less: current portion of long-term debt, net of debt issuance costs — — (499 ) (501 ) Long-term debt, less current portion $ 4,253 $ 4,349 $ 4,320 $ 4,201 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 28, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Share Capital The Company's authorized share capital is $13,500 and consists of 1,250,000,000 ordinary shares, par value $0.00001 , of which 269,097,971 shares were outstanding as of June 28, 2019 , and 100,000,000 preferred shares, par value $0.00001 , of which none were issued or outstanding as of June 28, 2019 . Ordinary shares - Holders of ordinary shares are entitled to receive dividends when and as declared by the Company's board of directors (the "Board of Directors"). Upon any liquidation, dissolution, or winding up of the Company, after required payments are made to holders of preferred shares, any remaining assets of the Company will be distributed ratably to holders of the preferred and ordinary shares. Holders of shares are entitled to one vote per share on all matters upon which the ordinary shares are entitled to vote, including the election of directors. Preferred shares - The Company may issue preferred shares in one or more series, up to the authorized amount, without shareholder approval. The Board of Directors is authorized to establish from time to time the number of shares to be included in each series, and to fix the rights, preferences and privileges of the shares of each wholly unissued series and any of its qualifications, limitations or restrictions. The Board of Directors can also increase or decrease the number of shares of a series, but not below the number of shares of that series then outstanding, without any further vote or action by the shareholders. The Board of Directors may authorize the issuance of preferred shares with voting or conversion rights that could harm the voting power or other rights of the holders of the ordinary shares. The issuance of preferred shares, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of the Company and might harm the market price of its ordinary shares and the voting and other rights of the holders of ordinary shares. Repurchases of Equity Securities All repurchases are effected as redemptions in accordance with the Company's Articles of Association. On October 29, 2018, the Company’s Board of Directors authorized the repurchase of an additional $2.3 billion of its outstanding ordinary shares and as a result, the Company had an aggregate authority to repurchase approximately $3.0 billion of its ordinary shares. As of June 28, 2019 , $2.2 billion remained available for repurchase under the existing repurchase authorization limit. The following table sets forth information with respect to repurchases of the Company's ordinary shares during fiscal years 2019 , 2018 and 2017 : (In millions) Number of Dollar Value Cumulative repurchased through July 1, 2016 328 $ 9,631 Repurchased in fiscal year 2017 (a) 13 487 Cumulative repurchased through June 30, 2017 341 10,118 Repurchased in fiscal year 2018 (a) 11 384 Cumulative repurchased through June 29, 2018 352 10,502 Repurchased in fiscal year 2019 (a) 22 997 Cumulative repurchased through June 28, 2019 374 $ 11,499 ___________________________________________________ (a) For fiscal years 2019, 2018 and 2017, includes net share settlements of $31 million , $23 million , and $27 million for 1 million , 1 million and 1 million shares in connection with tax withholding related to vesting of restricted stock units, respectively. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jun. 28, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation | Share-Based Compensation Share-Based Compensation Plans The Company's share-based compensation plans have been established to promote the Company's long-term growth and financial success by providing incentives to its employees, directors and consultants through grants of share-based awards. The provisions of the Company's share-based benefit plans, which allow for the grant of various types of equity-based awards, are also intended to provide greater flexibility to maintain the Company's competitive ability to attract, retain and motivate participants for the benefit of the Company and its shareholders. Seagate Technology plc 2012 Equity Incentive Plan (the “EIP”). On October 26, 2011 , the shareholders approved the EIP and authorized the issuance of up to a total of approximately 27.0 million ordinary shares, par value $0.00001 per share , plus any shares remaining available for grant under the Seagate Technology plc 2004 Share Compensation Plan (the "SCP") as of the effective date of the EIP (which was equal to approximately 11.0 million ordinary shares as of the effective date of the EIP and which will increase by such additional number of shares as will be returned to the share reserve in respect of awards previously granted under the SCP) (together, the “Share Reserve”). On October 22, 2014, the shareholders authorized the issuance from the EIP of an additional 25 million ordinary shares, par value $0.00001 per share. Any shares that are subject to options or share appreciation rights granted under the EIP will be counted against the Share Reserve as one share for every one share granted, and any shares that are subject to restricted share bonus awards, restricted share units, performance share bonus awards or performance share awards (collectively, “Full-Value Share Awards”) will generally be counted against the Share Reserve as 2.5 shares for every one share granted. On October 19, 2016, the shareholders authorized the issuance from the EIP of an additional 7.5 million ordinary shares, par value $0.00001 per share. As of June 28, 2019 , there were approximately 19.7 million ordinary shares available for issuance of Full-Value Share Awards under the EIP. Dot Hill Systems 2009 Equity Incentive Plan (the "DHEIP") . Seagate Technology plc acquired the Dot Hill Systems 2009 Equity Incentive Plan effective October 6, 2015. The Company assumed the remaining authorized but unused share reserve of approximately 2 million shares, based on the conversion ratio, from the DHEIP on the acquisition date. Effective April 24, 2019, the Company terminated the DHEIP and thus, no further grants will be made under the DHEIP. Outstanding awards granted under the DHEIP will remain subject to the terms of the DHEIP. Seagate Technology plc Employee Stock Purchase Plan (the "ESPP"). There are 60.0 million ordinary shares authorized to be issued under the ESPP. The ESPP consists of a six -month offering period with a maximum issuance of 1.5 million ordinary shares per offering period. The ESPP permits eligible employees to purchase ordinary shares through payroll deductions generally at 85% of the fair market value of the ordinary shares. As of June 28, 2019 , there were approximately 11.4 million ordinary shares available for issuance under the ESPP. Equity Awards Full-Value Share Awards (e.g. restricted share units, "RSU") generally vest over a period of three to four years, with cliff vesting of a portion of each award occurring annually, subject to continuous employment with the Company through the vesting date. Options generally vest as follows: 25% of the options will vest on the first anniversary of the vesting commencement date and the remaining 75% will vest ratably each month thereafter over the next 36 months. Options granted under the EIP and SCP have an exercise price equal to the fair market value of the Company's ordinary shares on the grant date. Fair market value is defined as the closing price of the Company's ordinary shares on NASDAQ on the grant date. The Company granted awards of performance-based share units ("PSU") to its senior executive officers under the SCP and the EIP where vesting is subject to both the continued employment of the participant by the Company and the achievement of certain performance goals established by the Compensation Committee of the Company's Board of Directors, including market-based performance goals. A single PSU represents the right to receive a single ordinary share of the Company. During fiscal years 2019 , 2018 and 2017 , the Company granted 0.4 million , 0.4 million and 0.6 million PSUs, respectively, where performance is measured based on a three-year average return on invested capital ("ROIC") goal and a relative total shareholder return ("TSR") goal, which is based on the Company's ordinary shares measured against a benchmark TSR of a peer group over the same three-year period (the "TSR/ROIC" awards). These awards vest after the end of the performance period of three years from the grant date. A percentage of these units may vest only if at least the minimum ROIC goal is met regardless of whether the TSR goal is met. The number of share units to vest will range from 0% to 200% of the targeted units. In evaluating the fair value of these units, the Company used a Monte Carlo simulation on the grant date, taking the market-based TSR goal into consideration. Compensation expense related to these units is only recorded in a period if it is probable that the ROIC goal will be met, and it is to be recorded at the expected level of achievement. The Company also granted 0.1 million , 0.2 million and 0.2 million PSUs during fiscal years 2019 , 2018 and 2017 , respectively, to its senior executive officers which are subject to a performance goal related to the Company's adjusted earnings per share (the "AEPS" awards). These awards have a maximum seven -year vesting period, with 25% annual vesting starting on the first anniversary of the grant date. If the performance goal is not achieved, vesting is delayed to a following year in which the AEPS goal is achieved. Any unvested awards from prior years may vest cumulatively in a future year within the seven -year vesting period if the annual AEPS goal is achieved during a subsequent year. If the AEPS goal has not been met by the end of the seven year period, any unvested shares will be forfeited. Determining Fair Value of Seagate Technology Stock Plans Valuation and amortization method - The Company estimates the fair value of stock options, RSU and performance awards subject to an AEPS condition granted using the Black-Scholes-Merton valuation model and a single share award approach. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period or the remaining service (vesting) period. Expected Term - Expected term represents the period that the Company's share-based awards are expected to be outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the share-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of its share-based awards. Expected Volatility - The Company uses a combination of the implied volatility of its traded options and historical volatility of its share price. Expected Dividend - The Black-Scholes-Merton valuation model calls for a single expected dividend yield as an input. The dividend yield is determined by dividing the expected per share dividend during the coming year by the grant date share price. The expected dividend assumption is based on the Company's current expectations about its anticipated dividend policy. Also, because the expected dividend yield should reflect marketplace participants' expectations, the Company does not incorporate changes in dividends anticipated by management unless those changes have been communicated to or otherwise are anticipated by marketplace participants. Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes-Merton valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term. Where the expected term of the Company's share-based awards do not correspond with the terms for which interest rates are quoted, the Company performed a straight-line interpolation to determine the rate from the available term maturities. The fair value of the Company's shares related to options and RSU granted to employees, shares issued from the ESPP and PSUs subject to TSR/ROIC or AEPS conditions for fiscal years 2019 , 2018 and 2017 were estimated using the following assumptions: Fiscal Years 2019 2018 2017 Options Expected term (in years) 4.2 4.2 4.2 Volatility 39 - 40% 38 - 42% 38 - 42% Weighted-average volatility 39 % 40 % 39 % Expected dividend rate 4.6 - 5.0% 3.8 - 7.4% 4.9 - 6.4% Weighted-average expected dividend rate 4.7 % 6.8 % 6.3 % Risk-free interest rate 2.5 - 2.8% 1.5 - 2.7% 1.1 - 1.8% Weighted-average fair value $ 11.49 $ 6.56 $ 6.83 RSU Expected term (in years) 4.2 4.2 4.2 Expected dividend rate 4.1 - 6.4% 3.5 - 7.4% 4.6 - 7.7% Weighted-average expected dividend rate 4.68 % 7.11 % 6.4 % Weighted-average fair value $ 44.37 $ 26.69 $ 30.85 ESPP Expected term (in years) 0.5 0.5 0.5 Volatility 34 - 42% 37 - 38% 36 - 49% Weighted-average volatility 38 % 37 % 43 % Expected dividend rate 4.8 - 5.6% 4.6 - 7.6% 5.6 - 7.8% Weighted-average expected dividend rate 5.2 % 6.5 % 6.8 % Risk-free interest rate 2.2 - 2.4% 1.1 - 1.6% 0.4 - 0.6% Weighted-average fair value $ 12.18 $ 10.10 $ 9.78 PSUs subject to market condition Expected term (in years) 3.0 3.0 3.0 Volatility 46 % 45 % 41 - 42% Weighted-average volatility 46 % 45 % 41 % Expected dividend rate 5.0 % 8.1 % 6.3 - 7.0% Weighted-average expected dividend rate 5.0 % 8.1 % 7.0 % Risk-free interest rate 2.8 % 1.4 % 0.9 - 1.3% Weighted-average fair value $ 46.38 $ 25.90 $ 32.41 PSUs subject to an AEPS condition Expected term (in years) 4.2 4.2 4.2 Expected dividend rate 4.6 - 5.0% 5.8 - 7.2% 5.9 - 6.4% Weighted-average expected dividend rate 4.7 % 7.0 % 6.2 % Weighted-average fair value $ 43.92 $ 27.10 $ 31.61 Share-based Compensation Expense The Company recorded $99 million , $112 million and $137 million of share-based compensation during fiscal years 2019 , 2018 and 2017 , respectively. Management has made an estimate of expected forfeitures and is recognizing compensation costs only for those equity awards expected to vest. When estimating forfeitures, the Company considers voluntary termination behavior as well as the historical analysis of actual forfeited awards. Stock Option Activity The Company issues new ordinary shares upon exercise of stock options. The following is a summary of option activities: Options Number of Weighted- Weighted- Aggregate (In millions) (In years) (Dollars in millions) Outstanding at June 29, 2018 4.0 $ 39.00 5.0 $72 Granted 0.4 $ 48.99 Exercised (0.4 ) $ 33.55 Forfeitures (0.5 ) $ 35.71 Expirations — $ — Outstanding at June 28, 2019 3.5 $ 41.04 4.2 $29 Vested and expected to vest at June 28, 2019 3.4 $ 41.06 4.2 $29 Exercisable at June 28, 2019 2.1 $ 42.11 3.6 $16 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's ordinary shares for the options that were in-the-money at June 28, 2019 . During fiscal years 2019 , 2018 and 2017 , the aggregate intrinsic value of options exercised under the Company's stock option plans was $5 million , $34 million and $29 million , respectively, determined as of the date of option exercise. The aggregate fair value of options vested during fiscal years 2019 , 2018 and 2017 were approximately $9 million , $12 million and $15 million , respectively. At June 28, 2019 , the total compensation cost related to options granted to employees but not yet recognized was approximately $10 million , net of estimated forfeitures of approximately $2 million . This cost is being amortized on a straight-line basis over a weighted-average remaining term of approximately 2.2 years and will be adjusted for subsequent changes in estimated forfeitures. Nonvested Awards Activity The following is a summary of nonvested award activities which do not contain a performance condition: Nonvested Awards Number of Weighted- (In millions) Nonvested at June 29, 2018 5.2 $ 30.74 Granted 2.5 $ 44.37 Forfeitures (0.6 ) $ 33.45 Vested (1.7 ) $ 32.72 Nonvested at June 28, 2019 5.4 $ 36.01 At June 28, 2019 , the total compensation cost related to nonvested awards granted to employees but not yet recognized was approximately $129 million , net of estimated forfeitures of approximately $12 million . This cost is being amortized on a straight-line basis over a weighted-average remaining term of 2.3 years and will be adjusted for subsequent changes in estimated forfeitures. The aggregate fair value of nonvested awards vested during fiscal years 2019 , 2018 and 2017 were approximately $57 million , $76 million and $73 million , respectively. Performance Awards The following is a summary of nonvested award activities which contain a performance condition: Performance Awards Number of Weighted- (In millions) Performance units at June 29, 2018 1.2 $ 33.34 Granted 0.5 $ 45.74 Forfeitures (0.4 ) $ 27.11 Vested (0.3 ) $ 43.85 Performance units at June 28, 2019 1.0 $ 43.81 At June 28, 2019 , the total compensation cost related to performance awards granted to employees but not yet recognized was approximately $18 million , net of estimated forfeitures of approximately $1 million . This cost is being amortized on a straight-line basis over a weighted-average remaining term of 1.6 years. The aggregate fair value of performance awards vested during fiscal years 2019 , 2018 and 2017 were approximately $12 million , $11 million and $17 million , respectively. ESPP During fiscal years 2019 , 2018 and 2017 , the aggregate intrinsic value of shares purchased under the Company's ESPP was approximately $10 million , $31 million and $24 million , respectively. At June 28, 2019 , the total compensation cost related to options to purchase the Company's ordinary shares under the ESPP but not yet recognized was approximately $1.6 million . This cost will be amortized on a straight-line basis over a weighted-average period of approximately one month . During fiscal year 2019 , the Company issued 1.4 million ordinary shares with a weighted-average exercise price of $40.85 per share. Tax-Deferred Savings Plan The Company has a tax-deferred savings plan, the Seagate 401(k) Plan (the "401(k) plan"), for the benefit of qualified employees. The 401(k) plan is designed to provide employees with an accumulation of funds at retirement. Qualified employees may elect to make contributions to the 401(k) plan on a bi-weekly basis. Pursuant to the 401(k) plan, the Company matches 50% of employee contributions, up to 6% of compensation, subject to maximum annual contributions of $6,000 per participating employee. During fiscal years 2019 , 2018 and 2017 , the Company made matching contributions of $16 million , $16 million and $18 million , respectively. Deferred Compensation Plans The Company has adopted the SDCPs for the benefit of eligible employees. These plans are designed to permit certain discretionary employer contributions, in excess of the tax limits applicable to the 401(k) plan and to permit employee deferrals in excess of certain tax limits. During fiscal year 2014, the Company entered into a TRS in order to manage the equity market risks associated with the SDCPs liabilities. See Note 8. Derivative Financial Instruments contained in this report for additional information about the TRS. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 28, 2019 | |
