Document and Entity Information
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9 Months Ended | |
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Apr. 03, 2015
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May 06, 2015
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Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 03, 2015 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | WDC | |
Entity Registrant Name | WESTERN DIGITAL CORP | |
Entity Central Index Key | 0000106040 | |
Current Fiscal Year End Date | --07-03 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 230,912,060 |
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End date of current fiscal year in the format --MM-DD. No definition available.
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This is focus fiscal period of the document report. For a first quarter 2006 quarterly report, which may also provide financial information from prior periods, the first fiscal quarter should be given as the fiscal period focus. Values: FY, Q1, Q2, Q3, Q4, H1, H2, M9, T1, T2, T3, M8, CY. No definition available.
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This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006. No definition available.
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The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements containing historical data, it is the date up through which that historical data is presented. If there is no historical data in the report, use the filing date. The format of the date is CCYY-MM-DD. No definition available.
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The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word "Other". No definition available.
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A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Indicate number of shares or other units outstanding of each of registrant's classes of capital or common stock or other ownership interests, if and as stated on cover of related periodic report. Where multiple classes or units exist define each class/interest by adding class of stock items such as Common Class A [Member], Common Class B [Member] or Partnership Interest [Member] onto the Instrument [Domain] of the Entity Listings, Instrument. No definition available.
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Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, (4) Smaller Reporting Company (Non-accelerated) or (5) Smaller Reporting Accelerated Filer. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Amount of reserve on the balance sheet as of quarter end related to the arbitration award. No definition available.
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Dollar value of issued common stock whether issued at par value, no par or stated value. Note: elements for number of common shares, par value and other disclosure concepts are in another section within stockholders' equity. No definition available.
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Dollar value of issued nonredeemable preferred stock (or preferred stock redeemable solely at the option of the issuer) whether issued at par value, no par or stated value. Note: elements for number of nonredeemable preferred shares, par value and other disclosure concepts are in another section within stockholders' equity. No definition available.
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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
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Apr. 03, 2015
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Jun. 27, 2014
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Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 5,000,000 | 5,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 450,000,000 | 450,000,000 |
Common stock, issued | 261,000,000 | 261,000,000 |
Common stock, outstanding | 231,000,000 | 234,000,000 |
Treasury stock, shares | 30,000,000 | 27,000,000 |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Apr. 03, 2015
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Mar. 28, 2014
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Apr. 03, 2015
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Mar. 28, 2014
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Income Statement [Abstract] | ||||
Revenue, net | $ 3,550 | $ 3,703 | $ 11,381 | $ 11,479 |
Cost of revenue | 2,518 | 2,627 | 8,090 | 8,148 |
Gross margin | 1,032 | 1,076 | 3,291 | 3,331 |
Operating expenses: | ||||
Research and development | 402 | 418 | 1,265 | 1,235 |
Selling, general and administrative | 199 | 201 | 583 | 559 |
Charges related to arbitration award | 0 | 13 | 15 | 39 |
Employee termination, asset impairment and other charges | 10 | 25 | 72 | 59 |
Total operating expenses | 611 | 657 | 1,935 | 1,892 |
Operating income | 421 | 419 | 1,356 | 1,439 |
Other income (expense): | ||||
Interest and other income | 3 | 4 | 11 | 10 |
Interest and other expense | (12) | (17) | (37) | (44) |
Total other expense, net | (9) | (13) | (26) | (34) |
Income before income taxes | 412 | 406 | 1,330 | 1,405 |
Income tax provision | 28 | 31 | 85 | 105 |
Net income | $ 384 | $ 375 | $ 1,245 | $ 1,300 |
Income per common share: | ||||
Basic | $ 1.66 | $ 1.60 | $ 5.34 | $ 5.51 |
Diluted | $ 1.63 | $ 1.55 | $ 5.23 | $ 5.37 |
Weighted average shares outstanding: | ||||
Basic | 231 | 235 | 233 | 236 |
Diluted | 236 | 242 | 238 | 242 |
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Apr. 03, 2015
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Mar. 28, 2014
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Apr. 03, 2015
