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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Dec. 28, 2012	Jan. 23, 2013
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 28, 2012
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2
Trading Symbol	WDC
Entity Registrant Name	WESTERN DIGITAL CORP
Entity Central Index Key	0000106040
Current Fiscal Year End Date	--06-28
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		240,665,370

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 28, 2012	Jun. 29, 2012
Current assets:
Cash and cash equivalents	$ 3,816	$ 3,208
Accounts receivable, net	1,732	2,364
Inventories	1,204	1,210
Other current assets	423	359
Total current assets	7,175	7,141
Property, plant and equipment, net	3,938	4,067
Goodwill	1,907	1,975
Other intangible assets, net	709	799
Other non-current assets	200	224
Total assets	13,929	14,206
Current liabilities:
Accounts payable	2,185	2,773
Accrued expenses	722	858
Accrued warranty	131	171
Current portion of long-term debt	288	230
Total current liabilities	3,326	4,032
Long-term debt	1,840	1,955
Other liabilities	516	550
Total liabilities	5,682	6,537
Commitments and contingencies (Notes 4 and 5)
Shareholders' equity:
Preferred stock, $.01 par value; authorized - 5 shares; issued and outstanding - none
Common stock, $.01 par value; authorized - 450 shares; issued - 261 shares; outstanding - 241 and 246 shares, respectively	3	3
Additional paid-in capital	2,224	2,223
Accumulated other comprehensive income (loss)	8	(15)
Retained earnings	6,744	6,012
Treasury stock - common shares at cost; 20 shares and 15 shares, respectively	(732)	(554)
Total shareholders' equity	8,247	7,669
Total liabilities and shareholders' equity	$ 13,929	$ 14,206

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions	Dec. 28, 2012	Jun. 29, 2012
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, authorized	5	5
Preferred stock, issued
Preferred stock, outstanding
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized	450	450
Common stock, issued	261	261
Common stock, outstanding	241	246
Treasury stock, shares	20	15

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 28, 2012	Dec. 30, 2011
Revenue, net	$ 3,824	$ 1,995	$ 7,859	$ 4,689
Cost of revenue	2,765	1,347	5,607	3,500
Gross margin	1,059	648	2,252	1,189
Operating expenses:
Research and development	378	191	774	384
Selling, general and administrative	162	96	341	185
Employee termination benefits and other charges	41		67
Charges related to flooding		199		199
Total operating expenses	581	486	1,182	768
Operating income	478	162	1,070	421
Other income (expense):
Interest income	3	3	5	6
Interest and other expense	(13)	(5)	(29)	(9)
Total other expense, net	(10)	(2)	(24)	(3)
Income before income taxes	468	160	1,046	418
Income tax provision	133	15	192	34
Net income	$ 335	$ 145	$ 854	$ 384
Income per common share:
Basic	$ 1.38	$ 0.62	$ 3.50	$ 1.64
Diluted	$ 1.36	$ 0.61	$ 3.43	$ 1.62
Weighted average shares outstanding:
Basic	242	234	244	234
Diluted	246	237	249	237

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 28, 2012	Dec. 30, 2011
Net income	$ 335	$ 145	$ 854	$ 384
Other comprehensive income (loss), net of tax:
Net unrealized gains (losses) on cash flow hedges	(2)	10	26	(9)
Change in net actuarial losses			1
Translation loss	(4)		(4)
Other comprehensive income (loss)	(6)	10	23	(9)
Total comprehensive income	$ 329	$ 155	$ 877	$ 375

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the economic entity, including both controlling (parent) and noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, including any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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- Definition

Amount after tax, before reclassification adjustments, resulting from the process of expressing in the reporting currency of the reporting entity those amounts that are denominated or measured in a different currency, and from transactions whose terms are denominated in a currency other than the entity's functional currency.

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- Definition

Net of tax amount, before reclassification adjustments, of the change in accumulated gain (loss) from derivative instruments designated and qualifying as the effective portion of cash flow hedges. Also includes an entity's share of an equity investee's increase (decrease) in deferred hedging gain (loss).

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Dec. 28, 2012	Dec. 30, 2011
Cash flows from operating activities
Net income	$ 854	$ 384
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	622	298
Stock-based compensation	71	41
Deferred income taxes	68	18
Non-cash portion of employee termination benefits and other charges	15
Non-cash portion of charges related to flooding		109
Changes in:
Accounts receivable, net	633	459
Inventories	7	111
Accounts payable	(352)	(675)
Accrued expenses	(169)	(2)
Other assets and liabilities	(41)	(13)
Net cash provided by operating activities	1,708	730
Cash flows from investing activities
Purchases of property, plant and equipment	(628)	(253)
Acquisitions, net of cash acquired	(27)
Purchase of investment	(15)
Net cash used in investing activities	(670)	(253)
Cash flows from financing activities
Issuance of stock under employee stock plans	86	23
Taxes paid on vested stock awards under employee stock plans	(8)	(5)
Excess tax benefits from employee stock plans	35	2
Repurchases of common stock	(364)
Dividends to shareholders	(121)
Repayment of debt	(58)	(63)
Net cash used in financing activities	(430)	(43)
Net increase in cash and cash equivalents	608	434
Cash and cash equivalents, beginning of period	3,208	3,490
Cash and cash equivalents, end of period	3,816	3,924
Supplemental disclosure of cash flow information:
Cash paid for income taxes	95	8
Cash paid for interest	$ 21	$ 1

Basis of Presentation

6 Months Ended

Dec. 28, 2012

Basis of Presentation

1. Basis of Presentation

The accounting policies followed by Western Digital Corporation (the “Company”) are set forth in Part II, Item 8, Note 1 of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended June 29, 2012. In the opinion of management, all adjustments necessary to fairly state the unaudited condensed consolidated financial statements have been made. All such adjustments are of a normal, recurring nature. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 29, 2012. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year.

Company management has made estimates and assumptions relating to the reporting of certain assets and liabilities in conformity with U.S. GAAP. These estimates and assumptions have been applied using methodologies that are consistent throughout the periods presented. However, actual results could differ materially from these estimates.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References + Details

Supplemental Financial Statement Data

6 Months Ended

Dec. 28, 2012

Supplemental Financial Statement Data

2. Supplemental Financial Statement Data

Inventories; Property, Plant and Equipment; and Other Intangible Assets


	Dec. 28, 2012			Jun. 29, 2012
	(in millions)
Inventories:
Raw materials and component parts	$	193		$	245
Work-in-process		581			552
Finished goods		430			413

Total inventories	$	1,204		$	1,210

Property, plant and equipment:
Property, plant and equipment	$	7,490		$	7,173
Accumulated depreciation		(3,552	)		(3,106	)

Property, plant and equipment, net	$	3,938		$	4,067

Other intangible assets:
Other intangible assets	$	948		$	933
Accumulated amortization		(239	)		(134	)

Other intangible assets, net	$	709		$	799

Warranty

The Company records an accrual for estimated warranty costs when revenue is recognized. The Company generally warrants its products for a period of one to five years. The warranty provision considers estimated product failure rates and trends, estimated replacement costs, estimated repair costs which include scrap costs, and estimated costs for customer compensatory claims related to product quality issues, if any. A statistical warranty tracking model is used to help prepare estimates and assist the Company in exercising judgment in determining the underlying estimates. The statistical tracking model captures specific detail on hard drive reliability, such as factory test data, historical field return rates, and costs to repair by product type. Management’s judgment is subject to a greater degree of subjectivity with respect to newly introduced products because of limited field experience with those products upon which to base warranty estimates. Management reviews the warranty accrual quarterly for products shipped in prior periods and which are still under warranty. Any changes in the estimates underlying the accrual may result in adjustments that impact current period gross margin and income. Such changes are generally a result of differences between forecasted and actual return rate experience and costs to repair. If actual product return trends, costs to repair returned products or costs of customer compensatory claims differ significantly from estimates, future results of operations could be materially affected. Changes in the warranty accrual were as follows (in millions):


	Three Months Ended						Six Months Ended
	Dec. 28, 2012			Dec. 30, 2011			Dec. 28, 2012			Dec. 30, 2011
Warranty accrual, beginning of period	$	230		$	173		$	260		$	170
Charges to operations		44			24			90			69
Utilization		(51	)		(42	)		(111	)		(84	)
Changes in estimate related to pre-existing warranties		(12	)		1			(28	)		1

Warranty accrual, end of period	$	211		$	156		$	211		$	156

The long-term portion of the warranty accrual classified in other liabilities was $80 million at December 28, 2012 and $89 million at June 29, 2012.

Income per Common Share

6 Months Ended

Dec. 28, 2012

Income per Common Share

3. Income per Common Share

The Company computes basic income per common share using net income and the weighted average number of common shares outstanding during the period. Diluted income per common share is computed using net income and the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include certain dilutive outstanding employee stock options, rights to purchase shares of common stock under the Company’s Employee Stock Purchase Plan (“ESPP”) and restricted stock unit awards (“RSUs”).

The following table illustrates the computation of basic and diluted income per common share (in millions, except per share data):


	Three Months Ended				Six Months Ended
	Dec. 28, 2012		Dec. 30, 2011		Dec. 28, 2012		Dec. 30, 2011
Net income	$	335	$	145	$	854	$	384

Weighted average shares outstanding:
Basic		242		234		244		234
Employee stock options and other		4		3		5		3

Diluted		246		237		249		237

Income per common share:
Basic	$	1.38	$	0.62	$	3.50	$	1.64

Diluted	$	1.36	$	0.61	$	3.43	$	1.62

Anti-dilutive potential common shares excluded*		7		7		6		5

*	For purposes of computing diluted income per common share, certain potentially dilutive securities have been excluded from the calculation because their effect would have been anti-dilutive.