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 ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in fair market value of the Company’s share price can result in a greater dilutive effect from potentially dilutive securities. The following table sets forth the computation of basic and diluted net income per share attributable to the shareholders of the Company: Fiscal Years Ended (In millions, except per share data) June 28, June 29, June 30, Numerator: Net income $ 2,012 $ 1,182 $ 772 Number of shares used in per share calculations: Total shares for purposes of calculating basic net income per share 282 288 296 Weighted-average effect of dilutive securities: Employee equity award plans 3 4 3 Total shares for purposes of calculating diluted net income per share 285 292 299 Net income per share Basic $ 7.13 $ 4.10 $ 2.61 Diluted $ 7.06 $ 4.05 $ 2.58 The following potential shares were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive: Fiscal Years Ended (In millions) June 28, June 29, June 30, Employee equity award plans — 1 1 |
Business Segment and Geographic
Business Segment and Geographic Information | 12 Months Ended |
Jun. 28, 2019 | |
Segment Reporting [Abstract] | |
Business Segment and Geographic Information | Business Segment and Geographic Information The Company’s manufacturing operations are based on technology platforms that are used to produce various data storage and systems solutions that serve multiple applications and markets. The Company has determined that its Chief Operating Decision Maker (“CODM”), the Chief Executive Officer, evaluates performance of the Company and makes decisions regarding investments in the Company’s technology platforms and manufacturing infrastructure based on the Company’s consolidated results. As a result, the Company has concluded that its manufacture and distribution of storage solutions constitutes one reporting segment. In fiscal years 2019 and 2018, no customer accounted for more than 10% of consolidated revenue. In fiscal year 2017, only Dell Inc. accounted for approximately 10% of consolidated revenue. The following table summarizes the Company's operations by geographic area: Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, Revenue from external customers (a) : Singapore $ 5,085 $ 5,445 $ 5,070 United States 3,310 3,719 3,535 The Netherlands 1,630 1,598 1,501 Other 365 422 665 Consolidated $ 10,390 $ 11,184 $ 10,771 Long-lived assets: Thailand $ 558 $ 426 $ 414 Singapore 556 600 570 United States 523 565 643 China 62 45 58 Other 224 212 248 Consolidated $ 1,923 $ 1,848 $ 1,933 ___________________________________ (a) Revenue is attributed to countries based on the bill from location. |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 12 Months Ended |
Jun. 28, 2019 | |
Legal, Environmental and Other Contingencies Disclosure [Abstract] | |
Legal, Environmental and Other Contingencies | Legal, Environmental and Other Contingencies The Company assesses the probability of an unfavorable outcome of all its material litigation, claims or assessments to determine whether a liability had been incurred and whether it is probable that one or more future events will occur confirming the fact of the loss. In the event that an unfavorable outcome is determined to be probable and the amount of the loss can be reasonably estimated, the Company establishes an accrual for the litigation, claim or assessment. In addition, in the event an unfavorable outcome is determined to be less than probable, but reasonably possible, the Company will disclose an estimate of the possible loss or range of such loss; however, when a reasonable estimate cannot be made, the Company will provide disclosure to that effect. Litigation is inherently uncertain and may result in adverse rulings or decisions. Additionally, the Company may enter into settlements or be subject to judgments that may, individually or in the aggregate, have a material adverse effect on its results of operations. Accordingly, actual results could differ materially. Intellectual Property Litigation Convolve, Inc. (“Convolve”) and Massachusetts Institute of Technology (“MIT”) v. Seagate Technology LLC, et al. On July 13, 2000, Convolve and MIT filed suit against Compaq Computer Corporation and Seagate Technology LLC in the U.S. District Court for the Southern District of New York, alleging infringement of U.S. Patent No. 4,916,635 (the “‘635 patent”) and U.S. Patent No. 5,638,267 (the “‘267 patent”), misappropriation of trade secrets, breach of contract and other claims. On January 16, 2002, Convolve filed an amended complaint, alleging defendants were infringing U.S. Patent No. 6,314,473 (the “‘473 patent”). The district court ruled in 2010 that the ‘267 patent was out of the case. On August 16, 2011, the district court granted in part and denied in part the Company’s motion for summary judgment. On July 1, 2013, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court’s summary judgment rulings that Seagate did not misappropriate any of the alleged trade secrets and that the asserted claims of the ‘635 patent are invalid; 2) reversed and vacated the district court’s summary judgment of non-infringement with respect to the ‘473 patent; and 3) remanded the case for further proceedings on the ‘473 patent. On July 11, 2014, the district court granted the Company’s further summary judgment motion regarding the ‘473 patent. On February 10, 2016, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court’s summary judgment of no direct infringement by Seagate because Seagate’s ATA/SCSI disk drives do not meet the “user interface” limitation of the asserted claims of the ‘473 patent; 2) affirmed the district court’s summary judgment of non-infringement by Compaq’s products as to claims 1, 3, and 5 of the ‘473 patent because Compaq’s F10 BIOS interface does not meet the “commands” limitation of those claims; 3) vacated the district court’s summary judgment of non-infringement by Compaq’s accused products as to claims 7-15 of the ‘473 patent; 4) reversed the district court’s summary judgment of non-infringement based on intervening rights; and 5) remanded the case to the district court for further proceedings on the ‘473 patent. In view of the rulings made by the district court and the Court of Appeals and the uncertainty regarding the amount of damages, if any, that could be awarded Convolve in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter. 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. On June 25, 2019, the court stayed and administratively closed the case for a period of 60 days, ending on August 26, 2019, for the purpose of facilitating settlement of the case at mediation. The court indicated that if the action has not settled as of August 27, 2019, the court will issue an order scheduling trial and setting pretrial deadlines. 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 (2011/65/EU), which prohibits the use of certain substances, including lead, in certain products, including disk drives and server storage products, put on the market after July 1, 2006. Similar legislation has been or may be enacted in other jurisdictions, including in the United States, Canada, Mexico, Taiwan, China, Japan and others. The European Union REACH Directive (Registration, Evaluation, Authorization, and Restriction of Chemicals, EC 1907/2006) also restricts substances of very high concern (“SVHCs”) in products. If the Company or its suppliers fails to comply with the substance restrictions, recycle requirements or other environmental requirements as they are enacted worldwide, it could have a materially adverse effect on the Company’s business. Other Matters The Company is involved in a number of other judicial, regulatory or administrative proceedings and investigations incidental to its business, and the Company may be involved in such proceedings and investigations arising in the normal course of its business in the future. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on its financial position or results of operations. |
Commitments
Commitments | 12 Months Ended |
Jun. 28, 2019 | |
Commitments Disclosure [Abstract] | |
Commitments | Commitments Unconditional Long-Term Purchase Obligations. As of June 28, 2019 , the Company had unconditional long-term purchase obligations of approximately $212 million , primarily related to purchase minimum quarterly amounts of inventory components at fixed contractual prices. The Company expects the commitment to total $22 million , $13 million , $2 million , $51 million , $48 million and $76 million for fiscal years 2021, 2022, 2023, 2024, 2025 and thereafter, respectively. Leases . The Company leases certain property, facilities and equipment under non-cancelable lease agreements. Land and facility leases expire at various dates through 2082 and contain various provisions for rental adjustments including, in certain cases, a provision based on increases in the Consumer Price Index. In addition, certain leases provide for renewal of the lease at the Company's option at expiration of the lease. The lease term begins on the date of initial possession of the leased property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease inception. All of the leases require the Company to pay property taxes, insurance and normal maintenance costs, which are expensed as incurred. Future minimum lease payments for operating leases (including accrued lease payments relating to restructuring plans) with initial or remaining terms of one year or more were as follows at June 28, 2019 (lease payments are shown net of sublease income): Fiscal Years Ending Operating Leases (Dollars in millions) 2020 $ 20 2021 17 2022 9 2023 8 2024 5 Thereafter 66 Total $ 125 Total rent expense for all land, facility and equipment operating leases, net of sublease income, was $18 million , $22 million and $29 million for fiscal years 2019 , 2018 and 2017 , respectively. Unconditional Long-term Capital Expenditures . As of June 28, 2019 , the Company had $23 million unconditional long-term commitment primarily related to purchases of equipment. |
Guarantees
Guarantees | 12 Months Ended |
Jun. 28, 2019 | |
Guarantees [Abstract] | |
Guarantees | Guarantees Indemnifications of Officers and Directors On May 4, 2009, Seagate Technology, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Seagate-Cayman”), then the parent company, entered into a new form of indemnification agreement (the “Revised Indemnification Agreement”) with its officers and directors of Seagate-Cayman and its subsidiaries (each, an “Indemnitee”). The Revised Indemnification Agreement provides indemnification in addition to any of Indemnitee's indemnification rights under Seagate-Cayman's Articles of Association, applicable law or otherwise, and indemnifies an Indemnitee for certain expenses (including attorneys' fees), judgments, fines and settlement amounts actually and reasonably incurred by him or her in any action or proceeding, including any action by or in the right of Seagate-Cayman or any of its subsidiaries, arising out of his or her service as a director, officer, employee or agent of Seagate-Cayman or any of its subsidiaries or of any other entity to which he or she provides services at Seagate-Cayman's request. However, an Indemnitee shall not be indemnified under the Revised Indemnification Agreement for (i) any fraud or dishonesty in the performance of Indemnitee's duty to Seagate-Cayman or the applicable subsidiary of Seagate-Cayman or (ii) Indemnitee's conscious, intentional or willful failure to act honestly, lawfully and in good faith with a view to the best interests of Seagate-Cayman or the applicable subsidiary of Seagate-Cayman. In addition, the Revised Indemnification Agreement provides that Seagate-Cayman will advance expenses incurred by an Indemnitee in connection with enforcement of the Revised Indemnification Agreement or with the investigation, settlement or appeal of any action or proceeding against him or her as to which he or she could be indemnified. On July 3, 2010, pursuant to a corporate reorganization, the common shareholders of Seagate-Cayman became ordinary shareholders of Seagate Technology plc (the "Company") and Seagate-Cayman became a wholly owned subsidiary of the Company, as described more fully in the Current Report on Form 8-K filed by the Company on July 6, 2010 (the “Redomestication”). On July 27, 2010, in connection with the Redomestication, the Company, as sole shareholder of Seagate-Cayman, approved a form of deed of indemnity (the “Deed of Indemnity”), which provides for the indemnification by Seagate-Cayman of any director, officer, employee or agent of the Company, Seagate-Cayman or any subsidiary of the Company (each, a “Deed Indemnitee”), in addition to any indemnification rights of a Deed Indemnitee under the Company's Articles of Association, applicable law or otherwise, with a similar scope to the Revised Indemnification Agreement. Seagate-Cayman entered into Deeds of Indemnity with certain Deed Indemnitees effective as of July 3, 2010 and continues to enter into Deeds of Indemnity with additional Deed Indemnitees from time to time. The nature of these indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay on behalf of its officers and directors. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the Company's consolidated financial statements with respect to these indemnification obligations. Intellectual Property Indemnification Obligations The Company has entered into agreements with customers and suppliers that include limited intellectual property indemnification obligations that are customary in the industry. These guarantees generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party intellectual property claims arising from these transactions. The nature of the intellectual property indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to its customers and suppliers. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the Company's consolidated financial statements with respect to these indemnification obligations. Product Warranty The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally provides warranty on its products for a period of 1 to 5 years. The Company's warranty provision considers estimated product failure rate and trends, estimated repair and replacement cost, and uses statistical modeling to estimate product return rates in order to determine its warranty obligation. As of June 28, 2019, the Company’s reserve for product warranty was $195 million as compared to $237 million as of June 29, 2018. This decrease of $42 million was primarily driven by a continued decline in cost to repair and a decrease in the Company's warranty return rate as compared to prior year. Changes in the Company's product warranty liability during the fiscal years ended June 28, 2019 , June 29, 2018 and June 30, 2017 were as follows: Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, Balance, beginning of period $ 237 $ 233 $ 206 Warranties issued 112 147 131 Repairs and replacements (99 ) (106 ) (114 ) Changes in liability for pre-existing warranties, including expirations (55 ) (37 ) 10 Balance, end of period $ 195 $ 237 $ 233 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declared On July 30, 2019 , the Company's Board of Directors declared a quarterly cash dividend of $0.63 per share, which will be payable on October 9, 2019 to shareholders of record as of the close of business on September 25, 2019 . Sale of Certain Property In July 2019, the Company sold certain property in Asia previously classified as held for sale land and building of $ 23 million at June 28, 2019. No additional impairment loss or gain was incurred in the first quarter of fiscal year 2020. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 28, 2019 | |
Significant Accounting Policies | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The consolidated financial statements include the accounts of the Company and all its wholly-owned and majority-owned subsidiaries, after elimination of intercompany transactions and balances. The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its consolidated financial statements. |
Fiscal Period | The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Accordingly, fiscal years 2019 , 2018 and 2017 were comprised of 52 weeks ended on June 28, 2019 , June 29, 2018 and June 30, 2017 , respectively. All references to years in these Notes to Consolidated Financial Statements represent fiscal years unless otherwise noted. Fiscal year 2020 will be comprised of 53 weeks and will end on July 3, 2020 . Fiscal year 2026 will also be comprised of 53 weeks and will end on July 3, 2026. |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and Cash Equivalents. The Company considers all highly liquid investments with a remaining maturity of 90 days or less at the time of purchase to be cash equivalents. Cash equivalents are carried at cost, which approximates fair value. Restricted Cash and Cash Equivalents. Restricted cash and cash equivalents represent cash and cash equivalents that are restricted as to withdrawal or use for other than current operations. Short-Term Investments. The Company has short-term investments that are primarily comprised of money market funds, time deposits and certificates of deposits. The Company has classified its marketable securities as available-for-sale and they are stated at fair value with unrealized gains and losses included in Accumulated other comprehensive loss , which is a component of Shareholders' Equity. The Company evaluates the available-for sale securities in an unrealized loss position for other-than-temporary impairment. Realized gains and losses are included in Other, net on the Company's Consolidated Statements of Operations. The cost of securities sold is based on the specific identification method. |
Allowances for Doubtful Accounts | Allowances for Doubtful Accounts. The Company maintains allowances for uncollectible accounts receivable based upon expected collectability. This reserve is established based upon historical trends, global macroeconomic conditions and an analysis of specific exposures. The provision for doubtful accounts is recorded as a charge to Marketing and administrative expense |
Inventory | Inventories. Inventories are valued at the lower of cost (using the first-in, first-out method) and net realizable value. Net realizable value is based upon the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Adjustments to reduce cost of inventories to its net realizable value are made, if required, for estimated excess or obsolescence determined primarily by future demand forecasts. |
Property, Equipment and Leasehold Improvements | Property, Equipment and Leasehold Improvements. Property, equipment and leasehold improvements are stated at cost. Equipment and buildings are depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized using the straight-line method over the shorter of the estimated life of the asset or the remaining term of the lease. The costs of additions and substantial improvements to property, equipment and leasehold improvements, which extend the economic life of the underlying assets, are capitalized. The cost of maintenance and repairs to property, equipment and leasehold improvements is expensed as incurred. |