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Mar. 28, 2014
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 384 | $ 375 | $ 1,245 | $ 1,300 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized gains (losses) on cash flow hedges | 29 | 45 | (15) | 31 |
Other comprehensive income (loss) | 29 | 45 | (15) | 31 |
Total comprehensive income | $ 413 | $ 420 | $ 1,230 | $ 1,331 |
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Basis of Presentation
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9 Months Ended |
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Apr. 03, 2015
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Accounting Policies [Abstract] | |
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 27, 2014. 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 27, 2014. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year. The Company's fiscal year ends on the Friday nearest to June 30 and typically consists of 52 weeks. Approximately every six years, the Company reports a 53-week fiscal year to align its fiscal year with the foregoing policy. The Company's fiscal third quarters ended April 3, 2015 and March 28, 2014 both consisted of 13 weeks. Fiscal year 2015 will be comprised of 53 weeks and will end on July 3, 2015. 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. |
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Supplemental Financial Statement Data
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Apr. 03, 2015
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Financial Statement Data | 2. Supplemental Financial Statement Data Inventories; Property, Plant and Equipment; and Other Intangible Assets
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 profit 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):
The long-term portion of the warranty accrual classified in other liabilities was $65 million as of April 3, 2015 and $63 million as of June 27, 2014. Investments The following table summarizes, by major type, the fair value and cost basis of the Company’s investments as of April 3, 2015 (in millions):
The fair value of the Company’s investments classified as available-for-sale securities as of April 3, 2015, by remaining contractual maturity, were as follows (in millions):
The following table summarizes, by major type, the fair value and cost basis of the Company’s investments as of June 27, 2014 (in millions):
The fair value of the Company’s investments classified as available-for-sale securities as of June 27, 2014, by remaining contractual maturity, were as follows (in millions):
The Company determined no available-for-sale securities were other-than-temporarily impaired in the three and nine months ended April 3, 2015. For more information on the Company's available-for-sale securities, see Note 7 below. In addition, the Company enters into certain strategic investments for the promotion of business and strategic objectives. These strategic investments are recorded at cost as a component of the other non-current assets line item within the condensed consolidated balance sheets and were not material to the condensed consolidated financial statements as of April 3, 2015 and June 27, 2014. Other Comprehensive Income (Loss) Other comprehensive income (loss) refers to revenue, expenses, gains and losses that are recorded as an element of shareholders’ equity but are excluded from net income. The Company’s other comprehensive income (loss) is comprised of unrealized gains and losses on foreign exchange contracts. There were no unrealized gains or losses on the Company's available-for-sale securities or actuarial gains and losses related to pensions in both the nine months ended April 3, 2015 and March 28, 2014. In addition, the income tax impact on components of other comprehensive income (loss) is immaterial for all periods presented. The following table illustrates the changes in the balances of each component of accumulated other comprehensive income (loss) for the nine months ended April 3, 2015 (in millions):
The following table illustrates the changes in the balances of each component of accumulated other comprehensive income (loss) for the nine months ended March 28, 2014 (in millions):
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Income per Common Share
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Apr. 03, 2015
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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):
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Debt
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Apr. 03, 2015
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Debt Disclosure [Abstract] | |
Debt | 4. Debt On January 9, 2014, Western Digital Ireland, Ltd. (“WDI”) used existing cash to repay the outstanding term loan balance of $1.8 billion under its previous credit agreement, dated March 8, 2012. Also on January 9, 2014, the Company, Western Digital Technologies, Inc. (“WDT”) and WDI entered into a new credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto, which was subsequently amended on February 25, 2015 (as amended, the "Credit Agreement") to add Western Digital International, Ltd. (”WD International”) as an additional borrower. The Credit Agreement provides for $4.0 billion of unsecured loan facilities consisting of a $2.5 billion term loan facility to WDT and a $1.5 billion revolving credit facility to WDT, WDI and WD International (each, a “Borrower” and collectively, the “Borrowers”). The revolving credit facility includes a $100 million sublimit for letters of credit and a $50 million sublimit for swing line loans. Subject to certain conditions, a Borrower may elect to expand