Debt

6 Months Ended

Dec. 28, 2012

Debt

4. Debt

On March 8, 2012 (the “Closing Date”), the Company, in its capacity as the parent entity and guarantor, Western Digital Technologies, Inc. (“WDT”), a wholly owned subsidiary of the Company, and Western Digital Ireland, Ltd. (“WDI”), an indirect wholly owned subsidiary of the Company, entered into a five-year credit agreement (the “Credit Facility”) with Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer, and certain other participating lenders (collectively, the “Lenders”). The Credit Facility provides for $2.8 billion of unsecured loan facilities consisting of a $2.3 billion term loan facility and a $500 million revolving credit facility. The only borrower under the term loan facility is WDI and the revolving credit facility is available to both WDI and WDT (WDI and WDT are referred to as “the Borrowers”). The Borrowers may elect to expand the Credit Facility by up to an additional $500 million if existing or new lenders provide additional term or revolving commitments. The obligations of the Borrowers under the Credit Facility are guaranteed by the Company and the Company’s material domestic subsidiaries, and the obligations of WDI under the Credit Facility are also guaranteed by WDT.

The term loans and the revolving credit loans may be prepaid in whole or in part at any time without premium or penalty, subject to certain conditions. As of December 28, 2012, the term loan facility had a variable interest rate of 2.21% and a remaining balance of $2.1 billion. The Company is required to make principal payments on the term loan facility totaling $230 million a year for fiscal 2013 through fiscal 2016, and the remaining $1.3 billion balance (subject to adjustment to reflect prepayments or an increase to its term loan facility) due and payable in full in fiscal 2017 on March 8, 2017. As of December 28, 2012, $500 million was available for future borrowings on the revolving credit facility.

The Credit Facility requires the Company to comply with a leverage ratio and an interest coverage ratio calculated on a consolidated basis for the Company and its subsidiaries. In addition, the Credit Facility contains customary covenants, including covenants that limit or restrict, subject to certain exceptions, the Company’s and its subsidiaries’ ability to incur liens, incur indebtedness, make certain restricted payments, merge, consolidate or dispose of substantially all of its assets, and enter into certain speculative hedging arrangements and make any material change in the nature of its business. Upon the occurrence of an event of default under the Credit Facility, the administrative agent at the request, or with the consent, of the Required Lenders (as defined in the Credit Facility) may cease making loans, terminate the Credit Facility and declare all amounts outstanding to be immediately due and payable, require the cash collateralization of letters of credit and/or exercise all other rights and remedies available to it, the Lenders and the letter of credit issuer. The Credit Facility specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults, material judgment defaults and a change of control default. As of December 28, 2012, the Company was in compliance with all covenants.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Legal Proceedings

6 Months Ended

Dec. 28, 2012

Legal Proceedings

5. Legal Proceedings

When the Company becomes aware of a claim or potential claim, the Company assesses the likelihood of any loss or exposure. The Company discloses information regarding each material claim where the likelihood of a loss contingency is probable or reasonably possible. If a loss contingency is probable and the amount of the loss can be reasonably estimated, the Company records an accrual for the loss. In such cases, there may be an exposure to potential loss in excess of the amount accrued. Where a loss is not probable but is reasonably possible or where a loss in excess of the amount accrued is reasonably possible, the Company discloses an estimate of the amount of the loss or range of possible losses for the claim if a reasonable estimate can be made, unless the amount of such reasonably possible losses is not material to the Company’s financial position, results of operations or cash flows. Unless otherwise stated below, for each of the matters described below, the Company has either recorded an accrual for losses that are probable and reasonably estimable or has determined that, while a loss is reasonably possible (including potential losses in excess of the amounts accrued by the Company), a reasonable estimate of the amount of loss or range of possible losses with respect to the claim or in excess of amounts already accrued by the Company cannot be made. The ability to predict the ultimate outcome of such matters involves judgments, estimates and inherent uncertainties. The actual outcome of such matters could differ materially from management’s estimates.

Solely for purposes of this footnote, “WD” refers to Western Digital Corporation or one or more of its subsidiaries prior to the acquisition of Viviti Technologies Ltd., until recently known as Hitachi Global Storage Technologies Holdings Pte. Ltd. (“HGST”), “HGST” refers to HGST or one or more of its subsidiaries as of the Closing Date, and “the Company” refers to Western Digital Corporation and all of its subsidiaries on a consolidated basis including HGST.

Intellectual Property Litigation

On June 20, 2008, plaintiff Convolve, Inc. (“Convolve”) filed a complaint in the Eastern District of Texas against WD, HGST, and one other company alleging infringement of U.S. Patent Nos. 6,314,473 and 4,916,635. The complaint sought unspecified monetary damages and injunctive relief. On October 10, 2008, Convolve amended its complaint to allege infringement of only the ‘473 patent. The ‘473 patent allegedly relates to interface technology to select between certain modes of a disk drive’s operations relating to speed and noise. A trial in the matter began on July 18, 2011 and concluded on July 26, 2011 with a verdict against WD and HGST in an amount that is not material to the Company’s financial position, results of operations or cash flows. WD and HGST have filed post-trial motions challenging the verdict and will evaluate their options for appeal after the Court rules on the post-trial motions.

On December 8, 2008, plaintiffs MagSil Corporation and the Massachusetts Institute of Technology (collectively, “MagSil”) filed a complaint in the District of Delaware against WD, HGST and six other companies in the disk drive industry alleging infringement of U.S. Patent Nos. 5,629,922 and 5,835,314. The complaint seeks unspecified monetary damages and injunctive relief. The asserted patents allegedly relate to tunneling magneto resistive technology. In January 2010, MagSil amended its complaint to allege infringement of only the ‘922 patent. As disclosed in the Company’s Annual Report on Form 10-K, filed with the SEC on August 13, 2010, MagSil and WD settled the matter for an amount that was not material to the Company’s financial position, results of operations or cash flows. With respect to the claim pending against HGST, in February 2011, HGST obtained a ruling invalidating the patent on summary judgment, which MagSil appealed. In 2012, the Federal Circuit Court upheld the ruling. If MagSil appeals this decision, HGST intends to continue to defend itself vigorously in this matter.

On December 7, 2009, plaintiff Nazomi Communications (“Nazomi”) filed a complaint in the Eastern District of Texas against WD and seven other companies alleging infringement of U.S. Patent Nos. 7,080,362 and 7,225,436. Nazomi dismissed the Eastern District of Texas suit after filing a similar complaint in the Central District of California on February 8, 2010. The case was subsequently transferred to the Northern District of California on October 14, 2010. The complaint seeks injunctive relief and unspecified monetary damages, fees and costs. The asserted patents allegedly relate to processor cores capable of Java hardware acceleration. In August 2012, the Court dismissed WD on summary judgment for non-infringement. If Nazomi appeals this decision, WD intends to continue to defend itself vigorously in this matter.

On January 5, 2010, plaintiff Enova Technology Corporation (“Enova”) filed a complaint in the District of Delaware against WD and Initio Corporation alleging infringement of U.S. Patent Nos. 7,136,995 and 7,386,734. Enova subsequently amended its complaint to include an additional party and additionally allege infringement of U.S. Patent No. 7,900,057. The amended complaint seeks injunctive relief and unspecified monetary damages, fees and costs. The asserted patents allegedly relate to real time full disk encryption application specific integrated circuits, or ASICs. A trial in the matter is scheduled to begin on February 25, 2013. WD intends to defend itself vigorously in this matter.

On November 10, 2010, plaintiff Rembrandt Data Storage (“Rembrandt”) filed a complaint in the Western District of Wisconsin against WD alleging infringement of U.S. Patent Nos. 5,995,342 and 6,195,232. The complaint seeks injunctive relief and unspecified monetary damages, fees and costs. The asserted patents allegedly relate to specific thin film heads having solenoid coils. After a favorable claim construction ruling by the court, WD secured a stipulation from Rembrandt to dismiss the case. Rembrandt appealed the Court’s claim construction ruling, and the Federal Circuit issued a summary affirmance in favor of WD in December 2012. If Rembrandt appeals the decision, WD intends to continue to defend itself vigorously in this matter.

On December 1, 2010, Rambus, Inc. (“Rambus”) filed a complaint with the U.S. International Trade Commission pursuant to 19 U.S.C. Section 1337 alleging that six “Primary Respondent” semiconductor chip companies and twenty-seven “Customer Respondents,” including HGST, infringe various U.S. patents. On December 29, 2010, the U.S. International Trade Commission (“ITC”) initiated an investigation into Rambus’s allegations in response to the complaint. HGST is accused of infringing U.S. Patent Nos. 6,591,353; 7,287,109; 7,602,857; 7,602,858; and 7,715,494. The complaint alleges that certain of HGST’s hard drives that contain Double data rate-type memory controllers, Serial Advanced Technology Attachment interfaces, Peripheral Component Interconnect Express interfaces, DisplayPort interfaces, or Serial Attached SCSI interfaces infringe the patents. The complaint seeks to enjoin the importation into the U.S. of the allegedly infringing semiconductor chips and products. It also requests a cease-and-desist order preventing the parties from exhausting allegedly infringing inventory in the U.S. The ITC has found in favor of the respondents in all matters and Rambus has appealed to the Federal Circuit. HGST intends to continue to defend itself vigorously in this matter.

On August 1, 2011, plaintiff Guzik Technical Enterprises (“Guzik”) filed a complaint in the Northern District of California against WD and various of its subsidiaries alleging infringement of U.S. Patent Nos. 6,023,145 and 6,785,085, breach of contract and misappropriation of trade secrets. The complaint seeks injunctive relief and unspecified monetary damages, fees and costs. The patents asserted by Guzik allegedly relate to devices used to test hard disk drive heads and media. WD has filed counterclaims against Guzik or patent infringement of U.S. Patent Nos. 5,844,420; 5,640,089; 6,891,696; and 7,480,116. The patents asserted by WD relate to devices and methods used in the testing of hard disk drive heads and media. WD intends to defend itself vigorously in this matter.