Assessment of Goodwill and Other Long-Lived Assets for Impairment | Goodwill. The Company performs a qualitative assessment in the fourth quarter of each year, or more frequently if indicators of potential impairment exist, to determine if any events or circumstances exist, such as an adverse change in business climate or a decline in the overall industry that would indicate that it would more likely than not reduce the fair value of a reporting unit below its carrying amount, including goodwill. If it is determined in the qualitative assessment that the fair value of a reporting unit is more likely than not below its carrying amount, including goodwill, then the Company will perform a quantitative impairment test. The quantitative goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. Any excess in the carrying value of a reporting unit's goodwill over its fair value is recognized as an impairment loss, limited to the total amount of goodwill allocated to that reporting unit. Other Long-lived Assets. The Company tests other long-lived assets, including property, equipment and leasehold improvements and other intangible assets subject to amortization, for recoverability whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. The Company performs a recoverability test to assess the recoverability of an asset group. If the recoverability test indicates that the carrying value of the asset group is not recoverable, the Company will estimate the fair value of the asset group and the excess of the carrying value over the fair value is allocated pro rata to derive the adjusted carrying value of assets in the asset group. The adjusted carrying value of each asset in the asset group is not reduced below its fair value. The Company tests other intangible assets not subject to amortization whenever events occur or circumstances change, such as declining financial performance, deterioration in the environment in which the entity operates or deteriorating macroeconomic conditions that have a negative effect on future expected earnings and cash flows that could affect significant inputs used to determine the fair value of the indefinite-lived intangible asset. |
Assets Held For Sale | Assets Held for Sale. The Company classifies its long-lived assets to be sold as held for sale in the period (i) it has approved and committed to a plan to sell the asset, (ii) the asset is available for immediate sale in its present condition, (iii) an active program to locate a buyer and other actions required to sell the asset have been initiated, (iv) the sale of the asset is probable, (v) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and (vi) it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a long-lived asset that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a long-lived asset until the date of sale. Upon designation as an asset held for sale, the Company stops recording depreciation expense on the asset. The Company assesses the fair value of a long-lived asset less any costs to sell at each reporting period and until the asset is no longer classified as held for sale. |
Investment in Debt Security and Payment-in-Kind (PIK) Income | Investment in Debt Security and Payment-in-Kind (“PIK”) Income. The Company had a debt investment in non-convertible preferred stock of Toshiba Memory Holdings Corporation ("TMHC", formerly known as "K.K. Pangea") that was fully redeemed by TMHC in June 2019. The Company classified the investment as held-to-maturity as it had the positive intent and ability to hold the security until maturity. This held-to-maturity investment was carried at amortized cost and recorded as Investment in debt security on the Consolidated Balance Sheets. Transaction costs incurred by the Company to acquire this investment were capitalized and amortized as a reduction of interest income on the Consolidated Statements of Operations over the respective term of the investment. The investment contained a PIK income provision, which represented contractual interest that was due upon redemption, and was accrued and recorded as Interest income each reporting period and added to the carrying value of the Investment in debt security. |
Derivative Financial Instruments | Derivative Financial Instruments. The Company records all derivatives on the balance sheet at fair value and establishes criteria for designation and effectiveness of hedging relationships. The Company continues to exclude the change in forward points from the assessment of hedge effectiveness and recognizes the excluded component in Other , net in the Consolidated Statements of Operations. Foreign currency forward exchange contracts not designated as hedge instruments are used to economically hedge the foreign currency exposure in the value of an investment denominated in currency other than U.S. dollar. The Company recognizes the unrealized gains and losses due to the changes in the fair value of these contracts in Other , net in the Consolidated Statements of Operations along with the foreign currency gains and losses on remeasurement of such investment. The Company is exposed to foreign currency exchange rate, interest rate and to a lesser extent, equity market risks relating to its ongoing business operations. From time to time, the Company enters into cash flow hedges in the form of foreign currency forward exchange contracts in order to manage the foreign currency exchange rate risk 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 the Consolidated Balance Sheets at fair value. The changes in the fair value of highly effective designated cash flow hedges are recorded in Accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments or are not assessed to be highly effective are adjusted to fair value through earnings. The amount of net unrealized gain and loss on cash flow hedges was not material as of June 28, 2019 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 affects earnings or it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in Accumulated other comprehensive loss are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings. The Company did not recognize any material amounts related to the loss of hedge designation on discontinued cash flow hedges during fiscal year s 2019 , 2018 and 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 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 its Consolidated Balance Sheet. |
Establishment of Warranty Accruals | Warranty. The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally provides warranty on its products for a period of 1 to 5 years. The Company's warranty provision considers estimated product failure rates and trends (including the timing of product returns during the warranty periods), and estimated repair or replacement costs related to product quality issues, if any. The Company also exercises judgment in estimating its ability to sell refurbished products. The Company's judgment is subject to a greater degree of subjectivity with respect to newly introduced products because of limited experience with those products upon which to base our warranty estimates. Product Warranty The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally provides warranty on its products for a period of 1 to 5 years. The Company's warranty provision considers estimated product failure rate and trends, estimated repair and replacement cost, and uses statistical modeling to estimate product return rates in order to determine its warranty obligation. |
Revenue Recognition, Sales Returns and Allowances, and Sales Incentive Programs | Revenue Recognition, Sales Returns and Allowances, and Sales Incentive Programs. 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 in accordance with 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 Consolidated Statements of Operations. The Company records estimated variable consideration at the time of revenue recognition as a reduction to 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 retail 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. The Company elected a practical expedient to expense sales commissions as incurred because the amortization period would have been one year or less. These costs are recorded as Marketing and administrative on the Company's Consolidated Statements of Operations. |
Restructuring Costs | Restructuring Costs. The timing of recognition for severance costs depends on whether employees are required to render service until they are terminated in order to receive the termination benefits. If employees are required to render service until they are terminated in order to receive the termination benefits, a liability is recognized ratably over the future service period. Otherwise, a liability is recognized when management has committed to a restructuring plan and has communicated those actions to employees. Employee termination benefit costs covered by existing benefit arrangements are recognized when management has committed to a restructuring plan and the severance costs are probable and estimable. |
Advertising Expense | Advertising Expense. The cost of advertising is expensed as incurred. Advertising costs were approximately $22 million , $28 million and $16 million in fiscal years 2019 , 2018 and 2017 , respectively. |
Stock-Based Compensation | Share-Based Compensation. The Company has elected to apply the with-and-without method to assess the realization of related excess tax benefits. The Company also elected to continue to account for share-based compensation expense net of estimated forfeitures. Determining Fair Value of Seagate Technology Stock Plans Valuation and amortization method - The Company estimates the fair value of stock options, RSU and performance awards subject to an AEPS condition granted using the Black-Scholes-Merton valuation model and a single share award approach. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period or the remaining service (vesting) period. Expected Term - Expected term represents the period that the Company's share-based awards are expected to be outstanding and was determined based on historical experience of similar awards, giving consideration to the contractual terms of the share-based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of its share-based awards. Expected Volatility - The Company uses a combination of the implied volatility of its traded options and historical volatility of its share price. Expected Dividend - The Black-Scholes-Merton valuation model calls for a single expected dividend yield as an input. The dividend yield is determined by dividing the expected per share dividend during the coming year by the grant date share price. The expected dividend assumption is based on the Company's current expectations about its anticipated dividend policy. Also, because the expected dividend yield should reflect marketplace participants' expectations, the Company does not incorporate changes in dividends anticipated by management unless those changes have been communicated to or otherwise are anticipated by marketplace participants. Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes-Merton valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term. Where the expected term of the Company's share-based awards do not correspond with the terms for which interest rates are quoted, the Company performed a straight-line interpolation to determine the rate from the available term maturities. |
Accounting for Income Taxes | Accounting for Income Taxes . The Company makes certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of tax credits, recognition of income and deductions and calculation of specific tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for income tax and financial statement purposes, as well as tax liabilities associated with uncertain tax positions. The calculation of tax liabilities involves uncertainties in the application of complex tax rules and the potential for future adjustment of the Company’s uncertain tax positions by the Internal Revenue Service or other tax jurisdictions. If estimates of these tax liabilities are greater or less than actual results, an additional tax provision or benefit will result. The deferred tax assets the Company records each period depend primarily on the Company’s ability to generate future taxable income in the United States and certain non-U.S. jurisdictions. Each period, the Company evaluates the need for a valuation allowance for its deferred tax assets and, if necessary, adjusts the valuation allowance so that net deferred tax assets are recorded only to the extent the Company concludes it is more likely than not that these deferred tax assets will be realized. If the Company’s outlook for future taxable income changes significantly, the Company’s assessment of the need for, and the amount of, a valuation allowance may also change. |
Financial Instruments Remeasurement | Financial Instruments Remeasurement. Effective June 30, 2018, the Company adopted ASU 2016-01, Financial Instruments, which changed the way the Company accounts for equity investments that do not qualify for the equity method of accounting . Prior to fiscal year 2019, the Company's investments in privately-held companies without readily determinable fair value were accounted for under the cost method and were recorded at historical cost at the time of investment, with adjustments to the balance only when impairment occur. Upon adoption of ASU 2016-01, the Company's equity investment in privately-held companies without readily determinable fair values are now measured using the measurement alternative method 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 Consolidated Statements of Operations. |
Comprehensive Income | Comprehensive Income. The Company presents comprehensive income in a separate statement. Comprehensive income is comprised of net income and other gains and losses affecting equity that are excluded from net income. |
Foreign Currency Remeasurement and Translation | Foreign Currency Remeasurement and Translation. The U.S. dollar is the functional currency for the majority of the Company's foreign operations. Monetary assets and liabilities denominated in foreign currencies are remeasured into the functional currency of the subsidiary at the balance sheet date. The gains and losses from the remeasurement of foreign currency denominated balances into the functional currency of the subsidiary are included in Other, net on the Company's Consolidated Statements of Operations. The Company’s subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, and nonmonetary assets and liabilities at historical rates. The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Revenue and expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in Accumulated other comprehensive loss, which is a component of Shareholders’ Equity. |
Concentration of Credit Risk | Concentrations Concentration of Credit Risk. The Company's customer base for disk drive products is concentrated with a small number of customers. The Company does not generally require collateral or other security to support accounts receivable. To reduce credit risk, the Company performs ongoing credit evaluations on its customers' financial condition. The Company establishes allowances for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. Dell Inc. accounted for more than 10% of the Company's accounts receivable as of June 28, 2019 and June 29, 2018. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, investments and foreign currency forward exchange contracts. The Company mitigates concentrations of credit risk in its investments through diversifications, by investing in highly-rated securities and/or major multinational companies. In entering into foreign currency forward exchange contracts, the Company assumes the risk that might arise from the possible inability of counterparties to meet the terms of their contracts. The counterparties to these contracts are major multinational commercial and investment banks, and the Company has not incurred and does not expect any losses as a result of counterparty defaults. Supplier Concentration. Certain of the raw materials, components and equipment used by the Company in the manufacture of its products are available from single-sourced vendors. Shortages could occur in these essential materials and components due to an interruption of supply or increased demand in the industry. If the Company were unable to procure certain materials, components or equipment at acceptable prices, it would be required to reduce its manufacturing operations, which could have a material adverse effect on its results of operations. In addition, the Company may make prepayments to certain suppliers or enter into minimum volume commitment agreements. Should these suppliers be unable to deliver on their obligations or experience financial difficulty, the Company may not be able to recover these prepayments. |
Recent Accounting Pronouncements | Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-02 (ASC Topic 842), Leases and subsequently issued certain interpretive clarifications on this new guidance which amends a number of aspects of lease accounting, including requiring lessee to recognize a right-of-use ("ROU") asset and corresponding lease liability for operating leases and enhanced disclosures. The lease liability is measured at the present value of the remaining lease payments and the ROU asset will be based on the lease liability and is adjusted for lease prepayments, lease incentives received and the lessee's initial direct costs. The Company will adopt this ASU effective June 29, 2019 using the modified retrospective method. The Company will elect the practical expedients which allows for not reassessing whether existing contracts contain leases, the classifications of existing leases and whether the existing initial direct costs meet the new definition. In addition, the Company will elect to combine lease and non-lease components for facility leases and to keep leases with an initial term of 12 months or less off the balance sheet. While the Company will continue to evaluate the effect of adopting this guidance on its consolidated financial statements and related disclosures, the Company expects to recognize ROU assets and corresponding lease liabilities of approximately $114 million and $74 million, respectively, on the Consolidated Balance Sheet, primarily relating to real estate operating leases. The Company does not expect the adoption of this ASU to have a material impact on its other consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 (ASC Topic 326), Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments . This ASU amends the requirement on the measurement and recognition of expected credit losses for financial assets held. The Company is required to adopt this guidance in the first quarter of fiscal year 2021. Early adoption in the first quarter of fiscal year 2020 is permitted. The Company is in the process of assessing the impact of this ASU on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 (ASC Topic 220), Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This ASU was issued following the enactment of the U.S. Tax Cuts and Jobs Act of 2017 ("the Tax Act”) and permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The Company is required to adopt the guidance in the first quarter of fiscal 2020. The adoption of ASU 2018-02 is not expected to have a material effect on its 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 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 quarter ended September 28, 2018 under the modified retrospective approach with a cumulative adjustment to accumulated deficit at the date of adoption. 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 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 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 Inventories $ 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 consolidated financial statements for the year ended June 28, 2019 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 quarter ended September 28, 2018. For equity investments without readily determinable fair value, the Company elected the measurement method as cost, less impairments, and adjusted up or down based on observable price changes in orderly transactions for an identical or similar investment in the same issuer. The adoption of this guidance had no impact on the Company's 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 quarter ended September 28, 2018. The adoption of this guidance had no impact on the Company's 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 quarter ended September 28, 2018. The adoption of this guidance had no impact on its consolidated financial statements and disclosures. |