the credit facilities by, or obtain incremental term loans of, up to $1.0 billion if existing or new lenders provide additional term or revolving commitments. The loans under the Credit Agreement have a five-year term. The obligations of the Borrowers under the Credit Agreement are guaranteed by the Company and its material domestic subsidiaries, and the obligations of WDI and WD International under the Credit Agreement are also guaranteed by WDT. As of April 3, 2015, no amounts were outstanding under the revolving credit facility and the term loan facility had an outstanding balance of $2.3 billion and a variable interest rate of 1.68%. The Company is required to make quarterly principal payments on the term loan facility totaling $31 million for the remainder of fiscal 2015, $156 million in fiscal 2016, $219 million in fiscal 2017, $250 million in fiscal 2018 and the remaining balance of $1.7 billion in fiscal 2019. The Credit Agreement 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 Agreement contains customary covenants, including covenants that limit or restrict the Company’s and its subsidiaries’ ability to incur liens, incur indebtedness, make certain restricted payments, merge or consolidate and enter into certain speculative hedging arrangements, and customary events of default. As of April 3, 2015, the Company was in compliance with all covenants. |
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Legal Proceedings
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9 Months Ended |
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Apr. 03, 2015
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Commitments and Contingencies Disclosure [Abstract] | |
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 note, “WD” refers to Western Digital Corporation or one or more of its subsidiaries excluding HGST prior to the closing of the Company's acquisition of HGST on March 8, 2012 (the "HGST Closing Date"). HGST refers to Hitachi Global Storage Technologies Holdings Pte. Ltd. or one or more of its subsidiaries as of the HGST 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 18, 2008, plaintiff Convolve, Inc. (“Convolve”) filed a complaint in the Eastern District of Texas against WD, HGST, and two other companies 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, for which the Company previously recorded an accrual. WD and HGST filed post-trial motions challenging the verdict. On January 17, 2014 and February 11, 2015, the Court denied WD’s and HGST’s post-trial motions. On March 13, 2015, WD and HGST filed Notices of Appeal with the United States District Court for the Federal Circuit (“Federal Circuit”). On April 16, 2015, Convolve filed a motion for reconsideration of the final judgment. WD and HGST intend to continue to defend themselves 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 sought injunctive relief and unspecified monetary damages, fees and costs. The patents asserted by Guzik allegedly related to devices used to test hard disk drive heads and media. On November 30, 2013, WD entered into a settlement agreement for an amount that is not material to the Company’s financial position, results of operations or cash flows, for which the Company recorded an accrual. Guzik disputed the enforceability of the agreement and on December 27, 2013, WD filed a motion to enforce the agreement. The Court granted WD’s motion to enforce the settlement agreement on March 21, 2014. On April 14, 2014, Guzik filed a Notice of Appeal with the Federal Circuit. On January 9, 2015, the Federal Circuit affirmed the Court’s decision granting WD’s motion to enforce the settlement agreement. This matter is now resolved. On March 24, 2014, plaintiff Steven F. Reiber (“Reiber”) filed a complaint in the Eastern District of California against the Company, alleging infringement of U.S. Patent Nos. 7,124,927 and 7,389,905. On September 16, 2014, Reiber filed an amended complaint in the Eastern District of California against the Company alleging infringement of three additional patents-U.S. Patent Nos. 6,935,548, 6,651,864, and 6,354,479. Reiber alleges that WD products (including hard disk drive heads, head gimbal assemblies, head stack assemblies and SSDs) infringe these patents based on the allegation that the manufacturing of these products involves the use of certain bonding tools (e.g., wire-bonding tips, capillary tips, and flip-chip handling tools) that have electrically “dissipative” properties, and which are used when bonding components, such as leads, wires and flip chips. The complaint seeks an injunction, unspecified monetary damages, interests, fees and costs. The Company intends to defend itself vigorously in this matter. On October 20, 2014, plaintiff SOTA Semiconductor LLC (“SOTA”) filed a complaint in the Central District of California against the Company, Marvell Semiconductor, Inc., Belkin International, Inc., Dell Inc., Hewlett-Packard Company, Hisense USA Corp., Konica Minolta Business Solutions U.S.A., Inc., Lenovo (United States) Inc., Netgear, Inc., Samsung Electronics America, Inc., and Seagate Technology LLC, alleging infringement of U.S. Patent No. 5,991,545. SOTA alleged that the Company’s devices that incorporate Marvell Thumb Processors, including WD’s My Cloud EX2 network attached storage devices, which include model numbers WDBVKW0080JCH, WDBVKW0060JCH, WDBVKW0040JCH and WDBVKW0000NCH, infringe the ’545 patent. The complaint sought unspecified monetary damages, interest, fees, costs and expenses. On December 12, 2014, the Company filed an answer and counterclaims to SOTA’s complaint. On February 23, 2015, the Court dismissed the action against the Company with prejudice. This matter is now resolved. 