Seagate Matter

On October 4, 2006, plaintiff Seagate Technology LLC (“Seagate”) filed an action in the District Court of Hennepin County, Minnesota, naming as defendants WD and one of its now former employees previously employed by Seagate. The complaint in the action alleged claims based on supposed misappropriation of trade secrets and sought injunctive relief and unspecified monetary damages, fees and costs. On June 19, 2007, WD’s former employee filed a demand for arbitration with the American Arbitration Association. A motion to stay the litigation as against all defendants and to compel arbitration of all Seagate’s claims was granted on September 19, 2007. On September 23, 2010, Seagate filed a motion to amend its claims and add allegations based on the supposed misappropriation of additional confidential information, and the arbitrator granted Seagate’s motion. The arbitration hearing commenced on May 23, 2011 and concluded on July 11, 2011.

On November 18, 2011, the sole arbitrator ruled in favor of WD in connection with five of the eight alleged trade secrets at issue, based on evidence that such trade secrets were known publicly at the time the former employee joined WD. Based on a determination that the employee had fabricated evidence, the arbitrator then concluded that WD had to know of the fabrications. As a sanction, the arbitrator precluded any evidence or defense by WD disputing the validity, misappropriation, or use of the three remaining alleged trade secrets by WD, and entered judgment in favor of Seagate with respect to such trade secrets. Using an unjust enrichment theory of damages, the arbitrator issued an interim award against WD in the amount of $525 million plus pre-award interest at the Minnesota statutory rate of 10% per year. In his decision with respect to these three trade secrets, the arbitrator did not question the relevance, veracity or credibility of any of WD’s ten expert and fact witnesses (other than WD’s former employee), nor the authenticity of any other evidence WD presented. On January 23, 2012, the arbitrator issued a final award adding pre-award interest in the amount of $105.4 million for a total final award of $630.4 million. On January 23, 2012, WD filed a petition in the District Court of Hennepin County, Minnesota to have the final arbitration award vacated. A hearing on the petition to vacate was held on March 1, 2012.

On October 12, 2012, the District Court of Hennepin County, Minnesota vacated, in full, the $630.4 million final arbitration award. Specifically, the Court confirmed the arbitration award with respect to each of the five trade secret claims that WD and the former employee had won at the arbitration and vacated the arbitration award with respect to the three trade secret claims that WD and the former employee had lost at the arbitration. The Court ordered that a rehearing be held concerning those three alleged trade secret claims before a new arbitrator.

On October 30, 2012, Seagate initiated an appeal of the Court’s decision with the Minnesota Court of Appeals. The Company strongly believes that the Court’s decision was correct and intends to vigorously oppose Seagate’s efforts to appeal the decision. Nevertheless, the Company cannot be certain it will be successful in a new arbitration of the three trade secret claims or in Seagate’s efforts to appeal the decision. In the event Seagate is successful in its efforts to appeal the Court’s decision, the original arbitration award could be reinstated. The statutory interest rate of 10% would apply from the date of the original arbitration award if the award should be reinstated.

Other Matters

In the normal course of business, the Company is subject to other legal proceedings, lawsuits and other claims. Although the ultimate aggregate amount of probable monetary liability or financial impact with respect to these other matters is subject to many uncertainties and is therefore not predictable with assurance, management believes that any monetary liability or financial impact to the Company from these other matters, individually and in the aggregate, would not be material to the Company’s financial condition, results of operations or cash flows. However, there can be no assurance with respect to such result, and monetary liability or financial impact to the Company from these other matters could differ materially from those projected.

Income Taxes

6 Months Ended

Dec. 28, 2012

Income Taxes

6. Income Taxes

The Company’s income tax provision for the three months ended December 28, 2012 was $133 million as compared to $15 million in the prior-year period. The Company’s income tax provision for the six months ended December 28, 2012 was $192 million as compared to $34 million in the prior-year period. The differences between the effective tax rate and the U.S. Federal statutory rate are primarily due to tax holidays in Malaysia, the Philippines, Singapore and Thailand that expire at various dates from 2013 through 2025, the current year generation of income tax credits and the effect of California Proposition 39 which was passed in November 2012.

On November 6, 2012, California voters approved California Proposition 39, which affects California state income tax apportionment for most multi-state taxpayers for tax years beginning on or after January 1, 2013. This proposition would reduce the Company’s future income apportioned to California, making it less likely for the Company to realize certain California deferred tax assets. As a result, the Company recorded an $88 million charge to reduce its previously recognized California deferred tax assets as of December 28, 2012.

In the three months ended December 28, 2012, the Company did not record a change in its liability for unrecognized tax benefits. In the six months ended December 28, 2012, the Company recorded a net decrease of $4 million in its liability for unrecognized tax benefits. As of December 28, 2012, the Company had a recorded liability for unrecognized tax benefits of approximately $276 million. Interest and penalties recognized on such amounts were not material.

The Internal Revenue Service (“IRS”) has completed its field examination of the federal income tax returns for fiscal years 2006 and 2007 for the Company. The Company has received Revenue Agent Reports (“RARs”) from the IRS that seek adjustments to income before income taxes of approximately $970 million in connection with unresolved issues related primarily to transfer pricing and certain other intercompany transactions. The Company disagrees with the proposed adjustments. In May 2011, the Company filed a protest with the IRS Appeals Office regarding the proposed adjustments. Meetings with the Appeals Office began in February 2012. In January 2012, the IRS commenced an examination of the Company’s fiscal years 2008 and 2009 and of the 2007 fiscal period ended September 5, 2007 of Komag, Incorporated (“Komag”), which was acquired by the Company on September 5, 2007.

The Company believes that adequate provision has been made for any adjustments that may result from tax audits. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. As of December 28, 2012, the Company believes that it is reasonably possible the liability for unrecognized tax benefits will decrease by $54 million within the next twelve months. Any significant change in the amount of the Company’s liability for unrecognized tax benefits would most likely result from additional information or settlements relating to the examination of the Company’s tax returns.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value Measurements

6 Months Ended

Dec. 28, 2012

Fair Value Measurements

7. Fair Value Measurements

Financial assets and liabilities that are remeasured and reported at fair value at each reporting period are classified and disclosed in one of the following three levels:

Level 1. Quoted prices in active markets for identical assets or liabilities.

Level 2. Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3. Inputs that are unobservable for the asset or liability and that are significant to the fair value of the assets or liabilities.

The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of December 28, 2012, and indicates the fair value hierarchy of the valuation techniques utilized to determine such value (in millions):


	Fair Value Measurements at Reporting Date Using
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	951	$	—	$	—	$	951
Foreign exchange contracts		—		15		—		15
Auction-rate securities		—		—		14		14

Total assets at fair value	$	951	$	15	$	14	$	980

Liabilities:
Foreign exchange contracts		—		3		—		3

Total liabilities at fair value	$	—	$	3	$	—	$	3

The following table presents information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of June 29, 2012, and indicates the fair value hierarchy of the valuation techniques utilized to determine such value (in millions):


	Fair Value Measurements at Reporting Date Using
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	721	$	—	$	—	$	721
U.S. Treasury securities		—		61		—		61
U.S. Government agency securities		—		62		—		62

Total cash equivalents		721		123		—		844

Foreign exchange contracts		—		1		—		1
Auction-rate securities		—		—		14		14

Total assets at fair value	$	721	$	124	$	14	$	859

Liabilities:
Foreign exchange contracts		—		22		—		22

Total liabilities at fair value	$	—	$	22	$	—	$	22

Money Market Funds. The Company’s money market funds are funds that invest in U.S. Treasury securities and are recorded within cash and cash equivalents in the condensed consolidated balance sheets. Money market funds are valued based on quoted market prices.

U.S. Treasury Securities. The Company’s U.S. Treasury securities are investments in Treasury bills with original maturities of three months or less, are held in custody by a third party and are recorded within cash and cash equivalents in the condensed consolidated balance sheets. U.S. Treasury securities are valued using a market approach which is based on observable inputs including market interest rates from multiple pricing sources.

U.S. Government Agency Securities. The Company’s U.S. Government agency securities are investments in fixed income securities sponsored by the U.S. Government with original maturities of three months or less, are held in custody by a third party and are recorded within cash and cash equivalents in the condensed consolidated balance sheets. U.S. Government agency securities are valued using a market approach which is based on observable inputs including market interest rates from multiple pricing sources.

Auction-Rate Securities. The Company’s auction-rate securities have maturity dates through 2050, are primarily backed by insurance products and are accounted for as available-for-sale securities. These investments are classified as long-term investments and recorded within other non-current assets in the condensed consolidated balance sheets. Auction-rate securities are valued by a third party using trade information related to the secondary market.

Foreign Exchange Contracts. The Company’s foreign exchange contracts are short-term contracts to hedge the Company’s foreign currency risk. Foreign exchange contracts are classified within other current assets and liabilities in the condensed consolidated balance sheets. Foreign exchange contracts are valued using an income approach that is based on a present value of future cash flows model. The market-based observable inputs for the model include forward rates and credit default swap rates.

In the six months ended December 28, 2012, there were no changes in Level 3 financial assets measured on a recurring basis.

The carrying amounts of cash, accounts receivable, accounts payable and accrued expenses approximate fair value for all periods presented because of the short-term maturity of these assets and liabilities. The carrying amount of debt approximates fair value because of its variable interest rate.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258

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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 44A, 44B
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Foreign Exchange Contracts

6 Months Ended

Dec. 28, 2012

Foreign Exchange Contracts

8. Foreign Exchange Contracts

Although the majority of the Company’s transactions are in U.S. dollars, some transactions are based in various foreign currencies. The Company purchases short-term, foreign exchange contracts to hedge the impact of foreign currency exchange fluctuations on certain underlying assets, revenue, liabilities and commitments for operating expenses and product costs denominated in foreign currencies. The purpose of entering into these hedging transactions is to minimize the impact of foreign currency fluctuations on the Company’s results of operations. These contract maturity dates do not exceed 12 months. All foreign exchange contracts are for risk management purposes only. The Company does not purchase foreign exchange contracts for trading purposes. As of December 28, 2012, the Company had outstanding foreign exchange contracts with commercial banks for British Pound Sterling, Euro, Japanese Yen, Malaysian Ringgit, Philippine Peso, Singapore Dollar and Thai Baht, all of which were designated as either cash flow or fair value hedges.