Fair Value, Policy | Measurement of Fair Value Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Fair Value Hierarchy A fair value hierarchy is based on whether the market participant assumptions used in determining fair value are obtained from independent sources (observable inputs) or reflects the Company's own assumptions of market participant valuation (unobservable inputs). A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are: Level 1 - Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 - Quoted prices for identical assets and liabilities in markets that are inactive; quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; or Level 3 - Prices or valuations that require inputs that are both unobservable and significant to the fair value measurement. The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, the Company's or the counterparty's non-performance risk is considered in determining the fair values of liabilities and assets, respectively. |
Leases | Leases . The Company leases certain property, facilities and equipment under non-cancelable lease agreements. Land and facility leases expire at various dates through 2082 and contain various provisions for rental adjustments including, in certain cases, a provision based on increases in the Consumer Price Index. In addition, certain leases provide for renewal of the lease at the Company's option at expiration of the lease. The lease term begins on the date of initial possession of the leased property for purposes of recognizing lease expense on a straight-line basis over the term of the lease. The Company does not assume renewals in its determination of the lease term unless the renewals are deemed to be reasonably assured at lease inception. All of the leases require the Company to pay property taxes, insurance and normal maintenance costs, which are expensed as incurred. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The Company applied 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 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 Inventories $ 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) | 12 Months Ended |
Jun. 28, 2019 | |
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 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 deposits 395 — 395 Total $ 1,016 $ — $ 1,016 Included in Cash and cash equivalents $ 1,012 Included in Other current assets 4 Total $ 1,016 The following table summarizes, by major type, the fair value and amortized cost of the Company's investments as of June 28, 2019 : (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale debt securities: Money market funds $ 417 $ — $ 417 Time deposits and certificates of deposit 133 — 133 Other debt securities 7 — 7 Total $ 557 $ — $ 557 Included in Cash and cash equivalents $ 548 Included in Other current assets 2 Included in Other assets, net 7 Total $ 557 |
Fair value and amortized cost of available-for-sale securities by contractual maturity | The fair value and amortized cost of the Company's investments classified as available-for-sale at June 28, 2019 by remaining contractual maturity were as follows: (Dollars in millions) Amortized Cost Fair Value Due in less than 1 year $ 550 $ 550 Due in 1 to 5 years 3 3 Due in 6 to 10 years — — Thereafter 4 4 Total $ 557 $ 557 |
Cash, Cash Equivalent, and Restricted Cash | The following table provides a summary of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that reconciles to the corresponding amount in the Consolidated Statements of Cash Flows: (Dollars in millions) June 28, June 29, June 30, July 1, Cash and cash equivalents $ 2,220 $ 1,853 $ 2,539 $ 1,125 Restricted cash included in Other current assets 31 4 4 7 Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows $ 2,251 $ 1,857 $ 2,543 $ 1,132 |
Schedule of Cash and Cash Equivalents | The following table provides a summary of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that reconciles to the corresponding amount in the Consolidated Statements of Cash Flows: (Dollars in millions) June 28, June 29, June 30, July 1, Cash and cash equivalents $ 2,220 $ 1,853 $ 2,539 $ 1,125 Restricted cash included in Other current assets 31 4 4 7 Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows $ 2,251 $ 1,857 $ 2,543 $ 1,132 |
Accounts Receivable, net | The following table provides details of the accounts receivable, net balance sheet item: (Dollars in millions) June 28, June 29, Accounts receivable $ 993 $ 1,188 Allowances for doubtful accounts (4 ) (4 ) Account receivable, net $ 989 $ 1,184 |
Activity in the allowance for doubtful accounts | Activity in the allowances for doubtful accounts is as follows: (Dollars in millions) Balance at Beginning of Period Charges (Credit) to Operations Deductions (a) Balance at End of Period Fiscal year ended June 30, 2017 $ 9 (4 ) — $ 5 Fiscal year ended June 29, 2018 $ 5 — (1 ) $ 4 Fiscal year ended June 28, 2019 $ 4 — — $ 4 ______________________________________________ (a) Uncollectible accounts written off, net of recoveries. |
Inventories | The following table provides details of the inventory balance sheet item: (Dollars in millions) June 28, June 29, Raw materials and components $ 336 $ 329 Work-in-process 217 347 Finished goods 417 377 Total inventories $ 970 $ 1,053 |
Property, Equipment and Leasehold Improvements, net | The components of property, equipment and leasehold improvements, net were as follows: (Dollars in millions) Useful Life in Years June 28, June 29, Land and land improvements $ 48 $ 55 Equipment 3 – 5 7,726 7,472 Buildings and leasehold improvements Up to 30 1,795 1,805 Construction in progress 266 193 9,835 9,525 Less: accumulated depreciation and amortization (7,966 ) (7,733 ) Property, equipment and leasehold improvements, net $ 1,869 $ 1,792 |
Accrued Expenses | The following table provides details of the accrued expenses balance sheet item: (Dollars in millions) June 28, June 29, Dividends payable $ 170 $ 181 Other accrued expenses 382 417 Total $ 552 $ 598 |
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 30, 2017 $ — $ — $ (5 ) $ (12 ) $ (17 ) Other comprehensive income (loss) before reclassifications — — 1 — 1 Amounts reclassified from AOCI — — — — — Other comprehensive income (loss) — — 1 — 1 Balance at June 29, 2018 — — (4 ) (12 ) (16 ) Other comprehensive income (loss) before reclassifications — — (16 ) (2 ) (18 ) Amounts reclassified from AOCI — — — — — Other comprehensive income (loss) — — (16 ) (2 ) (18 ) Balance at June 28, 2019 $ — $ — $ (20 ) $ (14 ) $ (34 ) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill are as follows: (Dollars in millions) Amount As of June 30, 2017 $ 1,238 Goodwill acquired — Goodwill disposed (1 ) Foreign currency translation effect — As of June 29, 2018 $ 1,237 Goodwill acquired — Goodwill disposed — Foreign currency translation effect — As of June 28, 2019 $ 1,237 |
Carrying value of intangible assets | The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 28, 2019 , is set forth in the following table: (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Existing technology $ 201 $ (143 ) $ 58 1.9 years Customer relationships 71 (38 ) 33 3.3 years Trade name 3 (2 ) 1 1.2 years Other intangible assets 41 (22 ) 19 2.9 years Total amortizable other intangible assets $ 316 $ (205 ) $ 111 2.5 years The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 29, 2018 is set forth in the following table: (Dollars in millions) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Useful Life Existing technology $ 256 $ (145 ) $ 111 2.5 years Customer relationships 89 (42 ) 47 4.0 years Trade name 17 (13 ) 4 1.3 years Other intangible assets 45 (19 ) 26 3.0 years Total amortizable other intangible assets $ 407 $ (219 ) $ 188 2.9 years |
Expected amortization expense for acquisition-related intangible assets | As of June 28, 2019 , expected amortization expense for other intangible assets for each of the next five years and thereafter is as follows: (Dollars in millions) Amount 2020 $ 54 2021 29 2022 20 2023 8 2024 — Thereafter — Total $ 111 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Fiscal Years Ended (Dollars in million) June 28, June 29, June 30, Revenues by Channel OEMs $ 7,261 $ 7,863 $ 7,478 Distributors 1,780 1,906 1,866 Retailers 1,349 1,415 1,427 Total $ 10,390 $ 11,184 $ 10,771 Revenues by Geography (1) Americas $ 3,310 $ 3,719 $ 3,531 EMEA 1,965 1,983 2,119 Asia Pacific 5,115 5,482 5,121 Total $ 10,390 $ 11,184 $ 10,771 ____________________________________________________ |
Restructuring and Exit Costs (T
Restructuring and Exit Costs (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Cost Type | The following table summarizes the Company's restructuring activities under all of the Company’s active restructuring plans for fiscal years 2019 , 2018 and 2017 : December 2017 Plan July 2017 Plan March 2017 Plan July 2016 Plan Other Plans (Dollars in millions) Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Total Accrual balances at July 1, 2016 $ — $ — $ — $ — $ — $ — $ — $ — $ 50 $ 13 $ 63 Restructuring charges — — — — 28 3 72 20 31 13 167 Cash payments — — — — (29 ) (3 ) (57 ) (18 ) (74 ) (17 ) (198 ) Adjustments — — — — 1 — 7 — (1 ) 4 11 Accrual balances at June 30, 2017 — — — — — — 22 2 6 13 43 Restructuring charges 28 6 38 4 — — 1 15 13 — 105 Cash payments (21 ) (2 ) (37 ) (3 ) (1 ) — (23 ) (16 ) (9 ) (3 ) (115 ) Adjustments (2 ) — (1 ) — 2 — 2 (1 ) 1 8 9 Accrual balances at June 29, 2018 5 4 — 1 1 — 2 — 11 18 42 Restructuring charges — 3 — — — — — 6 41 4 54 Cash payments (5 ) (5 ) — — (1 ) — (1 ) (6 ) (41 ) (6 ) (65 ) Adjustments — (1 ) — (1 ) — — (1 ) — 2 — (1 ) Accrual balances at June 28, 2019 — 1 — — — — — — 13 16 30 Total costs incurred to date as of June 28, 2019 $ 26 $ 8 $ 37 $ 3 $ 31 $ 3 $ 81 $ 40 $ 283 $ 63 $ 575 Total expected costs to be incurred as of June 28, 2019 $ — $ — $ — $ — $ — $ — $ — $ — $ 1 $ — $ 1 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Debt Disclosure [Abstract] | |
Future principal payments on long-term debt | At June 28, 2019 , future Principal payments on long-term debt were as follows (in millions): Fiscal Year Amount 2020 $ — 2021 — 2022 750 2023 941 2024 500 Thereafter 2,100 Total $ 4,291 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Tax Expense (Benefit) | Income (loss) before income taxes consisted of the following: Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, U.S. $ 275 $ (29 ) $ (22 ) Non-U.S. 1,097 1,447 837 $ 1,372 $ 1,418 $ 815 |
Schedule of Provision For (Benefits From) Income Taxes | The (benefit) provision for income taxes consisted of the following: Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, Current income tax expense: U.S. Federal $ — $ — $ — U.S. State — 5 1 Non-U.S. 45 38 39 Total Current 45 43 40 Deferred income tax (benefit) expense: U.S. Federal (690 ) 201 (5 ) U.S. State 12 — — Non-U.S. (7 ) (8 ) 8 Total Deferred (685 ) 193 3 (Benefit) provision for income taxes $ (640 ) $ 236 $ 43 |
Schedule of Deferred Tax Assets and Liabilities | Fiscal Years Ended (Dollars in millions) June 28, 2019 June 29, 2018 Deferred tax assets Accrued warranty $ 46 $ 55 Inventory carrying value adjustments 34 30 Receivable allowances 10 13 Accrued compensation and benefits 53 64 Depreciation 89 96 Restructuring accruals 4 5 Other accruals and deferred items 15 34 Net operating losses 743 812 Tax credit carryforwards 582 549 Other assets 7 10 Gross: Deferred tax assets 1,583 1,668 Less: Valuation allowance (460 ) (1,221 ) Net: Deferred tax assets 1,123 447 Deferred tax liabilities Unremitted earnings of certain non-U.S. entities (16 ) (7 ) Acquisition-related items (13 ) (30 ) Net: Deferred tax liabilities (29 ) (37 ) Total net deferred tax assets $ 1,094 $ 410 |
Schedule of Reconciliation Between the Provision for Income Taxes at the Statutory Rate and the Effective Tax Rate | For purposes of the reconciliation between the (benefit) provision for income taxes at the statutory rate and the effective tax rate, the Irish statutory rate of 25% was applied as follows: Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, Provision at statutory rate $ 343 $ 355 $ 204 Permanent differences 3 (2 ) 19 Effect of U.S. corporate tax rate change — 524 — Valuation allowance (742 ) (297 ) 2 Non-U.S. losses with no tax benefits — — 17 Earnings taxed at other than statutory rate (234 ) (317 ) (185 ) Research credit (38 ) (25 ) (14 ) Tax expense (benefit) related to intercompany transactions 23 — (2 ) Other individually immaterial items 5 (2 ) 2 (Benefit) provision for income taxes $ (640 ) $ 236 $ 43 |
Schedule of Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the Company's gross unrecognized tax benefits: Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, Balance of unrecognized tax benefits at the beginning of the year $ 60 $ 74 $ 76 Gross increase for tax positions of prior years 22 2 2 Gross decrease for tax positions of prior years (9 ) (3 ) (7 ) Gross increase for tax positions of current year 16 7 16 Gross decrease for tax positions of current year — — — Settlements — — — Lapse of statutes of limitation (6 ) (20 ) (13 ) Non-U.S. exchange gain — — — Balance of unrecognized tax benefits at the end of the year $ 83 $ 60 $ 74 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional value of outstanding foreign currency forward exchange contracts | The following table shows the total notional value of the Company's outstanding foreign currency forward exchange contracts as of June 28, 2019 . All these foreign currency forward contracts mature within 12 months. As of June 28, 2019 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Singapore Dollar $ 60 $ 40 Chinese Renminbi 79 20 British Pound Sterling 6 12 $ 145 $ 72 The following table shows the total notional value of the Company's outstanding foreign currency forward exchange contracts as of June 29, 2018. As of June 29, 2018 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Japanese Yen (a) $ 66 $ 1,310 _____________________________________________________ (a) Pertains to our investment in TMHC. |
Schedule of gross fair value of derivative instruments | The following table shows the Company's derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheet as of June 28, 2019 : As of June 28, 2019 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 1 Accrued expenses (1 ) Total return swap Other current assets — Accrued expenses — Total derivatives $ 1 $ (1 ) The following table shows the Company's derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheet as of as of June 29, 2018 : As of June 29, 2018 Derivative Assets Derivative Liabilities (Dollars in millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Other current assets $ — Accrued expenses $ — Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets 10 Accrued expenses — Total return swap Other current assets — Accrued expenses — Total derivatives $ 10 $ — |
Schedule of the effect of derivative instruments on Other comprehensive income (loss) OCI and the Consolidated Statement of Operations | The following table shows the effect of the Company's derivative instruments on the Consolidated Statements of Comprehensive Income and Consolidated Statement of Operations for the fiscal year ended June 28, 2019 : Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivatives Amount of Gain/(Loss) Recognized in Income on Derivatives Foreign currency forward exchange contracts Other, net $ 20 Total return swap Operating expenses $ 3 The following tables show the effect of the Company's derivative instruments on the Consolidated Statement of Operations for the fiscal year ended June 29, 2018 : Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivatives Amount of Gain/(Loss) Recognized in Income on Derivatives Foreign currency forward exchange contracts Other, net $ 10 Total return swap Operating expenses $ 6 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | June 29, 2018 : Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Money market funds $ 620 $ — $ — $ 620 Time deposits and certificates of deposit — 392 — 392 Total cash equivalents 620 392 — 1,012 Restricted cash and investments: Money market funds 1 — — 1 Time deposits and certificates of deposit — 3 — 3 Derivative assets — 10 — 10 Total assets $ 621 $ 405 $ — $ 1,026 Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Cash and cash equivalents $ 620 $ 392 $ — $ 1,012 Other current assets 1 13 — 14 Total assets $ 621 $ 405 $ — — $ 1,026 The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis, excluding accrued interest components, as of June 28, 2019 : 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 $ 416 $ — $ — $ 416 Time deposits and certificates of deposit — 132 — 132 Total cash equivalents 416 132 — 548 Restricted cash and investments: Money market funds 1 — — 1 Time deposits and certificates of deposit — 1 — 1 Other debt securities — — 7 7 7 Derivative assets — 1 — 1 Total assets $ 417 $ 134 $ 7 $ 558 Liabilities: Derivative liabilities $ — $ 1 $ — $ 1 Total liabilities $ — $ 1 $ — $ 1 |
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 $ 416 $ 132 $ — $ 548 Other current assets 1 2 — 3 Other assets, net — — 7 7 Total assets $ 417 $ 134 $ 7 $ 558 Liabilities: Accrued expenses $ — $ 1 $ — $ 1 Total liabilities $ — $ 1 $ — $ 1 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 Company's debt is carried at amortized cost. The fair value of the Company's debt is derived using the closing price of the same debt instruments as of the date of valuation, which takes into account the yield curve, interest rates and other observable inputs. Accordingly, these fair value measurements are categorized as Level 2. The following table presents the fair value and amortized cost of the Company's debt in order of maturity: June 28, 2019 June 29, 2018 (Dollars in millions) Carrying Estimated Carrying Estimated 3.75% Senior Notes due November 2018 $ — $ — $ 499 $ 501 4.250% Senior Notes due March 2022 749 763 749 743 4.75% Senior Notes due June 2023 941 973 951 942 4.875% Senior Notes due March 2024 498 514 497 489 4.75% Senior Notes due January 2025 920 929 975 936 4.875% Senior Notes due June 2027 689 688 695 650 5.75% Senior Notes due December 2034 489 482 489 441 $ 4,286 $ 4,349 $ 4,855 $ 4,702 Less: debt issuance costs (33 ) — (36 ) — Long-term debt, net of debt issuance costs $ 4,253 $ 4,349 $ 4,819 $ 4,702 Less: current portion of long-term debt, net of debt issuance costs — — (499 ) (501 ) Long-term debt, less current portion $ 4,253 $ 4,349 $ 4,320 $ 4,201 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Equity [Abstract] | |