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 misappropriation of trade secrets and sought injunctive relief and unspecified monetary damages, interest, fees and costs. On June 19, 2007, WD’s former employee filed a demand for arbitration with the American Arbitration Association. On January 23, 2012, the arbitrator issued a total final award, including pre-award interest 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, and, on October 12, 2012, the District Court of Hennepin County, Minnesota vacated, in full, the $630.4 million final arbitration award, ordering that a rehearing be held concerning the alleged trade secret claims before a new arbitrator. Seagate appealed the District Court decision to the Minnesota Court of Appeals. On July 22, 2013, the Minnesota Court of Appeals reversed the District Court’s decision and remanded for entry of an order and judgment confirming the arbitration award. On August 20, 2013, the Company filed a petition for review with the Minnesota Supreme Court and, on October 15, 2013, the Minnesota Supreme Court granted the Company’s petition. On October 8, 2014, the Minnesota Supreme Court affirmed the decision of the Minnesota Court of Appeals. Because the Minnesota Supreme Court’s decision is not subject to appeal, on October 14, 2014, the Company paid Seagate $773.4 million to satisfy the full amount of the final arbitration award plus interest accrued through October 13, 2014. This amount was paid during the quarter ended January 2, 2015 by one of the Company’s foreign subsidiaries using cash held outside of the United States. Seagate disputes the method the Company used for calculating post-award interest and contends that the Company owes Seagate approximately $29 million in additional interest. The Company denies Seagate’s contention and believes it calculated interest properly in accordance with the arbitration award. On November 12, 2014, the Company filed a motion with the District Court seeking an order declaring that WD has paid to Seagate all amounts due under the arbitration award, including all pre-award and post-award interest, and all costs and disbursements assessed by the Minnesota Court of Appeals and the Minnesota Supreme Court. On December 23, 2014, Seagate filed a cross-motion seeking entry of judgment in the amount of $29 million, plus daily interest from October 15, 2014 until the date any judgment is paid. Both parties’ motions were fully briefed and, on January 9, 2015, the District Court heard oral argument on both motions. On April 7, 2015, the District Court granted the Company’s motion and declared that all amounts due and owing from the Company to Seagate have been paid, and a corresponding judgment was entered on April 8, 2015. On May 6, 2015, Seagate appealed the decision and judgment to the Minnesota Court of Appeals. The Company will continue to defend itself vigorously in this matter. Other Matters On December 22, 2011, the German Central Organization for Private Copying Rights (Zentralstelle für private Überspielungsrechte), (“ZPÜ”), an organization consisting of several copyright collecting societies, instituted arbitration proceedings against Western Digital's German subsidiary ("WD Germany") before the Copyright Arbitration Board (“CAB”) claiming copyright levies for multimedia hard drives, external hard drives and network hard drives sold or introduced into commerce in Germany by WD Germany from January 2008 through December 2010. The CAB, which was required to issue a settlement proposal within one year of the initiation of the action, failed to do so and requested the parties consent to continue the deadline. WD Germany declined to provide consent and, on February 1, 2013, WD Germany filed a declaratory relief action against ZPÜ in the Higher Regional Court of Munich (the “Higher Court”), seeking an order from the court to determine the copyright levy issue. On May 21, 2013, ZPÜ filed a counter-claim against WD Germany with the Higher Court, seeking copyright levies for multimedia hard drives, external hard drives and network hard drives (collectively, "Covered Products") sold or introduced into commerce from January 2008 through December 2010 based on tariffs published by ZPÜ on November 3, 2011. On May 22, 2014, oral argument on the pleadings occurred. On January 15, 2015, the Higher Court ruled in favor of ZPÜ. In its ruling, the Higher Court declared that WD Germany must pay certain levies on certain WD products which it sold in Germany between January 1, 2008 and December 31, 2010. The judgment specifies levy amounts on certain WD products sold from 2008 to 2010 and directs WD Germany to provide applicable sales data to the ZPÜ. The exact amount of the judgment has not been determined. ZPÜ and WD Germany filed appeals with the German Federal Court of Justice on February 18 and February 20, 2015, respectively. WD intends to defend itself vigorously in this matter. On December 11, 2014, ZPÜ submitted a pleading to the CAB seeking copyright levies for multimedia hard drives, external hard drives and network hard drives sold or introduced into commerce in Germany by WD Germany from January 1, 2012 to December 31, 2013. WD intends to defend itself vigorously in this matter. The Company has recorded an accrual for German copyright levies in an amount that is not material to the Company’s financial position, results of operations or cash flows. It is reasonably possible that the Company may incur losses totaling up to $90 million, including the amounts accrued. 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. |