If the derivative is designated as a cash flow hedge, the effective portion of the change in fair value of the derivative is initially deferred in other comprehensive income (loss), net of tax. These amounts are subsequently recognized into earnings when the underlying cash flow being hedged is recognized into earnings. Recognized gains and losses on foreign exchange contracts entered into for manufacturing-related activities are reported in cost of revenue. Hedge effectiveness is measured by comparing the hedging instrument’s cumulative change in fair value from inception to maturity to the underlying exposure’s terminal value. The Company determined the ineffectiveness associated with its cash flow hedges to be immaterial to the condensed consolidated financial statements for the three and six months ended December 28, 2012 and December 30, 2011.

A change in the fair value of fair value hedges is recognized in earnings in the period incurred and is reported as a component of operating expenses. All fair value hedges were determined to be effective. The fair value and the changes in fair value on these contracts were not material to the condensed consolidated financial statements during the three and six months ended December 28, 2012 and December 30, 2011.

As of December 28, 2012, the net amount of unrealized gains with respect to the Company’s foreign exchange contracts that is expected to be reclassified into earnings within the next 12 months was $10 million. In addition, as of December 28, 2012, the Company did not have any foreign exchange contracts with credit-risk-related contingent features. The Company opened $647 million and $1.4 billion, and closed $923 million and $2.0 billion, in foreign exchange contracts in the three and six months ended December 28, 2012, respectively. The Company opened $391 million and $1.3 billion, and closed $815 million and $1.7 billion, in foreign exchange contracts in the three and six months ended December 30, 2011, respectively. The fair value and balance sheet location of such contracts were as follows (in millions):

Asset Derivatives

Liability Derivatives

Dec. 28, 2012

Jun. 29, 2012

Dec. 28, 2012

Jun. 29, 2012

Derivatives Designated as

Hedging Instruments

Balance Sheet
Location

Fair
Value

Balance Sheet
Location

Fair
Value

Balance Sheet
Location

Fair
Value

Balance Sheet
Location

Fair
Value

Foreign exchange contracts

Other current assets

Accrued expenses

The impact on the condensed consolidated financial statements was as follows (in millions):


	Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives									Location of Gain (Loss) Reclassified		Amount of Gain (Loss) Reclassified From Accumulated OCI into Income
Derivatives in Cash Flow Hedging Relationships	Three Months Ended		Six Months Ended		Three Months Ended		Six Months Ended			from Accumulated OCI into Income		Three Months Ended		Six Months Ended		Three Months Ended			Six Months Ended
Derivatives in Cash Flow Hedging Relationships	Dec. 28, 2012				Dec. 30, 2011					from Accumulated OCI into Income		Dec. 28, 2012				Dec. 30, 2011
Foreign exchange contracts	$	14	$	45	$	2	$	(6	)		Cost of revenue	$	16	$	19	$	(8	)	$	3

The total net realized transaction and foreign exchange contract currency gains and losses were not material to the condensed consolidated financial statements during the three and six months ended December 28, 2012 and December 30, 2011.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624177-113959

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-Publisher FASB
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7668309&loc=d3e80784-113994

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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41641-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
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-Publisher FASB
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stock-Based Compensation

6 Months Ended

Dec. 28, 2012

Stock-Based Compensation

9. Stock-Based Compensation

Stock-based Compensation Expense

During the three and six months ended December 28, 2012, the Company recognized in expense $24 million and $49 million, respectively, for stock-based compensation related to the vesting of options issued under the Company’s stock option plans and the ESPP, which includes $2 million of accelerated expense associated with the employee termination benefits and other charges disclosed in Note 12 below. In the prior-year periods, the Company recognized in expense $15 million and $24 million, respectively, for stock-based compensation related to the vesting of options issued under the Company’s stock option plans and the ESPP. As of December 28, 2012, total compensation cost related to unvested stock options and ESPP rights issued to employees but not yet recognized was $140 million and will be amortized on a straight-line basis over a weighted average service period of approximately 2.4 years.

For purposes of this footnote, references to RSUs include performance stock unit awards (“PSUs”). During the three and six months ended December 28, 2012, the Company recognized in expense $12 million and $25 million, respectively, related to the vesting of awards of RSUs compared to $9 million and $17 million in the respective prior-year periods. As of December 28, 2012, the aggregate unamortized fair value of all unvested RSUs was $95 million, which will be recognized on a straight-line basis over a weighted average vesting period of approximately 1.6 years.

During the three and six months ended December 28, 2012, the Company recognized in expense $4 million and $16 million, respectively, related to adjustments to market value as well as the vesting of cash-settled stock appreciation rights (“SARs”). As of December 28, 2012, the Company had a total liability of $33 million related to SARs included in accrued liabilities in the condensed consolidated balance sheet. As of December 28, 2012, total compensation cost related to unvested SARs issued to employees but not yet recognized was $16 million and will be accrued on a straight-line basis over a weighted average service period of approximately 1.3 years.

Stock Option Activity

The following table summarizes activity under the Company’s stock option plans (in millions, except per share amounts and remaining contractual lives):


	Number of Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Options outstanding at June 29, 2012		15.8		$	21.89
Granted		3.0			43.10
Exercised		(2.2	)		16.18
Canceled or expired		(0.1	)		23.00

Options outstanding at September 28, 2012		16.5		$	26.52
Granted		0.1			37.04
Exercised		(1.2	)		18.56
Canceled or expired		(0.1	)		33.88

Options outstanding at December 28, 2012		15.3		$	27.14		4.6	$	224

Exercisable at December 28, 2012		6.0		$	23.22		3.2	$	110

Vested and expected to vest after December 28, 2012		15.1		$	27.00		4.6	$	223

If an option has an exercise price that is less than the quoted price of the Company’s common stock at the particular time, the aggregate intrinsic value of that option at that time is calculated based on the difference between the exercise price of the underlying options and the quoted price of the Company’s common stock at that time. As of December 28, 2012, the Company had options outstanding to purchase an aggregate of 12.3 million shares with an exercise price below the quoted price of the Company’s stock on that date resulting in an aggregate intrinsic value of $224 million at that date. During the three and six months ended December 28, 2012, the aggregate intrinsic value of options exercised under the Company’s stock option plans was $25 million and $79 million, respectively, determined as of the date of exercise, compared to $3 million and $8 million in the respective prior-year periods.

SARs Activity

The share-based compensation liability for SARs is recognized for the portion of fair value for which service has been rendered at the reporting date. The share-based liability is remeasured at each reporting date, using a binomial option-pricing model, through the requisite service period. As of December 28, 2012, 1.4 million SARs were outstanding with a weighted average exercise price of $7.82. There were no SARs granted and all other SARs activity was immaterial to the condensed consolidated financial statements for the three and six months ended December 28, 2012.

Fair Value Disclosure — Binomial Model

The fair value of stock options granted is estimated using a binomial option-pricing model. The binomial model requires the input of highly subjective assumptions. The Company uses historical data to estimate exercise, employee termination, and expected stock price volatility within the binomial model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The fair value of stock options granted was estimated using the following weighted average assumptions:


	Three Months Ended		Six Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 28, 2012	Dec. 30, 2011
Suboptimal exercise factor	1.92	1.80	1.90	1.81
Range of risk-free interest rates	0.16% to 1.18%	0.12% to 1.35%	0.16% to 1.18%	0.12% to 1.43%
Range of expected stock price volatility	0.42 to 0.52	0.45 to 0.55	0.42 to 0.53	0.41 to 0.55
Weighted average expected volatility	0.47	0.49	0.49	0.48
Post-vesting termination rate	2.41%	2.48%	2.09%	2.62%
Dividend yield	2.41%	—	2.58%	—
Fair value	$13.08	$10.79	$15.56	$11.90

The weighted average expected term of the Company’s stock options granted during the three and six months ended December 28, 2012 was 4.2 years and 4.0 years, respectively, compared to 4.9 years in both the respective prior-year periods.

Fair Value Disclosure — Black-Scholes-Merton Model

The fair value of ESPP purchase rights issued is estimated at the date of grant of the purchase rights using the Black-Scholes-Merton option-pricing model. The Black-Scholes-Merton option-pricing model requires the input of highly subjective assumptions such as the expected stock price volatility and the expected period until options are exercised. Purchase rights under the current ESPP provisions are granted on either June 1st or December 1st. ESPP activity was immaterial to the condensed consolidated financial statements for the three and six months ended December 28, 2012 and December 30, 2011.

RSU Activity

The following table summarizes RSU activity (in millions, except weighted average grant date fair value):


	Number of Shares			Weighted Average Grant-Date Fair Value
RSUs outstanding at June 29, 2012		3.7		$	33.19
Granted		1.5			43.06
Vested		(0.5	)		35.32

RSUs outstanding at September 28, 2012		4.7		$	36.12
Granted		0.1			35.56
Vested		(0.1	)		30.18

RSUs outstanding at December 28, 2012		4.7		$	35.24

Expected to vest after December 28, 2012		4.5		$	35.24

The fair value of each RSU is the market price of the Company’s stock at the date of grant. RSUs are generally payable in an equal number of shares of the Company’s common stock at the time of vesting of the units. The grant-date fair value of the shares underlying the RSU awards at the date of grant was $3 million and $68 million for the three and six months ended December 28, 2012, respectively. These amounts are being recognized to expense over the corresponding vesting periods. For purposes of valuing these awards, the Company has assumed a forfeiture rate of 3.4%, based on a historical analysis indicating forfeitures for these types of awards. The effect of the PSU activity was immaterial to the Company’s condensed consolidated financial statements for the three and six months ended December 28, 2012.