Schedule of Share Repurchases | The following table sets forth information with respect to repurchases of the Company's ordinary shares during fiscal years 2019 , 2018 and 2017 : (In millions) Number of Dollar Value Cumulative repurchased through July 1, 2016 328 $ 9,631 Repurchased in fiscal year 2017 (a) 13 487 Cumulative repurchased through June 30, 2017 341 10,118 Repurchased in fiscal year 2018 (a) 11 384 Cumulative repurchased through June 29, 2018 352 10,502 Repurchased in fiscal year 2019 (a) 22 997 Cumulative repurchased through June 28, 2019 374 $ 11,499 ___________________________________________________ (a) For fiscal years 2019, 2018 and 2017, includes net share settlements of $31 million , $23 million , and $27 million for 1 million , 1 million and 1 million shares in connection with tax withholding related to vesting of restricted stock units, respectively. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted-average assumptions used to determine the fair value | The fair value of the Company's shares related to options and RSU granted to employees, shares issued from the ESPP and PSUs subject to TSR/ROIC or AEPS conditions for fiscal years 2019 , 2018 and 2017 were estimated using the following assumptions: Fiscal Years 2019 2018 2017 Options Expected term (in years) 4.2 4.2 4.2 Volatility 39 - 40% 38 - 42% 38 - 42% Weighted-average volatility 39 % 40 % 39 % Expected dividend rate 4.6 - 5.0% 3.8 - 7.4% 4.9 - 6.4% Weighted-average expected dividend rate 4.7 % 6.8 % 6.3 % Risk-free interest rate 2.5 - 2.8% 1.5 - 2.7% 1.1 - 1.8% Weighted-average fair value $ 11.49 $ 6.56 $ 6.83 RSU Expected term (in years) 4.2 4.2 4.2 Expected dividend rate 4.1 - 6.4% 3.5 - 7.4% 4.6 - 7.7% Weighted-average expected dividend rate 4.68 % 7.11 % 6.4 % Weighted-average fair value $ 44.37 $ 26.69 $ 30.85 ESPP Expected term (in years) 0.5 0.5 0.5 Volatility 34 - 42% 37 - 38% 36 - 49% Weighted-average volatility 38 % 37 % 43 % Expected dividend rate 4.8 - 5.6% 4.6 - 7.6% 5.6 - 7.8% Weighted-average expected dividend rate 5.2 % 6.5 % 6.8 % Risk-free interest rate 2.2 - 2.4% 1.1 - 1.6% 0.4 - 0.6% Weighted-average fair value $ 12.18 $ 10.10 $ 9.78 PSUs subject to market condition Expected term (in years) 3.0 3.0 3.0 Volatility 46 % 45 % 41 - 42% Weighted-average volatility 46 % 45 % 41 % Expected dividend rate 5.0 % 8.1 % 6.3 - 7.0% Weighted-average expected dividend rate 5.0 % 8.1 % 7.0 % Risk-free interest rate 2.8 % 1.4 % 0.9 - 1.3% Weighted-average fair value $ 46.38 $ 25.90 $ 32.41 PSUs subject to an AEPS condition Expected term (in years) 4.2 4.2 4.2 Expected dividend rate 4.6 - 5.0% 5.8 - 7.2% 5.9 - 6.4% Weighted-average expected dividend rate 4.7 % 7.0 % 6.2 % Weighted-average fair value $ 43.92 $ 27.10 $ 31.61 |
Stock option activity | The Company issues new ordinary shares upon exercise of stock options. The following is a summary of option activities: Options Number of Weighted- Weighted- Aggregate (In millions) (In years) (Dollars in millions) Outstanding at June 29, 2018 4.0 $ 39.00 5.0 $72 Granted 0.4 $ 48.99 Exercised (0.4 ) $ 33.55 Forfeitures (0.5 ) $ 35.71 Expirations — $ — Outstanding at June 28, 2019 3.5 $ 41.04 4.2 $29 Vested and expected to vest at June 28, 2019 3.4 $ 41.06 4.2 $29 Exercisable at June 28, 2019 2.1 $ 42.11 3.6 $16 |
Nonvested share activity | The following is a summary of nonvested award activities which do not contain a performance condition: Nonvested Awards Number of Weighted- (In millions) Nonvested at June 29, 2018 5.2 $ 30.74 Granted 2.5 $ 44.37 Forfeitures (0.6 ) $ 33.45 Vested (1.7 ) $ 32.72 Nonvested at June 28, 2019 5.4 $ 36.01 |
Performance award activity | The following is a summary of nonvested award activities which contain a performance condition: Performance Awards Number of Weighted- (In millions) Performance units at June 29, 2018 1.2 $ 33.34 Granted 0.5 $ 45.74 Forfeitures (0.4 ) $ 27.11 Vested (0.3 ) $ 43.85 Performance units at June 28, 2019 1.0 $ 43.81 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted net income (loss) per share | Basic earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period and the number of additional shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options, unvested restricted stock units and performance-based share units and shares to be purchased under the ESPP. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in fair market value of the Company’s share price can result in a greater dilutive effect from potentially dilutive securities. The following table sets forth the computation of basic and diluted net income per share attributable to the shareholders of the Company: Fiscal Years Ended (In millions, except per share data) June 28, June 29, June 30, Numerator: Net income $ 2,012 $ 1,182 $ 772 Number of shares used in per share calculations: Total shares for purposes of calculating basic net income per share 282 288 296 Weighted-average effect of dilutive securities: Employee equity award plans 3 4 3 Total shares for purposes of calculating diluted net income per share 285 292 299 Net income per share Basic $ 7.13 $ 4.10 $ 2.61 Diluted $ 7.06 $ 4.05 $ 2.58 |
Schedule of potential shares excluded from the computation of diluted net income (loss) per share | The following potential shares were excluded from the computation of diluted net income per share as their effect would have been anti-dilutive: Fiscal Years Ended (In millions) June 28, June 29, June 30, Employee equity award plans — 1 1 |
Business Segment and Geograph_2
Business Segment and Geographic Information (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Segment Reporting [Abstract] | |
Summary of Operations by Geographic Area | Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, Revenue from external customers (a) : Singapore $ 5,085 $ 5,445 $ 5,070 United States 3,310 3,719 3,535 The Netherlands 1,630 1,598 1,501 Other 365 422 665 Consolidated $ 10,390 $ 11,184 $ 10,771 Long-lived assets: Thailand $ 558 $ 426 $ 414 Singapore 556 600 570 United States 523 565 643 China 62 45 58 Other 224 212 248 Consolidated $ 1,923 $ 1,848 $ 1,933 ___________________________________ (a) Revenue is attributed to countries based on the bill from location. |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Commitments Disclosure [Abstract] | |
Future Minimum Lease Payments for Operating Leases | Future minimum lease payments for operating leases (including accrued lease payments relating to restructuring plans) with initial or remaining terms of one year or more were as follows at June 28, 2019 (lease payments are shown net of sublease income): Fiscal Years Ending Operating Leases (Dollars in millions) 2020 $ 20 2021 17 2022 9 2023 8 2024 5 Thereafter 66 Total $ 125 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Jun. 28, 2019 | |
Guarantees [Abstract] | |
Schedule of Product Warranty Liability | Changes in the Company's product warranty liability during the fiscal years ended June 28, 2019 , June 29, 2018 and June 30, 2017 were as follows: Fiscal Years Ended (Dollars in millions) June 28, June 29, June 30, Balance, beginning of period $ 237 $ 233 $ 206 Warranties issued 112 147 131 Repairs and replacements (99 ) (106 ) (114 ) Changes in liability for pre-existing warranties, including expirations (55 ) (37 ) 10 Balance, end of period $ 195 $ 237 $ 233 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Jul. 03, 2026 | Jun. 29, 2020 | Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 29, 2019 | |
Schedule of Fiscal Years [Line Items] | ||||||
Fiscal period duration | 365 days | 365 days | 365 days | |||
Advertising Expense | ||||||
Advertising costs | $ 22 | $ 28 | $ 16 | |||
Minimum [Member] | ||||||
Establishment of Warranty Accruals | ||||||
Product warranty period term (in years) | 1 year | |||||
Maximum [Member] | ||||||
Establishment of Warranty Accruals | ||||||
Product warranty period term (in years) | 5 years | |||||
Accounts Receivable [Member] | ||||||
Concentration of Credit Risk | ||||||
Percentage of consolidated revenue (as a percent) | 10.00% | |||||
Scenario, Forecast [Member] | ||||||
Schedule of Fiscal Years [Line Items] | ||||||
Fiscal period duration | 371 days | 371 days | ||||
Accounting Standards Update 2016-02 [Member] | Scenario, Forecast [Member] | ||||||
Assets and Liabilities, Lease | ||||||
Operating lease, ROU asset | $ 114 | |||||
Operating lease liability | $ 74 |
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 | Jun. 28, 2019 | Jun. 30, 2018 | Jun. 29, 2018 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 989 | $ 1,193 | $ 1,184 |
Inventories | 970 | 1,044 | 1,053 |
Accrued expenses | 552 | 564 | 598 |
Accumulated deficit | $ (4,349) | $ (4,662) | (4,696) |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [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 | Jun. 28, 2019 | Jun. 29, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 557 | $ 1,016 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 557 | 1,016 |
Money market funds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 417 | 621 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 417 | 621 |
Time deposits and certificates of deposit [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 133 | 395 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 133 | 395 |
Cash and Cash Equivalents [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 548 | 1,012 |
Other Current Assets [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 2 | $ 4 |
Other Assets [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 7 | |
Other Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7 | |
Unrealized Gain/(Loss) | 0 | |
Fair Value | $ 7 |
Balance Sheet Information (Narr
Balance Sheet Information (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | May 31, 2018 | Jul. 01, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Depreciation Expense | $ 464,000,000 | $ 487,000,000 | $ 581,000,000 | ||
Capitalized Interest | 3,000,000 | 1,000,000 | 4,000,000 | ||
Impairment of assets | 3,000,000 | 0 | 42,000,000 | ||
Property, Equipment and Leasehold Improvements, net | |||||
Restricted cash and cash equivalents, current | 31,000,000 | 4,000,000 | 4,000,000 | $ 7,000,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | |||
impairment and accelerated depreciation of long-lived assets | 7,000,000 | 72,000,000 | |||
Available-for-sale Securities, Cost Basis of Other-than-temporarily Imparied Securities | 0 | ||||
Other than temporary impairment losses, investments, available-for-sale securities | 0 | ||||
Cost of revenue [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
impairment and accelerated depreciation of long-lived assets | 1,000,000 | ||||
Product development [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
impairment and accelerated depreciation of long-lived assets | 4,000,000 | ||||
Marketing and administrative [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
impairment and accelerated depreciation of long-lived assets | 2,000,000 | ||||
Land and Building [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
impairment and accelerated depreciation of long-lived assets | $ 35,000,000 | ||||
K.K. Pangea [Member] | Preferred Non-Convertible Stock [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
Non-convertible preferred stock | $ 1,300,000,000 | ||||
PIK interest income | 61,000,000 | $ 5,000,000 | |||
Impairment loss | 0 | ||||
Available-for-sale, Debt Securities [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
Restricted cash and cash equivalents, current | 2,000,000 | ||||
Preferred Non-Convertible Stock [Member] | |||||
Property, Equipment and Leasehold Improvements, net | |||||
Proceeds from redemption of debt security | $ 1,300,000,000 |
Balance Sheet Information (Fair
Balance Sheet Information (Fair value and amortized cost of available-for-sale securities by contractual maturity) (Details) - USD ($) $ in Millions | Jun. 28, 2019 | Jun. 29, 2018 |
Amortized Cost | ||
Amortized cost, due in less than 1 year | $ 550 | |
Amortized cost, due in 1 to 5 years | 3 | |
Amortized cost, due in 5 to 10 years | 0 | |
Amortized cost, thereafter | 4 | |
Amortized Cost | 557 | $ 1,016 |
Fair Value | ||
Fair value, due in less than 1 year | 550 | |
Fair value, due in 1 to 5 years | 3 | |
Fair value, due in 5 to 10 years | 0 | |
Fair value, thereafter | 4 | |
Fair value, Total | $ 557 | $ 1,016 |
Balance Sheet Information (Cash
Balance Sheet Information (Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Millions | Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||||
Cash and cash equivalents | $ 2,220 | $ 1,853 | $ 2,539 | $ 1,125 |
Restricted cash included in Other current assets | 31 | 4 | 4 | 7 |
Total cash, cash equivalents, and restricted cash shown in the Statements of Cash Flows | $ 2,251 | $ 1,857 | $ 2,543 | $ 1,132 |
Balance Sheet Information (Acco
Balance Sheet Information (Accounts Receivable, net) (Details) - USD ($) $ in Millions | Jun. 28, 2019 | Jun. 30, 2018 | Jun. 29, 2018 |
Accounts Receivable, Net [Abstract] | |||
Accounts Receivable, Gross, Current | $ 993 | $ 1,188 | |
Allowance for Doubtful Accounts Receivable, Current | (4) | (4) | |
Accounts receivable, net | $ 989 | $ 1,193 | $ 1,184 |
Balance Sheet Information (Allo
Balance Sheet Information (Allowance for Doubtful Accounts Rollforward) (Details) - Allowance for doubtful accounts [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 4 | $ 5 | $ 9 | |
Charges to Operations | 0 | 0 | (4) | |
Deductions | [1] | 0 | (1) | 0 |
Balance at End of Period | $ 4 | $ 4 | $ 5 | |
[1] | (a) Uncollectible accounts written off, net of recoveries. |
Balance Sheet Information (Inve
Balance Sheet Information (Inventories) (Details) - USD ($) $ in Millions | Jun. 28, 2019 | Jun. 30, 2018 | Jun. 29, 2018 |
Inventory, Net [Abstract] | |||
Raw materials and components | $ 336 | $ 329 | |
Work-in-process | 217 | 347 | |
Finished goods | 417 | 377 | |
Total Inventory | $ 970 | $ 1,044 | $ 1,053 |
Balance Sheet Information (Prop
Balance Sheet Information (Property, Equipment and Leasehold Improvements, net) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 28, 2019 | Jun. 29, 2018 | |
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment and leasehold improvements | $ 9,835 | $ 9,525 |
Less: accumulated depreciation and amortization | (7,966) | (7,733) |
Total property, equipment and leasehold improvements, net | 1,869 | 1,792 |
Land [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment and leasehold improvements | 48 | 55 |
Equipment [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment and leasehold improvements | $ 7,726 | 7,472 |
Equipment [Member] | Maximum [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment, and leasehold improvements, useful life | 5 years | |
Equipment [Member] | Minimum [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment, and leasehold improvements, useful life | 3 years | |
Buildings and leasehold improvements [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment and leasehold improvements | $ 1,795 | 1,805 |
Buildings and leasehold improvements [Member] | Maximum [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment, and leasehold improvements, useful life | 30 years | |
Construction in progress [Member] | ||
Property, Equipment and Leasehold Improvements, net | ||
Property, equipment and leasehold improvements | $ 266 | $ 193 |
Balance Sheet Information (Accr
Balance Sheet Information (Accrued Expenses) (Details) - USD ($) $ in Millions | Jun. 28, 2019 | Jun. 30, 2018 | Jun. 29, 2018 |
Payables and Accruals [Abstract] | |||
Dividends Payable, Current | $ 170 | $ 181 | |
Other accrued expenses | 382 | 417 | |
Accrued expenses, total | $ 552 | $ 564 | $ 598 |
Balance Sheet Information (Accu
Balance Sheet Information (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Total Seagate Technology plc Shareholders' Equity, Starting Balance | $ 1,665 | $ 1,364 | $ 1,593 |
Other comprehensive income (loss) | (18) | 1 | 8 |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | 2,162 | 1,665 | 1,364 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Total Seagate Technology plc Shareholders' Equity, Starting Balance | 0 | 0 | |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | 0 | 0 | 0 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Total Seagate Technology plc Shareholders' Equity, Starting Balance | 0 | 0 | |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | 0 | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | |||
Total Seagate Technology plc Shareholders' Equity, Starting Balance | (4) | (5) | |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | (20) | (4) | (5) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Total Seagate Technology plc Shareholders' Equity, Starting Balance | (12) | (12) | |
Other comprehensive income (loss) before reclassifications | (2) | 0 | |
Amounts reclassified from AOCI | 0 | 0 | |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | (14) | (12) | (12) |
AOCI Attributable to Parent [Member] | |||
Total Seagate Technology plc Shareholders' Equity, Starting Balance | (16) | (17) | (25) |
Other comprehensive income (loss) before reclassifications | (18) | 1 | |
Amounts reclassified from AOCI | 0 | 0 | |
Other comprehensive income (loss) | (18) | 1 | |
Total Seagate Technology plc Shareholders' Equity, Ending Balance | $ (34) | $ (16) | $ (17) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of Intangible Assets | $ 77 | $ 111 | $ 168 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 10,390 | $ 11,184 | $ 10,771 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 3,310 | 3,719 | 3,531 |
EMEA | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,965 | 1,983 | 2,119 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5,115 | 5,482 | 5,121 |
OEMs | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 7,261 | 7,863 | 7,478 |
Distributors | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,780 | 1,906 | 1,866 |
Retailers | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 1,349 | $ 1,415 | $ 1,427 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Changes in the carrying amount of goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 28, 2019 | Jun. 29, 2018 | |
Goodwill [Roll Forward] | ||
Balance at the beginning of the period | $ 1,237 | $ 1,238 |
Goodwill acquired | 0 | 0 |
Goodwill, Written off Related to Sale of Business Unit | 0 | (1) |
Foreign currency translation effect | 0 | 0 |
Balance at the end of the period | $ 1,237 | $ 1,237 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Carrying value of intangible assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 28, 2019 | Jun. 29, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 316 | $ 407 |
Accumulated Amortization | (205) | (219) |
Net Carrying Amount | $ 111 | $ 188 |
Weighted Average Remaining Useful Life (in years) | 2 years 6 months | 2 years 10 months 24 days |
Technology-Based Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 201 | $ 256 |
Accumulated Amortization | (143) | (145) |
Net Carrying Amount | $ 58 | $ 111 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 1 year 10 months 24 days | 2 years 6 months |
Customer relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 71 | $ 89 |