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Income Taxes
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Apr. 03, 2015
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Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes The Company’s income tax provision for the three and nine months ended April 3, 2015 was $28 million and $85 million, respectively, as compared to $31 million and $105 million in the respective prior-year periods. The Company's tax provision for the nine months ended April 3, 2015 reflects a tax benefit of $16 million resulting from the retroactive extension of the U.S. Federal R&D tax credit that was signed into law on December 19, 2014. 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 2015 through 2025 and the current year generation of income tax credits. In the three months ended April 3, 2015, the Company recorded a net increase of $16 million in its liability for unrecognized tax benefits. In the nine months ended April 3, 2015, the Company recorded a net increase of $32 million in its liability for unrecognized tax benefits. As of April 3, 2015, the Company's liability for unrecognized tax benefits was approximately $332 million. Interest and penalties recognized on such amounts were not material to the condensed consolidated financial statements during the three and nine months ended April 3, 2015. The Internal Revenue Service (“IRS”) previously completed its field examination of the Company's federal income tax returns for fiscal years 2006 and 2007, and the Company and the IRS reached agreement with respect to all matters except on the proposed adjustments to income before income taxes relating to intercompany payable balances. The proposed adjustments relating to intercompany payable balances for fiscal years 2006 and 2007 will be addressed in conjunction with the IRS’s examination of the Company’s fiscal years 2008 and 2009, which commenced in January 2012. In addition, in January 2012, the IRS commenced an examination of the 2007 fiscal period ended September 5, 2007 of Komag, Incorporated, which was acquired by the Company on September 5, 2007. The Company anticipates that the IRS fieldwork will be completed in the first quarter of fiscal year 2016. With respect to the 2008 and 2009 audit, the Company received a notice of proposed adjustment from the IRS relating to intercompany payable balances. The proposed adjustments to income before income taxes relating to intercompany payable balances for fiscal years 2006, 2007, 2008 and 2009 total approximately $200 million. The Company disagrees with the proposed adjustments, believes that its tax position is properly supported and will vigorously contest the position taken by the IRS. The IRS examined calendar years 2010 and 2011 of HGST, which was acquired by the Company on March 8, 2012, and completed the examination with no material adjustments. The Company believes that adequate provision has been made for any adjustments that may result from tax examinations. 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 April 3, 2015, it was not possible to estimate the amount of change, if any, in the unrecognized tax benefits that is reasonably possible 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. |
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Fair Value Measurements
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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 April 3, 2015, and indicates the fair value hierarchy of the valuation techniques utilized to determine such value (in millions):
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 27, 2014, and indicates the fair value hierarchy of the valuation techniques utilized to determine such value (in millions):
Money Market Funds. The Company’s money market funds are funds that invest in U.S. Treasury and U.S. Government Agency 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. Certificates of Deposit. The Company’s certificates of deposit are investments which are held in custody by a third party and recorded within short-term investments in the condensed consolidated balance sheets. Certificates of deposit are valued using fixed interest rates. Commercial Paper. The Company’s commercial paper securities are investment grade debt issued by corporations which are held in custody by a third party with original maturities of twelve months or less and are recorded within cash and cash equivalents or short-term investments in the condensed consolidated balance sheets depending on their original maturities. Commercial paper 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 and are held in custody by a third party and recorded within cash and cash equivalents, short-term investments or other non-current assets in the condensed consolidated balance sheets depending on their original maturities. 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. U.S. Treasury Securities. The Company’s U.S. Treasury securities are direct obligations of the U.S. federal government, are held in custody by a third party and are recorded within other non-current assets 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. Bank Acceptances. The Company’s bank acceptances are held in custody by a third party and recorded within cash and cash equivalents in the condensed consolidated balance sheets. Bank acceptances are valued using a market approach which is based on observable inputs including market interest rates from multiple pricing sources. 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. For contracts that have a right of offset by its individual counterparties under master netting arrangements, the Company presents its foreign exchange contracts on a net basis by counterparty in the condensed consolidated balance sheets. For more information on the Company's foreign exchange contracts, see Note 8. 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. 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. |