Dividends

On September 13, 2012, the Company announced that its Board of Directors had authorized the adoption of a quarterly cash dividend policy. Under the cash dividend policy, holders of the Company’s common stock will receive dividends when and as declared by the Company’s Board of Directors. On December 3, 2012 and September 13, 2012, the Board of Directors declared a cash dividend of $0.25 per share of the Company’s common stock, which was paid on December 26, 2012 and October 15, 2012, respectively, to shareholders of record as of the close of business on December 14, 2012 and September 28, 2012, respectively. The Company may modify, suspend or cancel its cash dividend policy in any manner and at any time.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Topic 718
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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Pensions and Other Post-retirement Benefit Plans

6 Months Ended

Dec. 28, 2012

Pensions and Other Post-retirement Benefit Plans

10. Pensions and Other Post-retirement Benefit Plans

The Company’s principal pension and other post-retirement benefit plans are in Japan. All pension and other post-retirement benefit plans outside of the Company’s Japanese plans were immaterial to the Company’s condensed consolidated financial statements. The expected long-term rate of return on the Japanese plan assets is 3.5%.

The following table presents the unfunded status of the benefit obligations and Japanese plan assets as of December 28, 2012 and June 29, 2012 (in millions):


	Dec. 28, 2012			Jun. 29, 2012
Benefit obligation	$	270		$	286
Fair value of plan assets		(161	)		(167	)

Unfunded status	$	109		$	119

The following table presents the unfunded amounts as recognized on the Company’s condensed consolidated balance sheets as of December 28, 2012 and June 29, 2012 (in millions):


	Dec. 28, 2012		Jun. 29, 2012
Current liabilities	$	3	$	3
Non-current liabilities		106		116

Net amount recognized	$	109	$	119

The net periodic benefit cost of the Company’s pension plans was not material to the condensed consolidated financial statements for the three and six months ended December 28, 2012. The Company’s expected employer contribution for its Japanese defined benefit pension plans is $14 million in fiscal 2013.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Implementation Guide (Q and A)
-Number FAS88
-Paragraph 63
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 106
-Paragraph 518
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Emerging Issues Task Force (EITF)
-Number 03-2
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 87
-Paragraph 264
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph q
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph h
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 8
-Subparagraph m
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 7, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS106-2
-Paragraph 20, 21, 22
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 30
-Paragraph 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

HGST Acquisition

6 Months Ended

Dec. 28, 2012

HGST Acquisition

11. HGST Acquisition

On the Closing Date, the Company completed its acquisition (the “Acquisition”) of all the issued and outstanding paid-up share capital of HGST from Hitachi Ltd. (“Hitachi”). HGST is a developer and manufacturer of storage devices. As a result of the Acquisition, HGST became an indirect wholly owned subsidiary of the Company. The preliminary, aggregate purchase price of the Acquisition was approximately $4.7 billion, which was paid on the Closing Date and funded with $3.7 billion of existing cash and cash from new debt, as well as 25 million newly issued shares of the Company’s common stock with a fair value of $877 million. The fair value of the newly issued shares of the Company’s common stock was determined based on the closing market price of the Company’s shares of common stock on the date of the Acquisition, less a 10% discount for lack of marketability as the shares issued are subject to a restriction that limits their trade or transfer for one year from the Closing Date.

The total preliminary purchase price for HGST was approximately $4.7 billion and was comprised of (in millions):


	Mar. 8, 2012
Acquisition of all issued and outstanding paid-up share capital of HGST	$	4,575
Fair value of stock options, restricted stock-based awards and SARs assumed		102

Total	$	4,677

The purchase price consideration remains subject to adjustment based on resolution of a post-closing assumed pension adjustment. The Company identified and recorded the assets acquired and liabilities assumed at their estimated fair values at the Closing Date, and allocated the remaining value of approximately $1.8 billion to goodwill. The purchase price consideration originally included preliminary estimates of the working capital assets acquired and liabilities assumed. During the three months ended December 28, 2012, the Company finalized the post-closing adjustment for changes in the working capital of HGST which decreased the purchase price by $37 million. The values assigned to certain acquired assets and liabilities are preliminary, are based on information available as of the date of this Quarterly Report on Form 10-Q, and may be adjusted as further information becomes available during the measurement period of up to 12 months from the date of the Acquisition. The primary areas of the preliminary purchase price allocation that are not yet finalized due to information that may become available subsequently and may result in changes in the values allocated to various assets and liabilities include contingencies and income taxes. Any changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in material adjustments to goodwill. The preliminary purchase price allocation was as follows (in millions):


	Mar. 8, 2012
Tangible assets acquired and liabilities assumed:
Cash and cash equivalents	$	194
Accounts receivable		1,290
Inventories		721
Other current assets		219
Property, plant and equipment		1,813
Other non-current assets		103
Accounts payable		(841	)
Accrued liabilities		(594	)
Debt assumed		(585	)
Pension and other post-retirement benefit liabilities		(130	)
Other liabilities		(102	)
Intangible assets		833
Goodwill		1,756

Total	$	4,677

During the three months ended December 28, 2012, the Company recorded a $37 million decrease in goodwill as a result of the completion of the post-closing adjustment for changes in the working capital of HGST. During the three months ended September 28, 2012, the Company recorded a $31 million net decrease in goodwill, consisting of a $32 million increase in deferred income taxes, offset by a $1 million decrease in intangible assets. The adjustment to amortization expense as a result of these changes was not material to the Company’s condensed consolidated financial statements.

Toshiba Transactions

In connection with the regulatory approval process, the Company announced on May 15, 2012 that it had closed a transaction with Toshiba to divest certain 3.5-inch hard drive assets and to purchase Toshiba Storage Device (Thailand) Company Limited, a wholly-owned subsidiary of Toshiba which manufactured hard drives prior to the recent Thailand flooding. The net impact of these two transactions was immaterial to the Company’s condensed consolidated financial statements.

Maintenance of Competitive Requirement

In connection with the regulatory approval process of the Acquisition, the Company agreed to certain conditions required by the Ministry of Commerce of the People’s Republic of China (“MOFCOM”), including adopting measures to maintain HGST as an independent competitor until MOFCOM agrees otherwise (with the minimum period being two years). The Company has worked closely with MOFCOM to finalize an operations plan that outlines in more detail the conditions of the competitive requirement.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Topic 805
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-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 805
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e7000-128479

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-Name Accounting Standards Codification
-Topic 805
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=7488404&loc=d3e6996-128479

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=7659399&loc=d3e1383-128463

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph F4
-Subparagraph e
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Employee Termination Benefits and Other Charges

6 Months Ended

Dec. 28, 2012

Employee Termination Benefits and Other Charges

12. Employee Termination Benefits and Other Charges

During the three and six months ended December 28, 2012, the Company incurred charges to realign its operations with anticipated market demand. Total charges of $41 million and $67 million, respectively, were classified as operating expenses and included in employee termination benefits and other charges in the condensed consolidated statements of income for the three and six months ended December 28, 2012. The following table summarizes the Company’s employee termination benefits and other charges for the three and six months ended December 28, 2012 (in millions):


	Employee Termination Benefits			Impairment of Assets			Contract and Other Termination Costs			Total
Accrual at June 29, 2012	$	—		$	—		$	16		$	16
Charges		25			—			1			26
Cash payments		(22	)		—			(1	)		(23	)

Accrual at September 28, 2012	$	3		$	—		$	16		$	19

Charges		26			12			3			41
Cash payments		(13	)		—			(11	)		(24	)
Non-cash charges		(3	)		(12	)		—			(15	)

Accrual at December 28, 2012	$	13		$	—		$	8		$	21

The employee termination benefits relate to headcount reductions at various worldwide locations. The impairment of assets relates to machinery and equipment and an intangible asset at various locations worldwide. The liabilities for employee termination benefits and contract and other termination costs are expected to be relieved by the fourth quarter of fiscal 2013.

Recent Accounting Pronouncements

6 Months Ended

Dec. 28, 2012

Recent Accounting Pronouncements

13. Recent Accounting Pronouncements

In June 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2011-05 “Presentation of Comprehensive Income” (“ASU 2011-05”). The new standard requires that all non-owner changes in shareholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but continuous statements. If presented in two separate statements, the first statement should present total net income and its components followed immediately by a second statement of total other comprehensive income, its components and the total comprehensive income. In December 2011, the FASB deferred certain changes in ASU 2011-05 that relate to the presentation of reclassification adjustments. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2011. The Company adopted this pronouncement in its first quarter of fiscal 2013. The adoption of ASU 2011-05 resulted in an additional financial statement which increases the prominence of items reported in other comprehensive income but did not have an impact on the Company’s financial position or results of operations.

In September 2011, the FASB issued ASU 2011-08, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2011-08”). The new standard permits an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired as a basis for determining whether it is necessary to perform the quantitative impairment test in accordance with Accounting Standards Codification 350-30, “Intangibles-Goodwill and Other-General Intangibles Other than Goodwill.” The new standard is effective for fiscal years beginning after December 15, 2011. The Company adopted this pronouncement in its first quarter of fiscal 2013. The adoption of ASU 2011-08 did not have a material impact to the Company’s condensed consolidated financial statements in the first quarter of fiscal 2013.

Subsequent Events

6 Months Ended

Dec. 28, 2012

Subsequent Events

14. Subsequent Events

Voluntary Separation Program

On January 23, 2013, the Company announced a voluntary separation program (the “Program”) for the U.S.-based employees of its WD subsidiary. The Program is intended to help realign the Company’s cost structure with a softer demand environment. As the Company does not know the number or job levels of employees that will participate in the Program, at this time, the Company is unable to estimate the charges it will incur in connection with the Program, although it expects charges will consist of cash severance and other related termination benefits. The Company expects to complete the Program by the first quarter of fiscal 2014.

American Taxpayer Relief Act of 2012

On January 2, 2013, the American Taxpayer Relief Act of 2012 (“the Act”) was signed into law. One of the provisions of the Act provides a retroactive extension of the research and experimentation tax credit (“R&D credit”) through December 31, 2013, which had expired on December 31, 2011. The Company expects that it will recognize a tax benefit of between $30 and $40 million during the third quarter of fiscal 2013 as a result of the retroactive extension of the R&D credit.