Accumulated Amortization | (38) | (42) |
Net Carrying Amount | $ 33 | $ 47 |
Weighted Average Remaining Useful Life (in years) | 3 years 3 months | 4 years |
Trade names [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 3 | $ 17 |
Accumulated Amortization | (2) | (13) |
Net Carrying Amount | $ 1 | $ 4 |
Weighted Average Remaining Useful Life (in years) | 1 year 2 months | 1 year 3 months 18 days |
Other intangible assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 41 | $ 45 |
Accumulated Amortization | (22) | (19) |
Net Carrying Amount | $ 19 | $ 26 |
Weighted Average Remaining Useful Life (in years) | 2 years 10 months 24 days | 3 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Expected amortization expense for acquisition-related intangible assets) (Details) - USD ($) $ in Millions | Jun. 28, 2019 | Jun. 29, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2019 | $ 54 | |
2020 | 29 | |
2021 | 20 | |
2022 | 8 | |
2023 | 0 | |
Thereafter | 0 | |
Total | $ 111 | $ 188 |
Restructuring and Exit Costs (N
Restructuring and Exit Costs (Narrative) (Details) $ in Millions | Dec. 08, 2017 | Jul. 25, 2017 | Mar. 09, 2017 | Jul. 11, 2016 | Mar. 29, 2019USD ($) | Jun. 28, 2019USD ($) | Jun. 29, 2018USD ($) | Jun. 30, 2017USD ($) | Jul. 01, 2016USD ($) |
Restructuring Reserve [Line Items] | |||||||||
Restructuring and other, net | $ (22) | $ 89 | $ 178 | ||||||
Impairment of assets | 3 | 0 | 42 | ||||||
Total expected costs to be incurred as of June 28, 2019 | 1 | ||||||||
Restructuring accrual | 30 | 42 | 43 | $ 63 | |||||
Restructuring accrual, current | 30 | ||||||||
Gain (loss) on assets held for sale | 78 | 25 | |||||||
December 2017 Plan [Member] | |||||||||
Restructuring Reserve [Line Items] | |||||||||
Restructuring and related cost, number of positions eliminated | 500 | ||||||||
July 2017 Plan [Member] | |||||||||
Restructuring Reserve [Line Items] | |||||||||
Restructuring and related cost, number of positions eliminated | 600 | ||||||||
March 2017 Plan [Member] | |||||||||
Restructuring Reserve [Line Items] | |||||||||
Restructuring and related cost, number of positions eliminated | 300 | ||||||||
July 2016 Plan [Member] | |||||||||
Restructuring Reserve [Line Items] | |||||||||
Restructuring and related cost, number of positions eliminated | 6,500 | ||||||||
Employee Severance [Member] | December 2017 Plan [Member] | |||||||||
Restructuring Reserve [Line Items] | |||||||||
Restructuring and other, net | 0 | 28 | 0 | ||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | ||||||||
Restructuring accrual | 0 | 5 | 0 | ||||||
Employee Severance [Member] | July 2017 Plan [Member] | |||||||||
Restructuring Reserve [Line Items] | |||||||||
Restructuring and other, net | 0 | 38 | 0 | ||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | ||||||||
Restructuring accrual | 0 | 0 | 0 | ||||||
Employee Severance [Member] | March 2017 Plan [Member] | |||||||||
Restructuring Reserve [Line Items] | |||||||||
Restructuring and other, net | 0 | 0 | 28 | ||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | ||||||||
Restructuring accrual | 0 | 1 | 0 | 0 | |||||
Employee Severance [Member] | July 2016 Plan [Member] | |||||||||
Restructuring Reserve [Line Items] | |||||||||
Restructuring and other, net | $ 0 | 1 | 72 | ||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | ||||||||
Restructuring accrual | $ 0 | 2 | $ 22 | $ 0 | |||||
Other Noncurrent Liabilities [Member] | |||||||||
Restructuring Reserve [Line Items] | |||||||||
Restructuring accrual, noncurrent | 14 | 16 | |||||||
Accrued Liabilities [Member] | |||||||||
Restructuring Reserve [Line Items] | |||||||||
Restructuring accrual, current | $ 16 | $ 26 |
Restructuring and Exit Costs (S
Restructuring and Exit Costs (Schedule of Restructuring Reserve by Type of Cost) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | 19 Months Ended | 23 Months Ended | 28 Months Ended | 36 Months Ended | ||
Mar. 29, 2019 | Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | Jun. 28, 2019 | Jun. 28, 2019 | Jun. 28, 2019 | Jun. 28, 2019 | |
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring Accrual, beginning balance | $ 42 | $ 42 | $ 43 | $ 63 | ||||
Restructuring charges | (22) | 89 | 178 | |||||
Cash payments | (65) | (115) | (198) | |||||
Adjustments | (1) | 9 | 11 | |||||
Restructuring Accrual, ending balance | 30 | 42 | 43 | $ 30 | $ 30 | $ 30 | $ 30 | |
Total costs incurred to date as of June 28, 2019 | 575 | |||||||
Total expected costs to be incurred as of June 28, 2019 | 1 | 1 | 1 | 1 | 1 | |||
Workforce Restructuring Charges [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring charges | 54 | 105 | 167 | |||||
December 2017 Plan [Member] | Employee Severance [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring Accrual, beginning balance | 5 | 5 | 0 | |||||
Restructuring charges | 0 | 28 | 0 | |||||
Cash payments | (5) | (21) | 0 | |||||
Adjustments | 0 | (2) | 0 | |||||
Restructuring Accrual, ending balance | 0 | 5 | 0 | 0 | 0 | 0 | ||
Total costs incurred to date as of June 28, 2019 | 26 | |||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | 0 | 0 | 0 | 0 | |||
December 2017 Plan [Member] | Facilities and Other Exit Costs [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring Accrual, beginning balance | 4 | 4 | 0 | |||||
Restructuring charges | 3 | 6 | 0 | |||||
Cash payments | (5) | (2) | 0 | |||||
Adjustments | (1) | 0 | 0 | |||||
Restructuring Accrual, ending balance | 1 | 4 | 1 | 1 | 1 | 1 | ||
Total costs incurred to date as of June 28, 2019 | 8 | |||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | 0 | 0 | 0 | 0 | |||
July 2017 Plan [Member] | Employee Severance [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring Accrual, beginning balance | 0 | 0 | 0 | |||||
Restructuring charges | 0 | 38 | 0 | |||||
Cash payments | 0 | (37) | 0 | |||||
Adjustments | 0 | (1) | 0 | |||||
Restructuring Accrual, ending balance | 0 | 0 | 0 | 0 | 0 | 0 | ||
Total costs incurred to date as of June 28, 2019 | 37 | |||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | 0 | 0 | 0 | 0 | |||
July 2017 Plan [Member] | Facilities and Other Exit Costs [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring Accrual, beginning balance | 1 | 1 | 0 | |||||
Restructuring charges | 0 | 4 | 0 | |||||
Cash payments | 0 | (3) | 0 | |||||
Adjustments | (1) | 0 | 0 | |||||
Restructuring Accrual, ending balance | 0 | 1 | 0 | 0 | 0 | 0 | ||
Total costs incurred to date as of June 28, 2019 | 3 | |||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | 0 | 0 | 0 | 0 | |||
March 2017 Plan [Member] | Employee Severance [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring Accrual, beginning balance | 1 | 1 | 0 | 0 | ||||
Restructuring charges | 0 | 0 | 28 | |||||
Cash payments | (1) | (1) | (29) | |||||
Adjustments | 0 | 2 | 1 | |||||
Restructuring Accrual, ending balance | 0 | 1 | 0 | 0 | 0 | 0 | 0 | |
Total costs incurred to date as of June 28, 2019 | 31 | |||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | 0 | 0 | 0 | 0 | |||
March 2017 Plan [Member] | Facilities and Other Exit Costs [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring Accrual, beginning balance | 0 | 0 | 0 | 0 | ||||
Restructuring charges | 0 | 0 | 3 | |||||
Cash payments | 0 | 0 | (3) | |||||
Adjustments | 0 | 0 | 0 | |||||
Restructuring Accrual, ending balance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
Total costs incurred to date as of June 28, 2019 | 3 | |||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | 0 | 0 | 0 | 0 | |||
July 2016 Plan [Member] | Employee Severance [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring Accrual, beginning balance | 22 | 0 | ||||||
Restructuring charges | 0 | 1 | 72 | |||||
Cash payments | (1) | (23) | (57) | |||||
Adjustments | (1) | 2 | 7 | |||||
Restructuring Accrual, ending balance | 0 | 2 | 22 | 2 | 2 | 2 | 2 | |
Total costs incurred to date as of June 28, 2019 | 81 | |||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | 0 | 0 | 0 | 0 | |||
July 2016 Plan [Member] | Facilities and Other Exit Costs [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring Accrual, beginning balance | 2 | 0 | ||||||
Restructuring charges | 6 | 15 | 20 | |||||
Cash payments | (6) | (16) | (18) | |||||
Adjustments | 0 | (1) | 0 | |||||
Restructuring Accrual, ending balance | 0 | 0 | 2 | 0 | 0 | 0 | 0 | |
Total costs incurred to date as of June 28, 2019 | 40 | |||||||
Total expected costs to be incurred as of June 28, 2019 | 0 | 0 | 0 | 0 | 0 | |||
Other Plans [Member] | Employee Severance [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring Accrual, beginning balance | 11 | 11 | 6 | 50 | ||||
Restructuring charges | 41 | 13 | 31 | |||||
Cash payments | (41) | (9) | (74) | |||||
Adjustments | 2 | 1 | (1) | |||||
Restructuring Accrual, ending balance | 13 | 11 | 6 | 13 | 13 | 13 | 13 | |
Total costs incurred to date as of June 28, 2019 | 283 | |||||||
Total expected costs to be incurred as of June 28, 2019 | 1 | 1 | 1 | 1 | 1 | |||
Other Plans [Member] | Facilities and Other Exit Costs [Member] | ||||||||
Restructuring Reserve [Roll Forward] | ||||||||
Restructuring Accrual, beginning balance | $ 18 | 18 | 13 | 13 | ||||
Restructuring charges | 4 | 0 | 13 | |||||
Cash payments | (6) | (3) | (17) | |||||
Adjustments | 0 | 8 | 4 | |||||
Restructuring Accrual, ending balance | 16 | $ 18 | $ 13 | 16 | 16 | 16 | 16 | |
Total costs incurred to date as of June 28, 2019 | 63 | |||||||
Total expected costs to be incurred as of June 28, 2019 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Nov. 15, 2018 | Feb. 03, 2017 | May 14, 2015 | Dec. 02, 2014 | May 28, 2014 | May 22, 2013 | Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | May 28, 2019 | Feb. 20, 2019 | Jan. 15, 2015 | Nov. 05, 2013 | May 18, 2011 |
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 700,000,000 | ||||||||||||||
Repayments of long-term debt | $ 819,000,000 | $ 214,000,000 | $ 316,000,000 | ||||||||||||
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% | 3.75% | 3.75% | ||||||||||||
Debt instrument, repurchase amount | $ 211,000,000 | $ 90,000,000 | |||||||||||||
Repayments of long-term debt | $ 499,000,000 | ||||||||||||||
Senior Notes 7.00 Percent due November 2021 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 600,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 7.00% | ||||||||||||||
Extinguishment of debt, principal amount | 158,000,000 | ||||||||||||||
Loss on redemption of debt | 5,000,000 | ||||||||||||||
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% | ||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||||||||||
Senior Notes 4.75 Percent Due June 2023 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 4.75% | 4.75% | 4.75% | ||||||||||||
Redemption price as percentage of principal amount (percent) | 100.00% | ||||||||||||||
Basis spread on variable rate (basis points) | 50.00% | ||||||||||||||
Debt instrument, repurchase amount | $ 10,000,000 | $ 39,000,000 | |||||||||||||
Senior Notes 4.75 Percent Due January 2025 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 4.75% | 4.75% | 4.75% | ||||||||||||
Redemption price as percentage of principal amount (percent) | 100.00% | ||||||||||||||
Basis spread on variable rate (basis points) | 50.00% | ||||||||||||||
Debt instrument, repurchase amount | $ 55,000,000 | $ 20,000,000 | |||||||||||||
Senior Note 4.875 percent Due June 2027 [Domain] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 700,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 4.875% | 4.875% | 4.875% | ||||||||||||
Redemption price as percentage of principal amount (percent) | 100.00% | ||||||||||||||
Basis spread on variable rate (basis points) | 40.00% | ||||||||||||||
Debt instrument, repurchase amount | $ 6,000,000 | $ 4,000,000 | |||||||||||||
Gain (loss) on repurchase of debt instrument | $ 0 | ||||||||||||||
Senior note 5.75 percent due December 2034 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 500,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 5.75% | 5.75% | 5.75% | ||||||||||||
Redemption price as percentage of principal amount (percent) | 100.00% | ||||||||||||||
Basis spread on variable rate (basis points) | 50.00% | ||||||||||||||
Debt instrument, repurchase amount | $ 10,000,000 | ||||||||||||||
Gain (loss) on repurchase of debt instrument | $ 3,000,000 | ||||||||||||||
Senior Notes 4.875 Percent Due March 2024 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 500,000,000 | ||||||||||||||
Stated interest rate (as a percent) | 4.875% | 4.875% | 4.875% | ||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||||||||||
Other nonoperating income, net [Member] | Senior Notes 3.75 Percent due November 2018 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gain (loss) on repurchase of debt instrument | $ (4,000,000) | $ (3,000,000) | |||||||||||||
Other nonoperating income, net [Member] | Senior Notes 7.00 Percent due November 2021 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gain (loss) on repurchase of debt instrument | 0 | ||||||||||||||
Other nonoperating income, net [Member] | Senior Notes 4.75 Percent Due June 2023 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gain (loss) on repurchase of debt instrument | $ 0 | ||||||||||||||
Other nonoperating income, net [Member] | Senior Notes 4.75 Percent Due January 2025 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gain (loss) on repurchase of debt instrument | 1,000,000 | $ 1,000,000 | |||||||||||||
Treasury Rate [Member] | Senior Notes 4.25 Percent Due March 2022 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate (basis points) | 0.40% | ||||||||||||||
Treasury Rate [Member] | Senior Notes 4.875 Percent Due March 2024 [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Basis spread on variable rate (basis points) | 0.045% | ||||||||||||||
2019 Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,500,000,000 | $ 1,300,000,000 | |||||||||||||
Line of credit facility, accordion feature, increase limit | $ 100,000,000 | ||||||||||||||
Line of credit facility, percentage of most favored nation protection | 0.50% | ||||||||||||||
Proceeds from Lines of Credit | $ 0 | ||||||||||||||
2019 Revolving Credit Facility [Member] | Line of Credit [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Sub-limit for issuance of letters of credit under revolving credit facility | 75,000,000 | ||||||||||||||
2019 Revolving Credit Facility [Member] | Bridge Loan [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility, capacity available for specific purpose other than for trade purchases | 50,000,000 | ||||||||||||||
Minimum [Member] | 2019 Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility, accordion feature, increase limit | $ 25,000,000 |
Debt (Future principal payments
Debt (Future principal payments on long-term debt) (Details) $ in Millions | Jun. 28, 2019USD ($) |
Debt Disclosure [Abstract] | |
2019 | $ 0 |
2020 | 0 |
2021 | 750 |
2022 | 941 |
2023 | 500 |
Thereafter | 2,100 |
Total future principal payments on short-term and long-term debt | $ 4,291 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Total net deferred tax assets | $ 1,094 | $ 410 | ||
Increase (decrease) in valuation allowance | (761) | |||
Operating loss carryforwards, subject to expiration | $ 42 | |||
Domestic federal statutory rate (as a percent) | 25.00% | 25.00% | 25.00% | |
Income tax holiday, aggregate dollar amount | $ 194 | $ 269 | $ 163 | |
Income tax holiday tax incentive income tax benefits per share (in dollars per share) | $ 0.68 | $ 0.92 | $ 0.54 | |
Deferred tax liability not recognized due to temporary difference, undistributed earnings of foreign subsidiaries | $ 2,300 | |||
Tax amount, if temporary difference were remitted to Ireland as a dividend | 575 | |||
Total gross unrecognized tax benefits excluding interest and penalties | 83 | $ 60 | $ 74 | $ 76 |
Unrecognized tax benefits, income tax penalties and interest expense | 2 | $ 1 | ||
Accrued interest and penalties related to unrecognized tax benefits | 1 | $ 2 | ||
Minimum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Expected unrecognized tax benefits reduction | 1 | |||
U.S. Federal [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Net operating loss carryforwards | 3,100 | |||
Tax credit carryforwards | 533 | |||
NOL subject to annual limitation on use | 373 | |||
Tax credit carryforwards subject to annual limitation on use | 98 | |||
U.S. Federal [Member] | Minimum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Aggregate annual limitation on use of NOL and tax credit carryforwards pursuant to U.S. tax law | 1 | |||
U.S. Federal [Member] | Maximum [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Aggregate annual limitation on use of NOL and tax credit carryforwards pursuant to U.S. tax law | 45 | |||
State [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Net operating loss carryforwards | 1,800 | |||
Tax credit carryforwards | 143 | |||
Non-U.S. [Member] | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Net operating loss carryforwards | $ 43.5 |
Income Taxes (Income (Loss) Bef
Income Taxes (Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 275 | $ (29) | $ (22) |
Non-U.S. | 1,097 | 1,447 | 837 |
Income before income taxes | $ 1,372 | $ 1,418 | $ 815 |
Income Taxes (Schedule of Provi
Income Taxes (Schedule of Provision for (Benefit From) Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Current income tax expense: | |||
U.S. Federal | $ 0 | $ 0 | $ 0 |
U.S. State | 0 | 5 | 1 |
Non-U.S. | 45 | 38 | 39 |
Total Current | 45 | 43 | 40 |
Deferred income tax (benefit) expense: | |||
U.S. Federal | (690) | 201 | (5) |
U.S. State | 12 | 0 | 0 |
Non-U.S. | (7) | (8) | 8 |
Total Deferred | (690) | 193 | 3 |
Total Deferred | (685) | ||
(Benefit) provision for income taxes | $ (640) | $ 236 | $ 43 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 28, 2019 | Jun. 29, 2018 |
Deferred tax assets | ||
Accrued warranty | $ 46 | $ 55 |
Inventory carrying value adjustments | 34 | 30 |
Receivable allowances | 10 | 13 |
Accrued compensation and benefits | 53 | 64 |
Depreciation | 89 | 96 |
Restructuring accruals | 4 | 5 |
Other accruals and deferred items | 15 | 34 |
Net operating losses | 743 | 812 |
Tax credit carryforwards | 582 | 549 |
Other assets | 7 | 10 |
Gross: Deferred tax assets | 1,583 | 1,668 |
Less: Valuation allowance | 460 | 1,221 |
Net: Deferred tax assets | 1,123 | 447 |
Deferred tax liabilities | ||
Unremitted earnings of certain non-U.S. entities | 16 | 7 |
Acquisition-related items | (13) | (30) |
Net: Deferred tax liabilities | 29 | 37 |
Total net deferred tax assets | $ 1,094 | $ 410 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation Between Income at Statutory Rate and Effective Rate) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Provision at statutory rate | $ 343 | $ 355 | $ 204 |
Permanent differences | 3 | (2) | 19 |
Effect of U.S. corporate tax rate change | 0 | 524 | 0 |
Valuation allowance | (742) | (297) | 2 |
Non-U.S. losses with no tax benefits | 0 | 0 | 17 |
Earnings taxed at other than statutory rate | (234) | (317) | (185) |
Research credit | (38) | (25) | (14) |
Tax expense (benefit) related to intercompany transactions | 23 | 0 | (2) |
Other individually immaterial items | 5 | (2) | 2 |
(Benefit) provision for income taxes | $ (640) | $ 236 | $ 43 |
Income Taxes (Schedule of Gross