Basis of Presentation (Policies)	6 Months Ended
Basis of Presentation (Policies)	Dec. 28, 2012
Use of estimates and assumption	Company management has made estimates and assumptions relating to the reporting of certain assets and liabilities in conformity with U.S. GAAP. These estimates and assumptions have been applied using methodologies that are consistent throughout the periods presented. However, actual results could differ materially from these estimates.

Supplemental Financial Statement Data (Tables)

6 Months Ended

Dec. 28, 2012

Inventories; Property, Plant and Equipment; and Other Intangible Assets

Inventories; Property, Plant and Equipment; and Other Intangible Assets


	Dec. 28, 2012			Jun. 29, 2012
	(in millions)
Inventories:
Raw materials and component parts	$	193		$	245
Work-in-process		581			552
Finished goods		430			413

Total inventories	$	1,204		$	1,210

Property, plant and equipment:
Property, plant and equipment	$	7,490		$	7,173
Accumulated depreciation		(3,552	)		(3,106	)

Property, plant and equipment, net	$	3,938		$	4,067

Other intangible assets:
Other intangible assets	$	948		$	933
Accumulated amortization		(239	)		(134	)

Other intangible assets, net	$	709		$	799

Changes in Accrual Warranty

Changes in the warranty accrual were as follows (in millions):


	Three Months Ended						Six Months Ended
	Dec. 28, 2012			Dec. 30, 2011			Dec. 28, 2012			Dec. 30, 2011
Warranty accrual, beginning of period	$	230		$	173		$	260		$	170
Charges to operations		44			24			90			69
Utilization		(51	)		(42	)		(111	)		(84	)
Changes in estimate related to pre-existing warranties		(12	)		1			(28	)		1

Warranty accrual, end of period	$	211		$	156		$	211		$	156

Income per Common Share (Tables)

6 Months Ended

Dec. 28, 2012

Computation of Basic and Diluted Income Per Common Share

The following table illustrates the computation of basic and diluted income per common share (in millions, except per share data):


	Three Months Ended				Six Months Ended
	Dec. 28, 2012		Dec. 30, 2011		Dec. 28, 2012		Dec. 30, 2011
Net income	$	335	$	145	$	854	$	384

Weighted average shares outstanding:
Basic		242		234		244		234
Employee stock options and other		4		3		5		3

Diluted		246		237		249		237

Income per common share:
Basic	$	1.38	$	0.62	$	3.50	$	1.64

Diluted	$	1.36	$	0.61	$	3.43	$	1.62

Anti-dilutive potential common shares excluded*		7		7		6		5

*	For purposes of computing diluted income per common share, certain potentially dilutive securities have been excluded from the calculation because their effect would have been anti-dilutive.

Fair Value Measurements (Tables)

6 Months Ended

Dec. 28, 2012

Financial Assets and Liabilities Measured at Fair Value on Recurring Basis


	Fair Value Measurements at Reporting Date Using
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	951	$	—	$	—	$	951
Foreign exchange contracts		—		15		—		15
Auction-rate securities		—		—		14		14

Total assets at fair value	$	951	$	15	$	14	$	980

Liabilities:
Foreign exchange contracts		—		3		—		3

Total liabilities at fair value	$	—	$	3	$	—	$	3


	Fair Value Measurements at Reporting Date Using
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	721	$	—	$	—	$	721
U.S. Treasury securities		—		61		—		61
U.S. Government agency securities		—		62		—		62

Total cash equivalents		721		123		—		844

Foreign exchange contracts		—		1		—		1
Auction-rate securities		—		—		14		14

Total assets at fair value	$	721	$	124	$	14	$	859

Liabilities:
Foreign exchange contracts		—		22		—		22

Total liabilities at fair value	$	—	$	22	$	—	$	22

Foreign Exchange Contracts (Tables)

6 Months Ended

Dec. 28, 2012

Fair Value and Balance Sheet Location

The fair value and balance sheet location of such contracts were as follows (in millions):

Asset Derivatives

Liability Derivatives

Dec. 28, 2012

Jun. 29, 2012

Dec. 28, 2012

Jun. 29, 2012

Derivatives Designated as

Hedging Instruments

Balance Sheet
Location

Fair
Value

Balance Sheet
Location

Fair
Value

Balance Sheet
Location

Fair
Value

Balance Sheet
Location

Fair
Value

Foreign exchange contracts

Other current assets

Accrued expenses

Gains (Losses) of Derivatives in Cash Flow Hedging Relationships

The impact on the condensed consolidated financial statements was as follows (in millions):


	Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives									Location of Gain (Loss) Reclassified		Amount of Gain (Loss) Reclassified From Accumulated OCI into Income
Derivatives in Cash Flow Hedging Relationships	Three Months Ended		Six Months Ended		Three Months Ended		Six Months Ended			from Accumulated OCI into Income		Three Months Ended		Six Months Ended		Three Months Ended			Six Months Ended
Derivatives in Cash Flow Hedging Relationships	Dec. 28, 2012				Dec. 30, 2011					from Accumulated OCI into Income		Dec. 28, 2012				Dec. 30, 2011
Foreign exchange contracts	$	14	$	45	$	2	$	(6	)		Cost of revenue	$	16	$	19	$	(8	)	$	3

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References + Details

Stock-Based Compensation (Tables)

6 Months Ended

Dec. 28, 2012

Stock Option Activity

The following table summarizes activity under the Company’s stock option plans (in millions, except per share amounts and remaining contractual lives):


	Number of Shares			Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value
Options outstanding at June 29, 2012		15.8		$	21.89
Granted		3.0			43.10
Exercised		(2.2	)		16.18
Canceled or expired		(0.1	)		23.00

Options outstanding at September 28, 2012		16.5		$	26.52
Granted		0.1			37.04
Exercised		(1.2	)		18.56
Canceled or expired		(0.1	)		33.88

Options outstanding at December 28, 2012		15.3		$	27.14		4.6	$	224

Exercisable at December 28, 2012		6.0		$	23.22		3.2	$	110

Vested and expected to vest after December 28, 2012		15.1		$	27.00		4.6	$	223

Fair Value of Stock Options Granted

The fair value of stock options granted was estimated using the following weighted average assumptions:


	Three Months Ended		Six Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 28, 2012	Dec. 30, 2011
Suboptimal exercise factor	1.92	1.80	1.90	1.81
Range of risk-free interest rates	0.16% to 1.18%	0.12% to 1.35%	0.16% to 1.18%	0.12% to 1.43%
Range of expected stock price volatility	0.42 to 0.52	0.45 to 0.55	0.42 to 0.53	0.41 to 0.55
Weighted average expected volatility	0.47	0.49	0.49	0.48
Post-vesting termination rate	2.41%	2.48%	2.09%	2.62%
Dividend yield	2.41%	—	2.58%	—
Fair value	$13.08	$10.79	$15.56	$11.90

Restricted Stock Unit

The following table summarizes RSU activity (in millions, except weighted average grant date fair value):


	Number of Shares			Weighted Average Grant-Date Fair Value
RSUs outstanding at June 29, 2012		3.7		$	33.19
Granted		1.5			43.06
Vested		(0.5	)		35.32

RSUs outstanding at September 28, 2012		4.7		$	36.12
Granted		0.1			35.56
Vested		(0.1	)		30.18

RSUs outstanding at December 28, 2012		4.7		$	35.24

Expected to vest after December 28, 2012		4.5		$	35.24

Pensions and Other Post-retirement Benefit Plans (Tables)

6 Months Ended

Dec. 28, 2012

Unfunded Status of Benefit Obligations and Plan Assets

The following table presents the unfunded status of the benefit obligations and Japanese plan assets as of December 28, 2012 and June 29, 2012 (in millions):


	Dec. 28, 2012			Jun. 29, 2012
Benefit obligation	$	270		$	286
Fair value of plan assets		(161	)		(167	)

Unfunded status	$	109		$	119

Unfunded Amounts Recognized on Consolidate Balance Sheets

The following table presents the unfunded amounts as recognized on the Company’s condensed consolidated balance sheets as of December 28, 2012 and June 29, 2012 (in millions):


	Dec. 28, 2012		Jun. 29, 2012
Current liabilities	$	3	$	3
Non-current liabilities		106		116

Net amount recognized	$	109	$	119

- Definition

Tabular disclosure of one or more of the entity's defined benefit pension plans or one or more other defined benefit postretirement plans, separately for pension plans and other postretirement benefit plans including the entity's schedule of fair value of plan assets for defined benefit or other postretirement plans.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2439-114920

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2417-114920

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2410-114920

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 55
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=21916443&loc=d3e4179-114921

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 158
-Paragraph 4, 7, 16, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5, 6, 7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

HGST Acquisition (Tables)

6 Months Ended

Dec. 28, 2012

Preliminary Purchase Price of Business Combination

The total preliminary purchase price for HGST was approximately $4.7 billion and was comprised of (in millions):


	Mar. 8, 2012
Acquisition of all issued and outstanding paid-up share capital of HGST	$	4,575
Fair value of stock options, restricted stock-based awards and SARs assumed		102

Total	$	4,677

Preliminary Purchase Price Allocation

The preliminary purchase price allocation was as follows (in millions):


	Mar. 8, 2012
Tangible assets acquired and liabilities assumed:
Cash and cash equivalents	$	194
Accounts receivable		1,290
Inventories		721
Other current assets		219
Property, plant and equipment		1,813
Other non-current assets		103
Accounts payable		(841	)
Accrued liabilities		(594	)
Debt assumed		(585	)
Pension and other post-retirement benefit liabilities		(130	)
Other liabilities		(102	)
Intangible assets		833
Goodwill		1,756

Total	$	4,677

Employee Termination Benefits and Other Charges (Tables)

6 Months Ended

Dec. 28, 2012

Employee Termination Benefits and Other Charges

The following table summarizes the Company’s employee termination benefits and other charges for the three and six months ended December 28, 2012 (in millions):