Income Taxes (Schedule of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Balance of unrecognized tax benefits at the beginning of the year | $ 60 | $ 74 | $ 76 |
Gross increase for tax positions of prior years | 22 | 2 | 2 |
Gross decrease for tax positions of prior years | (9) | (3) | (7) |
Gross increase for tax positions of current year | 16 | 7 | 16 |
Gross decrease for tax positions of current year | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Lapse of statutes of limitation | (6) | (20) | (13) |
Non-U.S. exchange gain | 0 | 0 | 0 |
Balance of unrecognized tax benefits at the end of the year | $ 83 | $ 60 | $ 74 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jun. 29, 2018 | Jun. 28, 2019 | |
Derivative Financial Instruments | ||
Notional value of total return swap | $ 0 | |
Unrealized gain (loss) on cash flow hedging instruments | $ 0 | |
Cash Flow Hedging [Member] | ||
Derivative Financial Instruments | ||
Gain on hedge designation cash flow hedge | $ 0 | |
Not Designated as Hedging Instrument [Member] | Foreign currency forward exchange contracts [Member] | ||
Derivative Financial Instruments | ||
Notional value of total return swap | 72,000,000 | |
Not Designated as Hedging Instrument [Member] | Total Return Swap [Member] | ||
Derivative Financial Instruments | ||
Notional value of total return swap | $ 117,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of notional value of outstanding foreign currency forward exchange contracts) (Details) - USD ($) | Jun. 28, 2019 | Jun. 29, 2018 |
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | $ 0 | |
Foreign currency forward exchange contracts [Member] | Derivatives designated as hedging instruments [Member] | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 145,000,000 | |
Foreign currency forward exchange contracts [Member] | Derivatives designated as hedging instruments [Member] | Singapore, Dollars | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 60,000,000 | |
Foreign currency forward exchange contracts [Member] | Derivatives designated as hedging instruments [Member] | China, Yuan Renminbi | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 79,000,000 | |
Foreign currency forward exchange contracts [Member] | Derivatives designated as hedging instruments [Member] | United Kingdom, Pounds | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 6,000,000 | |
Foreign currency forward exchange contracts [Member] | Derivatives designated as hedging instruments [Member] | Japanese Yen [Member] | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | $ 66,000,000 | |
Foreign currency forward exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 72,000,000 | |
Foreign currency forward exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Singapore, Dollars | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 40,000,000 | |
Foreign currency forward exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | China, Yuan Renminbi | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | 20,000,000 | |
Foreign currency forward exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | United Kingdom, Pounds | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | $ 12,000,000 | |
Foreign currency forward exchange contracts [Member] | Not Designated as Hedging Instrument [Member] | Japanese Yen [Member] | ||
Derivative Financial Instruments | ||
Notional value of outstanding foreign currency forward exchange contracts | $ 1,310,000,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Schedule of gross fair value of derivative instruments) (Details) - USD ($) $ in Millions | Jun. 28, 2019 | Jun. 29, 2018 |
Fair Values of Derivative Instruments | ||
Asset Derivatives, Other current assets | $ 1 | $ 10 |
Liability derivatives, Accrued expenses | (1) | 0 |
Derivatives designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member] | Other Current Assets [Member] | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives, Other current assets | 0 | 0 |
Derivatives designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member] | Accrued Expenses [Member] | ||
Fair Values of Derivative Instruments | ||
Liability derivatives, Accrued expenses | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Foreign currency forward exchange contracts [Member] | Other Current Assets [Member] | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives, Other current assets | 1 | 10 |
Not Designated as Hedging Instrument [Member] | Foreign currency forward exchange contracts [Member] | Accrued Expenses [Member] | ||
Fair Values of Derivative Instruments | ||
Liability derivatives, Accrued expenses | (1) | 0 |
Not Designated as Hedging Instrument [Member] | Total Return Swap [Member] | Other Current Assets [Member] | ||
Fair Values of Derivative Instruments | ||
Asset Derivatives, Other current assets | 0 | 0 |
Not Designated as Hedging Instrument [Member] | Total Return Swap [Member] | Accrued Expenses [Member] | ||
Fair Values of Derivative Instruments | ||
Liability derivatives, Accrued expenses | $ 0 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Schedule of the effect of derivative instruments on Other comprehensive income (loss) and the Consolidated Statement of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 28, 2019 | Jun. 29, 2018 | |
Other nonoperating income, net [Member] | Foreign currency forward exchange contracts [Member] | ||
Derivatives Instruments, Gain (Loss) | ||
Amount of Gain/(Loss) Recognized in Income on Derivatives | $ 20 | $ 10 |
Operating Expense [Member] | Total Return Swap [Member] | ||
Derivatives Instruments, Gain (Loss) | ||
Amount of Gain/(Loss) Recognized in Income on Derivatives | $ 3 | $ 6 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Mar. 29, 2019 | Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Assets and liabilities measured at fair value on a recurring basis | ||||
Cost Method Investments | $ 114,000,000 | $ 118,000,000 | ||
Impairment of assets | 3,000,000 | 0 | $ 42,000,000 | |
Gain (loss) on assets held for sale | 78,000,000 | 25,000,000 | ||
Nonrecurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other nonoperating income, net [Member] | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Cost-method Investments, Other-than-Temporary Impairment | 0 | 11,000,000 | 25,000,000 | |
Land and Building [Member] | Restructuring Charges [Member] | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Impairment of assets | $ 3,000,000 | 0 | ||
United States | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Gain (loss) on assets held for sale | 78,000,000 | |||
United States | Land and Building [Member] | Nonrecurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Impairment of assets | $ 35,000,000 | |||
Preferred Non-Convertible Stock [Member] | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Proceeds from redemption of debt security | 1,300,000,000 | |||
Reported Value Measurement [Member] | Other Current Assets [Member] | Land and Building [Member] | Nonrecurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets and liabilities measured at fair value on a recurring basis | ||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 23,000,000 | $ 26,000,000 |
Fair Value (Schedule of Fair Va
Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring basis [Member] - USD ($) $ in Millions | Jun. 28, 2019 | Jun. 29, 2018 |
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | $ 548 | $ 1,012 |
Cash and cash equivalents and short-term investments | 548 | |
Total assets | 558 | 1,026 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 1 | |
Derivative Financial Instruments, Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative asset | 1 | 10 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 416 | 620 |
Cash and cash equivalents and short-term investments | 416 | |
Total assets | 417 | 621 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Derivative Financial Instruments, Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative asset | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative Liability | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 132 | 392 |
Cash and cash equivalents and short-term investments | 132 | |
Total assets | 134 | 405 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 1 | |
Significant Other Observable Inputs (Level 2) [Member] | Derivative Financial Instruments, Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative asset | 1 | 10 |
Significant Other Observable Inputs (Level 2) [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative Liability | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Cash and cash equivalents and short-term investments | 0 | |
Total assets | 7 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Derivative Financial Instruments, Assets [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative asset | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative Liability | 0 | |
Money market funds [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 620 | |
Cash and cash equivalents and short-term investments | 416 | |
Included in Restricted cash and investments | 1 | 1 |
Money market funds [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 620 | |
Cash and cash equivalents and short-term investments | 416 | |
Included in Restricted cash and investments | 1 | 1 |
Money market funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | |
Cash and cash equivalents and short-term investments | 0 | |
Included in Restricted cash and investments | 0 | 0 |
Money market funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | |
Cash and cash equivalents and short-term investments | 0 | |
Included in Restricted cash and investments | 0 | 0 |
Time deposits and certificates of deposit [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 392 | |
Cash and cash equivalents and short-term investments | 132 | |
Included in Restricted cash and investments | 1 | 3 |
Time deposits and certificates of deposit [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | |
Cash and cash equivalents and short-term investments | 0 | |
Included in Restricted cash and investments | 0 | 0 |
Time deposits and certificates of deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 392 | |
Cash and cash equivalents and short-term investments | 132 | |
Included in Restricted cash and investments | 1 | 3 |
Time deposits and certificates of deposit [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | |
Cash and cash equivalents and short-term investments | 0 | |
Included in Restricted cash and investments | 0 | $ 0 |
Debt Securities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Included in Restricted cash and investments | 7 | |
Debt Securities [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Included in Restricted cash and investments | 0 | |
Debt Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Included in Restricted cash and investments | 0 | |
Debt Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Included in Restricted cash and investments | 7 | |
Estimate of Fair Value Measurement [Member] | Derivative Financial Instruments, Liabilities [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative Liability | 1 | |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative Liability | 0 | |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative Liability | 1 | |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative Liability | 0 | |
Reported Value Measurement [Member] | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative Liability | $ 1 |
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 ($) $ in Millions | Jun. 28, 2019 | Jun. 29, 2018 |
Assets: | ||
Cash and cash equivalents and short-term investments | $ 548 | |
Cash and cash equivalents | 548 | $ 1,012 |
Other current assets | 3 | |
Other assets, net | 7 | 14 |
Total assets | 558 | 1,026 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 1 | |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets: | ||
Cash and cash equivalents and short-term investments | 416 | |
Cash and cash equivalents | 416 | 620 |
Other current assets | 1 | |
Other assets, net | 0 | 1 |
Total assets | 417 | 621 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Cash and cash equivalents and short-term investments | 132 | |
Cash and cash equivalents | 132 | 392 |
Other current assets | 2 | |
Other assets, net | 0 | 13 |
Total assets | 134 | 405 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 1 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Cash and cash equivalents and short-term investments | 0 | |
Cash and cash equivalents | 0 | 0 |
Other current assets | 0 | |
Other assets, net | 7 | 0 |
Total assets | 7 | $ 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | |
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative Liability | 0 | |
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative Liability | 1 | |
Estimate of Fair Value Measurement [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative Liability | $ 0 |
Fair Value (Significant Unobser
Fair Value (Significant Unobservable Inputs (Level 3), Reconciliation) (Details) | Jun. 29, 2018USD ($) |
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation | |
Level 3 assets | $ 0 |
Fair Value (Schedule of Carryin
Fair Value (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Details) - USD ($) $ in Millions | Jun. 28, 2019 | 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 | $ (33) | $ (36) | ||||||
Long-term debt, less current portion | $ 4,253 | $ 4,320 | ||||||
Senior Notes 3.75 Percent due November 2018 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 3.75% | 3.75% | 3.75% | |||||
Senior Notes 4.250 Percent Due March 2022 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.25% | 4.25% | ||||||
Senior Notes 4.75 Percent Due June 2023 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.75% | 4.75% | 4.75% | |||||
Senior Notes 4.875 Percent Due March 2024 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.875% | 4.875% | 4.875% | |||||
Senior Notes 4.75 Percent Due January 2025 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.75% | 4.75% | 4.75% | |||||
Senior Note 4.875 percent Due June 2027 [Domain] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 4.875% | 4.875% | 4.875% | |||||
Senior note 5.75 percent due December 2034 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Stated interest rate (as a percent) | 5.75% | 5.75% | 5.75% | |||||
Carrying Amount [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | $ 4,286 | $ 4,855 | ||||||
Long-term debt, net of debt issuance costs | 4,253 | 4,819 | ||||||
Less: current portion of long-term debt, net of debt issuance costs | 0 | (499) | ||||||
Long-term debt, less current portion | 4,253 | 4,320 | ||||||
Carrying Amount [Member] | Senior Notes 3.75 Percent due November 2018 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 0 | 499 | ||||||
Carrying Amount [Member] | Senior Notes 4.250 Percent Due March 2022 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 749 | 749 | ||||||
Carrying Amount [Member] | Senior Notes 4.75 Percent Due June 2023 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 941 | 951 | ||||||
Carrying Amount [Member] | Senior Notes 4.875 Percent Due March 2024 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 498 | 497 | ||||||
Carrying Amount [Member] | Senior Notes 4.75 Percent Due January 2025 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 920 | 975 | ||||||
Carrying Amount [Member] | Senior Note 4.875 percent Due June 2027 [Domain] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 689 | 695 | ||||||
Carrying Amount [Member] | Senior note 5.75 percent due December 2034 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 489 | 489 | ||||||
Estimate of Fair Value Measurement [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 4,349 | 4,702 | ||||||
Long-term debt, net of debt issuance costs | 4,349 | 4,702 | ||||||
Less: current portion of long-term debt, net of debt issuance costs | 0 | (501) | ||||||
Long-term debt, less current portion | 4,349 | 4,201 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Notes 3.75 Percent due November 2018 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 0 | 501 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Notes 4.250 Percent Due March 2022 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 763 | 743 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Notes 4.75 Percent Due June 2023 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 973 | 942 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Notes 4.875 Percent Due March 2024 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 514 | 489 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Notes 4.75 Percent Due January 2025 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 929 | 936 | ||||||
Estimate of Fair Value Measurement [Member] | Senior Note 4.875 percent Due June 2027 [Domain] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | 688 | 650 | ||||||
Estimate of Fair Value Measurement [Member] | Senior note 5.75 percent due December 2034 [Member] | ||||||||
Debt Fair Value Disclosures | ||||||||
Current and noncurrent debt including short-term borrowings | $ 482 | $ 441 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) | 12 Months Ended | ||
Jun. 28, 2019USD ($)$ / sharesshares | Oct. 29, 2018USD ($) | Jun. 29, 2018$ / sharesshares | |
Equity, Class of Treasury Stock [Line Items] | |||
Authorized share capital (in dollars) | $ | $ 13,500 | ||
Ordinary shares, authorized (in shares) | 1,250,000,000 | 1,250,000,000 | |
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |
Ordinary shares, outstanding (in shares) | 269,097,971 | 287,170,363 | |
Preferred shares, authorized (in shares) | 100,000,000 | 100,000,000 | |
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |
Preferred shares, shares issued | 0 | 0 | |
Preferred shares, shares outstanding | 0 | 0 | |
Ordinary shares, voting rights | one vote per share | ||
Preferred Stock Minimum Number of Series | 1 | ||
Stock Repurchase Program, Authorized Amount | $ | $ 3,000,000,000 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 2,200,000,000 | ||
October 2018 Share Repurchase [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ | $ 2,300,000,000 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of Share Repurchases) (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |||
Repurchases of Equity Securities, Number of Shares Repurchased | |||||
Number of shares repurchased, cumulative, beginning of the period (in shares) | 352 | 341 | 328 | ||
Number of shares repurchased, during the period (in shares) | 22 | [1] | 11 | [1] | 13 |
Number of shares repurchased, cumulative, end of the period (in shares) | 374 | 352 | 341 | ||
Repurchases of Equity Securities, Dollar Value of Shares Repurchased | |||||
Dollar value of shares repurchased, cumulative, beginning of the period | $ 10,502 | $ 10,118 | $ 9,631 | ||
Dollar value of shares repurchased during the period | 997 | [1] | 384 | [1] | 487 |
Dollar value of shares repurchased, cumulative, end of the period | 11,499 | 10,502 | 10,118 | ||
Settlement in connection with tax withholding | $ 31 | $ 23 | $ 27 | ||
Settlement of shares in connection with tax withholding (in shares) | 1 | 1 | 1 | ||
[1] | For fiscal years 2019, 2018 and 2017, includes net share settlements of $31 million, $23 million, and $27 million for 1 million, 1 million and 1 million shares in connection with tax withholding related to vesting of restricted stock units, respectively. |
Share-based Compensation (Narra
Share-based Compensation (Narrative) (Details) | Nov. 04, 2011shares | Jun. 28, 2019USD ($)mo$ / sharesshares | Jun. 29, 2018USD ($)$ / sharesshares | Jun. 30, 2017USD ($)shares | Oct. 19, 2016$ / sharesshares | Oct. 22, 2014$ / sharesshares | Oct. 26, 2011$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Par value (usd per share) | $ / shares | $ 0.00001 | $ 0.00001 | |||||
Share-based compensation | $ 99,000,000 | $ 112,000,000 | $ 137,000,000 | ||||
Tax-Deferred Savings Plan | |||||||
Percentage match of employee contribution under 401(k) plan (as a percent) | 50.00% | ||||||
Maximum contribution match by the employer as a percentage of employee compensation (as a percent) | 6.00% | ||||||
Maximum amount of contribution per employee made by the employer per year | $ 6,000 | ||||||
Matching contributions | 16,000,000 | 16,000,000 | 18,000,000 | ||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate intrinsic value of options exercised | 5,000,000 | 34,000,000 | 29,000,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 9,000,000 | 12,000,000 | 15,000,000 | ||||
Unrecognized compensation cost | $ 10,000,000 | ||||||
Number of shares, granted | shares | 400,000 | ||||||
Unrecognized compensation cost of estimated forfeitures | $ 2,000,000 | ||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 2 months 12 days | ||||||
STX 2012 EIP [Member] | Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | shares | 7,500,000 | 25,000,000 | 27,000,000 | ||||
Par value (usd per share) | $ / shares | $ 0 | $ 0 | $ 0 | ||||
Share Reserves ratio, granted | 2.5 | ||||||
Number of shares available for grant | shares | 19,700,000 | ||||||
STX 2004 SCP [Member] | Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares deregistered from the plan | shares | 11,000,000 | ||||||
Equity Incentive Plan Dot Hill 2009 [Member] [Domain] | Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | shares | 2,000,000 | ||||||
Share Reserves ratio, granted | 1.5 | ||||||
ESPP [Member] | Employee Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | shares | 60,000,000 | ||||||
Per share weighted average price of shares purchased | $ / shares | $ 40.85 | ||||||
Number of shares available for grant | shares | 11,400,000 | ||||||
Offering period for Stock Purchase Plan (in months) | 6 months | ||||||
Maximum number of shares per offering period | shares | 1,500,000 | ||||||
Employee purchase price, percentage of fair market value of ordinary shares | 85.00% | ||||||
Aggregate intrinsic value of options exercised | $ 10,000,000 | $ 31,000,000 | $ 24,000,000 | ||||
Unrecognized compensation cost | $ 1,600,000 | ||||||
Number of shares, granted | shares | 1,400,000 | ||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 1 month | ||||||
Full Value Share Awards [Member] | Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 4 years | ||||||
Full Value Share Awards [Member] | Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Full Value Share Awards [Member] | Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of options to be vested proportionately after first Anniversary of vesting commencement date (as a percent) | 75.00% | ||||||
Remaining award vesting period (in months) | mo | 36 | ||||||
TSR/ROIC [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares | 400,000 | 400,000 | 600,000 | ||||
Performance period (in years) | 3 years | ||||||
Minimum percentage of targeted stock units to vest (as a percent) | 0.00% | ||||||
Maximum percentage of targeted stock units to vest (as a percent) | 200.00% | ||||||
AEPS [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Annual vesting percentage for share awards and restricted units (as a percent) | 25.00% | ||||||
Award vesting period | 7 years | ||||||
AEPS [Member] | Performance Shares [Member] | Senior Executive Officers [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | shares | 100,000 | 200,000 | 200,000 | ||||
AEPS [Member] | Performance Shares [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 7 years | ||||||
Nonvested Shares [Member] | Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | $ 129,000,000 | ||||||
Unrecognized compensation cost of estimated forfeitures | $ 12,000,000 | ||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 3 months 18 days | ||||||
Aggregate fair value of nonvested shares vested | $ 57,000,000 | $ 76,000,000 | $ 73,000,000 | ||||
Performance Awards Market Condition [Member] | Stock Compensation Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Aggregate fair value of nonvested shares vested | 12,000,000 | $ 11,000,000 | $ 17,000,000 | ||||
Performance Awards Market Condition [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost | 18,000,000 | ||||||
Unrecognized compensation cost of estimated forfeitures | $ 1,000,000 | ||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 1 year 7 months 6 days | ||||||
Share-based Compensation Award, Tranche One [Member] | Full Value Share Awards [Member] | Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of options to be vested on first anniversary of vesting commencement date (as a percent) | 25.00% |
Share-based Compensation (Fair
Share-based Compensation (Fair Value of Nonvested Shares and Performance Shares) (Details) | 12 Months Ended |
Jun. 28, 2019$ / shares | |
Stock Compensation Plan [Member] | Nonvested Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average fair value (in dollars per share) | $ 44.37 |
Share-based Compensation (Weigh
Share-based Compensation (Weighted-average assumptions used to determine the fair value) (Details) - $ / shares | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average expected dividend rate | 5.00% | 8.10% | 7.00% |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 2 months 12 days | 4 years 2 months 12 days | 4 years 2 months 12 days |
Volatility, low end of the range | 39.00% | 38.00% | 38.00% |
Volatility, high end of the range | 40.00% | 42.00% | 42.00% |
Weighted-average volatility | 39.00% | 40.00% | 39.00% |
Weighted-average expected dividend rate | 4.70% | 6.80% | 6.30% |
Risk-free interest rate, minimum | 2.50% | 1.50% | 1.10% |
Risk-free interest rate, maximum | 2.80% | 2.70% | 1.80% |
Weighted average fair value | $ 11.49 | $ 6.56 | $ 6.83 |
Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 4.60% | 3.80% | 4.90% |
Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 5.00% | 7.40% | 6.40% |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 2 months 12 days | 4 years 2 months 12 days | 4 years 2 months 12 days |
Weighted-average expected dividend rate | 4.68% | 7.11% | 6.40% |
Weighted average fair value | $ 44.37 | $ 26.69 | $ 30.85 |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 4.10% | 3.50% | 4.60% |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 6.40% | 7.40% | 7.70% |
Employee Stock [Member] | ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Volatility, low end of the range | 34.00% | 37.00% | 36.00% |
Volatility, high end of the range | 42.00% | 38.00% | 49.00% |
Weighted-average volatility | 38.00% | 37.00% | 43.00% |
Weighted-average expected dividend rate | 5.20% | 6.50% | 6.80% |
Risk-free interest rate, minimum | 2.20% | 1.10% | 0.40% |
Risk-free interest rate, maximum | 2.40% | 1.60% | 0.60% |
Weighted average fair value | $ 12.18 | $ 10.10 | $ 9.78 |
Employee Stock [Member] | ESPP [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 4.80% | 4.60% | 5.60% |
Employee Stock [Member] | ESPP [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 5.60% | 7.60% | 7.80% |
Performance Shares [Member] | TSR/ROIC [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 3 years | 3 years | 3 years |
Volatility, low end of the range | 41.00% | ||
Volatility, high end of the range | 42.00% | ||
Volatility | 46.00% | 45.00% | |
Weighted-average volatility | 46.00% | 45.00% | 41.00% |
Expected dividend rate | 5.00% | 8.10% | |
Risk-free interest rate, minimum | 0.90% | ||
Risk-free interest rate, maximum | 1.30% | ||
Risk-free interest rate | 2.80% | 1.40% | |
Weighted average fair value | $ 46.38 | $ 25.90 | $ 32.41 |
Performance Shares [Member] | TSR/ROIC [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 6.30% | ||
Performance Shares [Member] | TSR/ROIC [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 7.00% | ||
Performance Shares [Member] | AEPS [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 2 months 12 days | 4 years 2 months 12 days | 4 years 2 months 12 days |
Weighted-average expected dividend rate | 4.70% | 7.00% | 6.20% |
Weighted average fair value | $ 43.92 | $ 27.10 | $ 31.61 |
Performance Shares [Member] | AEPS [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 4.60% | 5.80% | 5.90% |
Performance Shares [Member] | AEPS [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 5.00% | 7.20% | 6.40% |
Share-based Compensation (Stock
Share-based Compensation (Stock option activity) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 9 | $ 12 | $ 15 |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 2 months 12 days | ||
Number of shares, outstanding at the beginning of the period | 4 | ||
Number of shares, granted | 0.4 | ||
Number of shares, exercised | (0.4) | ||
Number of shares, forfeitures | (0.5) | ||
Number of shares, expirations | 0 | ||
Number of shares, outstanding at the end of the period | 3.5 | 4 | |
Number of shares, vested and expected to vest | 3.4 | ||
Number of shares, exercisable | 2.1 | ||
Weighted-average exercise price, outstanding at the beginning of the period (in dollars per share) | $ 39 | ||
Weighted-average exercise price, granted (in dollars per share) | 48.99 | ||
Weighted average exercise price option issued (in dollars per share) | 33.55 | ||
Weighted-average exercise price, forfeitures (in dollars per share) | 35.71 | ||
Weighted-average exercise price, expirations (in dollars per share) | 0 | ||
Weighted-average exercise price, outstanding at the end of the period (in dollars per share) | 41.04 | $ 39 | |
Weighted-average exercise price, vested and expected to vest (in dollars per share) | 41.06 | ||
Weighted-average exercise price, exercisable (in dollars per share) | $ 42.11 | ||
Weighted-average remaining contractual term, outstanding at the beginning of the period (in years) | 4 years 2 months 26 days | 5 years | |
Weighted-average remaining contractual term, outstanding at the end of the period (in years) | 4 years 2 months 26 days | 5 years | |
Weighted-average remaining contractual term, vested and expected to vest (in years) | 4 years 2 months 23 days | ||
Weighted-average remaining contractual term, exercisable (in years) | 3 years 7 months 6 days | ||
Aggregate intrinsic value, outstanding at the beginning of the period | $ 72 | ||
Aggregate intrinsic value, outstanding at the end of the period | 29 | $ 72 | |
Aggregate intrinsic value, vested and expected to vest | 29 | ||
Aggregate intrinsic value, exercisable | $ 16 | ||
Nonvested Shares [Member] | Stock Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 3 months 18 days |
Share-based Compensation (Nonve
Share-based Compensation (Nonvested share activity) (Details) - Nonvested Shares [Member] - Stock Compensation Plan [Member] shares in Millions | 12 Months Ended |
Jun. 28, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 2 years 3 months 18 days |
Number of shares, nonvested at the beginning of the period | shares | 5.2 |
Number of shares, granted | shares | 2.5 |
Number of shares, forfeitures | shares | (0.6) |
Number of shares, vested | shares | (1.7) |
Number of shares, nonvested at the end of the period | shares | 5.4 |
Weighted-average grant-date fair value, nonvested at the beginning of the period (in dollars per share) | $ / shares | $ 30.74 |
Weighted-average grant-date fair value, granted (in dollars per share) | $ / shares | 44.37 |
Weighted-average grant-date fair value, forfeitures (in dollars per share) | $ / shares | 33.45 |
Weighted-average grant-date fair value, vested (in dollars per share) | $ / shares | 32.72 |
Weighted-average grant-date fair value, nonvested at the end of the period (in dollars per share) | $ / shares | $ 36.01 |
Share-based Compensation (Perfo
Share-based Compensation (Performance award activity) (Details) - Performance Shares [Member] - $ / shares shares in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
TSR/ROIC [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 0.4 | 0.4 | 0.6 |
Performance Awards Market Condition [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, period for recognition | 1 year 7 months 6 days | ||
Number of shares, nonvested at the beginning of the period | 1.2 | ||
Number of shares, granted | 0.5 | ||
Number of shares, forfeitures | 0.4 | ||
Number of shares, vested | (0.3) | ||
Number of shares, nonvested at the end of the period | 1 | 1.2 | |
Weighted-average grant-date fair value, nonvested at the beginning of the period (in dollars per share) | $ 33.34 | ||
Weighted-average grant-date fair value, granted (in dollars per share) | 45.74 | ||
Weighted-average grant-date fair value, forfeitures (in dollars per share) | 27.11 | ||
Weighted-average grant-date fair value, vested (in dollars per share) | 43.85 | ||
Weighted-average grant-date fair value, nonvested at the end of the period (in dollars per share) | $ 43.81 | $ 33.34 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of computation of basic and diluted net income (loss) per share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Numerator: | |||
Net income | $ 2,012 | $ 1,182 | $ 772 |
Number of shares used in per share calculations: | |||
Total shares for purposes of calculating basic net income per share attributable to Seagate Technology plc | 282 | 288 | 296 |
Weighted-average effect of dilutive securities: | |||
Employee equity award plans | 3 | 4 | 3 |
Total shares for purpose of calculating diluted net income per share attributable to Seagate Technology plc | 285 | 292 | 299 |
Net income per share attributable to Seagate Technology plc ordinary shareholders: | |||
Basic net income per share (in dollars per share) | $ 7.13 | $ 4.10 | $ 2.61 |
Diluted net income per share (in dollars per share) | $ 7.06 | $ 4.05 | $ 2.58 |
Earnings Per Share (Schedule _2
Earnings Per Share (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Employee equity award plans | |||
Antidilutive securities excluded from computation of earnings per share | |||
Potential common shares excluded from the computation of diluted net income (loss) per share (in shares) | 0 | 1 | 1 |
Business Segment and Geograph_3
Business Segment and Geographic Information (Narrative) (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Consolidated revenue concentration | |||
Percentage of consolidated revenue (as a percent) | 10.00% | 10.00% | |
Dell Inc. [Member] | |||
Consolidated revenue concentration | |||
Percentage of consolidated revenue (as a percent) | 10.00% |
Business Segment and Geograph_4
Business Segment and Geographic Information (Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | ||
Revenue from external customers and long-lived assets | ||||
Revenue | [1] | $ 10,390 | $ 11,184 | $ 10,771 |
Long-lived assets | [2] | 1,923 | 1,848 | 1,933 |
Singapore | ||||
Revenue from external customers and long-lived assets | ||||
Revenue | [1] | 5,085 | 5,445 | 5,070 |
Long-lived assets | [2] | 556 | 600 | 570 |
United States | ||||
Revenue from external customers and long-lived assets | ||||
Revenue | [1] | 3,310 | 3,719 | 3,535 |
Long-lived assets | [2] | 523 | 565 | 643 |
The Netherlands | ||||
Revenue from external customers and long-lived assets | ||||
Revenue | [1] | 1,630 | 1,598 | 1,501 |
Other | ||||
Revenue from external customers and long-lived assets | ||||
Revenue | [1] | 365 | 422 | 665 |
Long-lived assets | [2] | 224 | 212 | 248 |
Thailand | ||||
Revenue from external customers and long-lived assets | ||||
Long-lived assets | [2] | 558 | 426 | 414 |
China | ||||
Revenue from external customers and long-lived assets | ||||
Long-lived assets | [2] | $ 62 | $ 45 | $ 58 |
[1] | (a)Revenue is attributed to countries based on the bill from location. | |||
[2] | Text selection found with no content. |
Commitments (Narrative) (Detail
Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Leases [Abstract] | |||
Total rent expense for all land, facility and equipment operating leases, net of sublease income | $ 18 | $ 22 | $ 29 |
Recorded Unconditional Purchase Obligation [Line Items] | |||
Unrecorded Unconditional Purchase Obligation | 212 | ||
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 22 | ||
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 13 | ||
Unrecorded Unconditional Purchase Obligation, Due within Four Years | 2 | ||
Unrecorded Unconditional Purchase Obligation, Due within Five Years | 51 | ||
Unrecorded Unconditional Purchase Obligation, Due within Six Years | 48 | ||
Unrecorded Unconditional Purchase Obligation, Due After Six Years | 76 | ||
Capital Addition Purchase Commitments [Member] | |||
Capital Expenditures [Abstract] | |||
Long-term purchase commitment, amount | $ 23 |
Commitments (Future minimum lea
Commitments (Future minimum lease payments for operating leases) (Details) $ in Millions | Jun. 28, 2019USD ($) |
Commitments Disclosure [Abstract] | |
2020 | $ 20 |
2021 | 17 |
2022 | 9 |
2023 | 8 |
2024 | 5 |
Thereafter | 66 |
Total future minimum lease payments for operating leases | $ 125 |
Guarantees (Narrative) (Details
Guarantees (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | Jul. 01, 2016 | |
Schedule of Fiscal Years [Line Items] | ||||
intellectual property indemnification obligations | $ 0 | |||
intellectual property indemnification obligations | 0 | |||
Standard product warranty accrual | 195,000,000 | $ 237,000,000 | $ 233,000,000 | $ 206,000,000 |
Standard product warranty accrual, period increase (decrease) | $ (42,000,000) | |||
Minimum [Member] | ||||
Schedule of Fiscal Years [Line Items] | ||||
Product warranty period term (in years) | 1 year | |||
Maximum [Member] | ||||
Schedule of Fiscal Years [Line Items] | ||||
Product warranty period term (in years) | 5 years |
Guarantees (Product Warranty) (
Guarantees (Product Warranty) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance, beginning of period | $ 237 | $ 233 | $ 206 |
Warranties issued | 112 | 147 | 131 |
Repairs and replacements | (99) | (106) | (114) |
Changes in liability for pre-existing warranties, including expirations | (55) | (37) | 10 |
Balance, end of period | $ 195 | $ 237 | $ 233 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 02, 2019 | Jun. 28, 2019 | Jun. 29, 2018 | Jun. 30, 2017 |
Subsequent Event [Line Items] | ||||
Cash dividends declared per ordinary share (in dollars per share) | $ 2.52 | $ 2.52 | $ 2.52 | |
Subsequent event [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash dividends declared per ordinary share (in dollars per share) | $ 0.63 | |||
Common Stock [Member] | Subsequent event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends payable, date to be paid | Oct. 9, 2019 | |||
Dividends payable, date of record | Sep. 25, 2019 | |||
Other Current Assets [Member] | Land and Building [Member] | Significant Unobservable Inputs (Level 3) [Member] | Reported Value Measurement [Member] | Nonrecurring basis [Member] | ||||
Subsequent Event [Line Items] | ||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 23 | $ 26 |