	Employee Termination Benefits			Impairment of Assets			Contract and Other Termination Costs			Total
Accrual at June 29, 2012	$	—		$	—		$	16		$	16
Charges		25			—			1			26
Cash payments		(22	)		—			(1	)		(23	)

Accrual at September 28, 2012	$	3		$	—		$	16		$	19

Charges		26			12			3			41
Cash payments		(13	)		—			(11	)		(24	)
Non-cash charges		(3	)		(12	)		—			(15	)

Accrual at December 28, 2012	$	13		$	—		$	8		$	21

Supplemental Financial Statement Data - Inventories; Property, Plant and Equipment; and Other Intangible Assets (Detail) - USD ($) $ in Millions	Dec. 28, 2012	Jun. 29, 2012
Inventories:
Raw materials and component parts	$ 193	$ 245
Work-in-process	581	552
Finished goods	430	413
Total inventories	1,204	1,210
Property, plant and equipment:
Property, plant and equipment	7,490	7,173
Accumulated depreciation	(3,552)	(3,106)
Property, plant and equipment, net	3,938	4,067
Other intangible assets:
Other intangible assets	948	933
Accumulated amortization	(239)	(134)
Other intangible assets, net	$ 709	$ 799

Supplemental Financial Statement Data - Additional Information (Detail) $ in Millions	3 Months Ended
	Dec. 28, 2012 USD ($) yr	Jun. 29, 2012 USD ($)
Product Warranty [Line Items]
Product warranty, Minimum	1
Product warranty, Maximum	5
Long-term portion of the warranty accrual classified in other liabilities \| $	$ 80	$ 89

Supplemental Financial Statement Data - Changes in Warranty Accrual (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 28, 2012	Dec. 30, 2011
Product Warranty Accrual [Line Items]
Warranty accrual, beginning of period	$ 230	$ 173	$ 260	$ 170
Charges to operations	44	24	90	69
Utilization	(51)	(42)	(111)	(84)
Changes in estimate related to pre-existing warranties	(12)	1	(28)	1
Warranty accrual, end of period	$ 211	$ 156	$ 211	$ 156

Income Per Common Share - Computation of Basic and Diluted Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 28, 2012	Dec. 30, 2011
Net Income Loss Per Common Share [Line Items]
Net income	$ 335	$ 145	$ 854	$ 384
Weighted average shares outstanding:
Basic	242	234	244	234
Employee stock options and other	4	3	5	3
Diluted	246	237	249	237
Income per common share:
Basic	$ 1.38	$ 0.62	$ 3.50	$ 1.64
Diluted	$ 1.36	$ 0.61	$ 3.43	$ 1.62
Anti-dilutive potential common shares excluded*	7	7	6	5

Debt - Additional Information (Detail) $ in Millions	3 Months Ended
Debt - Additional Information (Detail) $ in Millions	Dec. 28, 2012 USD ($)
Debt Instrument [Line Items]
Total unsecured loan under credit facility	$ 2,800
Interest Rate of Borrowing Under Credit Facility	2.21%
2013	$ 230
2014	230
2015	230
2016	230
Remaining balance term loan facility there after	2,100
Remaining balance term loan facility there after	$ 1,300
Maturity date of remaining term loan facility	Mar. 08, 2017
Available future borrowings of revolving credit facility	$ 500
Term Loan [Member]
Debt Instrument [Line Items]
Total unsecured loan under credit facility	2,300
Line of credit facility additional borrowing capacity	500
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit Facility Revolving Loan	$ 500

Legal proceedings - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 28, 2012	Oct. 12, 2012	Jan. 23, 2012	Nov. 18, 2011
Loss Contingencies [Line Items]
Issued interim award against losses				$ 525.0
Statutory rate specified as pre-award interest rate	10.00%
Amount of final award adding pre-award interest issued by the arbitrator			$ 105.4
Amount of total award issued by the arbitrator			$ 630.4
Amount of total award issued by arbitrator vacated		$ 630.4

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Dec. 28, 2011	Dec. 28, 2012	Dec. 28, 2011
Income Tax Disclosure [Line Items]
Income tax provision	$ 133,000,000	$ 15,000,000	$ 192,000,000	$ 34,000,000
Expiration date of tax holiday in Malaysia,Philippines,Singapore and Thailand			From 2013 through 2025
Charge related to passage of California Proposition 39	88		$ 88
Increase (Decrease) in liability for unrecognized tax benefits			(4,000,000)
Unrecognized tax benefits	276,000,000		276,000,000
Reasonably possible unrecognized tax benefits	54,000,000		54,000,000
Western Digital Corporation [Member]
Income Tax Disclosure [Line Items]
Estimated impact of proposed IRS adjustments on Pre-tax income	$ 970,000,000		$ 970,000,000

- Definition

The sum of the current income tax expense or benefit and the deferred income tax expense or benefit pertaining to pretax Income or Loss from continuing operations; income tax expense or benefit may include interest and penalties on tax uncertainties based on the entity's accounting policy.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a),(b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 45
-Paragraph 25
-URI http://asc.fasb.org/extlink&oid=21917399&loc=d3e32247-109318

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32672-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45, 46
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 48
-Paragraph 15, 16, 19
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions	Dec. 28, 2012	Jun. 29, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		$ 844
Total assets at fair value	$ 980	859
Total liabilities at fair value	3	22
Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	951	721
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		61
US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		62
Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign exchange contracts	15	1
Foreign exchange contracts	3	22
Auction Rate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Auction-rate securities	14	14
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		721
Total assets at fair value	951	721
Total liabilities at fair value	0	0
Fair Value, Inputs, Level 1 [Member] \| Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	951	721
Fair Value, Inputs, Level 1 [Member] \| US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		0
Fair Value, Inputs, Level 1 [Member] \| US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		0
Fair Value, Inputs, Level 1 [Member] \| Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign exchange contracts	0	0
Foreign exchange contracts	0	0
Fair Value, Inputs, Level 1 [Member] \| Auction Rate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Auction-rate securities	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		123
Total assets at fair value	15	124
Total liabilities at fair value	3	22
Fair Value, Inputs, Level 2 [Member] \| Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Fair Value, Inputs, Level 2 [Member] \| US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		61
Fair Value, Inputs, Level 2 [Member] \| US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		62
Fair Value, Inputs, Level 2 [Member] \| Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign exchange contracts	15	1
Foreign exchange contracts	3	22
Fair Value, Inputs, Level 2 [Member] \| Auction Rate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Auction-rate securities	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		0
Total assets at fair value	14	14
Total liabilities at fair value	0	0
Fair Value, Inputs, Level 3 [Member] \| Money Market Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Fair Value, Inputs, Level 3 [Member] \| US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		0
Fair Value, Inputs, Level 3 [Member] \| US Government Agencies Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents		0
Fair Value, Inputs, Level 3 [Member] \| Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign exchange contracts	0	0
Foreign exchange contracts	0	0
Fair Value, Inputs, Level 3 [Member] \| Auction Rate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Auction-rate securities	$ 14	$ 14

Fair Value Measurements - Additional Information (Detail)	6 Months Ended
	Dec. 28, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Maturity of auction rate securities	Dates through 2050

Foreign Exchange Contracts - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 28, 2012	Dec. 30, 2011
Contract Maturity Dates	Less than 12 months		Less than 12 months
Unrealized gains expected to be reclassified into earnings	$ 10		$ 10
Foreign exchange contracts opened during the period by company	647	$ 391	1,400	$ 1,300
Foreign exchange contracts closed during the period by company	$ 923	$ 815	$ 2,000	$ 1,700

Foreign Exchange Contracts - Fair Value and Balance Sheet Location of Contracts (Detail) - Designated as Hedging Instrument [Member] - Foreign Exchange Contract [Member] - USD ($) $ in Millions	Dec. 28, 2012	Jun. 29, 2012
Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivatives Designated as Hedging Instruments Fair value, Asset Derivatives	$ 15	$ 1
Accrued Expenses [Member]
Derivatives, Fair Value [Line Items]
Derivatives Designated as Hedging Instruments Fair Value, Liability Derivatives	$ 3	$ 22

Foreign Exchange Contracts - Gains (Losses) of Derivatives in Cash Flow Hedging Relationships (Detail) - Foreign Exchange Contract [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 28, 2012	Dec. 30, 2011
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives	$ 14	$ 2	$ 45	$ (6)
Cost of Sales [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain (Loss) Reclassified From Accumulated OCI into Income	$ 16	$ (8)	$ 19	$ 3

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 28, 2012	Dec. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	$ 24	$ 15	$ 49	$ 24
Employee termination benefits and other charges expense	2		2
Total compensation cost related to unvested stock options and ESPP rights issued	140		$ 140
Weighted average service period			2 years 4 months 24 days
Expense related to the vesting of restricted stock unit awards	12	9	$ 25	17
Unamortized fair value of all unvested restricted stock unit awards	95		$ 95
Weighted average vesting period			1 year 7 months 6 days
Compensation cost for cash-settled stock appreciation rights	4		$ 16
Total liability related to SARs	33		33
Total compensation cost related to unvested SARs	$ 16		$ 16
Total compensation cost, weighted average service period			1 year 3 months 18 days
Options outstanding to purchase shares with exercise price below company stock price	12.3		12.3
Options outstanding to purchase shares with exercise price below company stock price, intrinsic value	$ 224		$ 224
Aggregate intrinsic value of options exercised under the Company's stock option plan	$ 25	$ 3	$ 79	$ 8
Stock Appreciation Right outstanding, weighted average exercise price	$ 7.82		$ 7.82
Number of assumed SARs outstanding	1.4		1.4
Weighted average expected term of the Company's stock options	4 years 2 months 12 days	4 years 10 months 24 days	4 years	4 years 10 months 24 days
Grant-date fair value of the shares underlying the restricted stock awards	$ 3		$ 68
Forfeiture rate of restricted stock unit valuation assumption			3.40%
Cash dividend			$ 0.25

Stock-Based Compensation - Stock Option Activity (Detail) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2012 USD ($) yr $ / shares shares	Sep. 28, 2012 $ / shares shares	Dec. 28, 2012 USD ($) yr $ / shares shares
Options outstanding, Beginning Balance, Numbers of Shares \| shares	16.5	15.8	15.8
Granted, Number of Shares \| shares	0.1	3.0
Exercised, Number of Shares \| shares	(1.2)	(2.2)
Canceled or expired, Number of Shares \| shares	(0.1)	(0.1)
Options outstanding, Ending Balance, Numbers of Shares \| shares	15.3	16.5	15.3
Options outstanding, Beginning Balance, Weighted Average Exercise Price Per Share \| $ / shares	$ 26.52	$ 21.89	$ 21.89
Exercisable at December 28, 2012, Number of Shares \| shares	6.0		6.0
Granted, Weighted Average Exercise Price Per Share \| $ / shares	$ 37.04	43.10
Vested and expected to vest after December 28, 2012, Number of Shares \| shares	15.1		15.1
Exercised, Weighted Average Exercise Price Per Share \| $ / shares	$ 18.56	16.18
Canceled or expired, Weighted Average Exercise Price Per Share \| $ / shares	33.88	23.00
Options outstanding, Ending Balance, Weighted Average Exercise Price Per Share \| $ / shares	27.14	$ 26.52	$ 27.14
Options outstanding at December 28, 2012, Weighted Average Remaining Contractual Life (in years)			4 years 7 months 6 days
Exercisable at December 28, 2012, Weighted Average Exercise Price Per Share \| $ / shares	$ 23.22		$ 23.22
Exercisable at December 28, 2012, Weighted Average Remaining Contractual Life (in years) \| yr	3.2		3.2
Vested and expected to vest after December 28, 2012, Weighted Average Exercise Price Per Share \| $ / shares	$ 27.00		$ 27.00
Vested and expected to vest after December 28, 2012, Weighted Average Remaining Contractual Life (in years) \| yr	4.6		4.6
Options outstanding at December 28, 2012, Aggregate Intrinsic Value \| $	$ 224		$ 224
Exercisable at December 28, 2012, Aggregate Intrinsic Value \| $	110		110
Vested and expected to vest after December 28, 2012, Aggregate Intrinsic Value \| $	$ 223		$ 223

Stock-Based Compensation - Fair Value of Stock Options Granted (Detail) - $ / shares	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Dec. 30, 2011	Dec. 28, 2012	Dec. 30, 2011
Suboptimal exercise factor	1.92	1.80	1.90	1.81
Risk-free interest rates, minimum	0.16%	0.12%	0.16%	0.12%
Risk-free interest rates, maximum	1.18%	1.35%	1.18%	1.43%
Expected stock price volatility, minimum	0.42%	0.45%	0.42%	0.41%
Expected stock price volatility, maximum	0.52%	0.55%	0.53%	0.55%
Weighted average expected volatility	0.47%	0.49%	0.49%	0.48%
Post-vesting termination rate	2.41%	2.48%	2.09%	2.62%
Dividend yield	2.41%		2.58%
Fair value	$ 13.08	$ 10.79	$ 15.56	$ 11.90

Stock-Based Compensation - Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Millions	3 Months Ended
	Dec. 28, 2012	Sep. 28, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Numbers of Shares, Beginning Balance	4.7	3.7
Restricted stock, Number of share granted	0.1	1.5
Restricted stock, Number of share vested	(0.1)	(0.5)
Numbers of Shares, Ending Balance	4.7	4.7
Weighted Average Grant Date Fair Value Per Share, Beginning Balance	$ 36.12	$ 33.19
Number of share, Expected to vest after December 28, 2012	4.5
Restricted stock, Granted, Weighted Average Grant Date Fair Value Per Share	$ 35.56	43.06
Restricted stock, Vested, Weighted Average Grant Date Fair Value Per Share	30.18	35.32
Weighted Average Grant Date Fair Value Per Share, Ending Balance	35.24	$ 36.12
Weighted Average Grant Date Fair Value Per Share, Expected to vest after September 28, 2012	$ 35.24

Pensions and Other Post-retirement Benefit Plans - Additional Information (Detail) $ in Millions	6 Months Ended
	Dec. 28, 2012 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets	3.50%
Japan Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Expected contribution for pension plan	$ 14

Pensions and Other Post-retirement Benefit Plans - Unfunded Status of Benefit Obligation and Plan Assets (Detail) - Japan Pension Benefits [Member] - USD ($) $ in Millions	Dec. 28, 2012	Jun. 29, 2012
Defined Benefit Plan Disclosure [Line Items]
Benefit obligation	$ 270	$ 286
Fair value of plan assets	(161)	(167)
Unfunded status	$ 109	$ 119

- Definition

1) For defined benefit pension plans, the benefit obligation is the projected benefit obligation, which is the actuarial present value as of a date of all benefits attributed by the pension benefit formula to employee service rendered prior to that date. 2) For other postretirement defined benefit plans, the benefit obligation is the accumulated postretirement benefit obligation, which is the actuarial present value of benefits attributed to employee service rendered to a particular date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Projected Benefit Obligation
-URI http://asc.fasb.org/extlink&oid=6522206

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Accumulated Postretirement Benefit Obligation
-URI http://asc.fasb.org/extlink&oid=6503904

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 6
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph E1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Assets, usually stocks, bonds, and other investments, that have been segregated and restricted (usually in a trust) to provide benefits, at their fair value as of the measurement date. Plan assets include amounts contributed by the employer (and by employees for a contributory plan) and amounts earned from investing the contributions, less benefits paid. If a plan has liabilities other than for benefits, those non-benefit obligations may be considered as reductions of plan assets.

+ References + Details

Pensions and Other Post-retirement Benefit Plans - Unfunded Amounts Recognized on Consolidate Balance Sheet (Detail) - Japan Pension Benefits [Member] - USD ($) $ in Millions	Dec. 28, 2012	Jun. 29, 2012
Defined Benefit Plan Disclosure [Line Items]
Current liabilities	$ 3	$ 3
Non-current liabilities	106	116
Net amount recognized	$ 109	$ 119

- Definition

This represents the entire liability recognized in the balance sheet that is associated with the defined benefit plans.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915240&loc=d3e1703-114919

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.15)
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2417-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.15)
-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2410-114920

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

This represents the noncurrent liability for underfunded plans recognized in the balance sheet that is associated with the defined benefit pension plans and other postretirement defined benefit plans.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2417-114920

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915240&loc=d3e1703-114919

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e2410-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.24)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Hgst Acquisitions - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Sep. 28, 2012	Dec. 28, 2012	Mar. 08, 2012
Business Acquisition [Line Items]
Purchase price of the Acquisition				$ 4,677
Net decrease in goodwill	$ 37	$ 31
Period of measurement			12 months
Increase in deferred income tax		32
Decrease in intangible assets		$ 1
Hitachi Global Storage Technologies [Member]
Business Acquisition [Line Items]
Purchase price of the Acquisition				4,677
Portion of debt in preliminary purchase price				$ 3,700
Company newly issued common stock				25
Fair value of shares issued for acquisition				$ 877
Percentage of discount used for calculation of fair value				10.00%
Number of year of transfer restriction				1 year
Value allocated to goodwill	1,800		$ 1,800
Net decrease in goodwill	$ 37

Hgst Acquisitions - Preliminary Purchase Price of Business Combination (Detail) $ in Millions	Mar. 08, 2012 USD ($)
Business Acquisition [Line Items]
Acquisition of all issued and outstanding paid-up share capital of HGST	$ 4,575
Fair value of stock options, restricted stock-based awards and SARs assumed	102
Total	$ 4,677

Hgst Acquisitions - Preliminary Purchase Price Allocation (Detail) - Hitachi Global Storage Technologies [Member] $ in Millions	Mar. 08, 2012 USD ($)
Business Acquisition [Line Items]
Cash and cash equivalents	$ 194
Accounts receivable	1,290
Inventories	721
Other current assets	219
Property, plant and equipment	1,813
Other non-current assets	103
Accounts payable	(841)
Accrued liabilities	(594)
Debt assumed	(585)
Pension and other post-retirement benefit liabilities	(130)
Other liabilities	(102)
Intangible assets	833
Goodwill	1,756
Total	$ 4,677

Employee Termination Benefits and Other Charges - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Sep. 28, 2012	Dec. 28, 2012
Severance And Other Charges [Line Items]
Charges to realign production	$ 41	$ 26	$ 67

Employee Termination Benefits and Other Charges - Schedule of Employee Termination Benefits and Other Charges (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2012	Sep. 28, 2012	Dec. 28, 2012
Severance And Other Charges [Line Items]
Accrual, Beginning Balance	$ 19	$ 16
Charges	41	26	$ 67
Cash payments	(24)	(23)
Non-cash charges	(15)
Accrual, Ending Balance	21	19	21
employee termination benefits [Member]
Severance And Other Charges [Line Items]
Accrual, Beginning Balance	3	0
Charges	26	25
Cash payments	(13)	(22)
Non-cash charges	(3)
Accrual, Ending Balance	13	3	13
Impairment of Assets [Member]
Severance And Other Charges [Line Items]
Accrual, Beginning Balance	0	0
Charges	12	0
Cash payments	0	0
Non-cash charges	(12)
Accrual, Ending Balance	0	0	0
Contract Termination [Member]
Severance And Other Charges [Line Items]
Accrual, Beginning Balance	16	16
Charges	3	1
Cash payments	(11)	(1)
Non-cash charges	0
Accrual, Ending Balance	$ 8	$ 16	$ 8

Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] $ in Millions	6 Months Ended
	Dec. 28, 2012 USD ($)
Minimum [Member]
Subsequent Event [Line Items]
Amount of tax benefit to be recognized	$ 30
Maximum [Member]
Subsequent Event [Line Items]
Amount of tax benefit to be recognized	$ 40