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Foreign Exchange Contracts
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 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 April 3, 2015, 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, 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 and presented within cash flow from operations. 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 nine months ended April 3, 2015 and March 28, 2014. 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 cost of revenue or operating expenses, depending on the nature of the underlying hedged item. All fair value hedges were determined to be effective as of April 3, 2015 and June 27, 2014. The changes in fair value on these contracts were immaterial to the condensed consolidated financial statements during the three and nine months ended April 3, 2015 and March 28, 2014. As of April 3, 2015, the net amount of unrealized losses 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 April 3, 2015, the Company did not have any foreign exchange contracts with credit-risk-related contingent features. The Company opened $1.5 billion and $3.5 billion, and closed $1.3 billion and $3.5 billion, in foreign exchange contracts in the three and nine months ended April 3, 2015, respectively. In addition, the Company opened $1.0 billion and $3.7 billion, and closed $1.2 billion and $3.8 billion, in foreign exchange contracts in the three and nine months ended March 28, 2014, respectively. The fair value and balance sheet location of the Company's foreign exchange contracts as of April 3, 2015 and June 27, 2014 were as follows (in millions):
The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting arrangements with the Company's various counterparties, and the net amounts recognized in the condensed consolidated balance sheet as of April 3, 2015 (in millions):
The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting arrangements with the Company's various counterparties, and the net amounts recognized in the condensed consolidated balance sheet as of June 27, 2014 (in millions):
The impact on the condensed consolidated financial statements was as follows (in millions):
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 nine months ended April 3, 2015 and March 28, 2014. |
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Stock-Based Compensation
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | 9. Stock-Based Compensation Stock-Based Compensation Expense During the three and nine months ended April 3, 2015, the Company recognized in expense $17 million and $53 million, respectively, for stock-based compensation related to the vesting of options issued under the Company’s stock plans and the ESPP, as compared to $24 million and $69 million in the respective prior-year periods. The tax benefit realized as a result of the aforementioned stock-based compensation expense was $8 million and $20 million in the three and nine months ended April 3, 2015, respectively, as compared to $6 million and $17 million in the three and nine months ended March 28, 2014, respectively. As of April 3, 2015, total compensation cost related to unvested stock options and ESPP rights issued to employees but not yet recognized was $111 million and will be amortized on a straight-line basis over a weighted average service period of approximately 2.1 years. During the three and nine months ended April 3, 2015, the Company recognized in expense $21 million and $64 million, respectively, for stock-based compensation related to the vesting of awards of RSUs and performance stock unit awards, issued under the Company's stock plans, as compared to $17 million and $56 million in the respective prior-year periods. The tax benefit realized as a result of the aforementioned stock-based compensation expense was $6 million and $17 million in the three and nine months ended April 3, 2015, respectively, as compared to $5 million and $14 million in the three and nine months ended March 28, 2014, respectively. As of April 3, 2015, the aggregate unamortized fair value of all unvested RSUs was $141 million, which will be recognized on a straight-line basis over a weighted average vesting period of approximately 1.5 years. During the three and nine months ended April 3, 2015, the Company recognized a $9 million benefit and $3 million expense, respectively, related to adjustments to market value as well as the vesting of stock appreciation rights (“SARs”), as compared to $11 million expense and $35 million expense in the respective prior-year periods. The tax expense and tax benefit realized as a result of the aforementioned SARs expense was $2 million and $1 million in the three and nine months ended April 3, 2015, respectively, as compared to a $2 million benefit and $7 million benefit in the three and nine months ended March 28, 2014, respectively. The SARs will be settled in cash upon exercise. As a result, the Company had a total liability of $50 million related to SARs included in accrued expenses in the condensed consolidated balance sheet as of April 3, 2015. As of April 3, 2015, all SARs issued to employees were fully vested and are now solely subject to market price fluctuations. Stock Option Activity The following table summarizes stock option activity under the Company’s stock option plans (in millions, except per share amounts and remaining contractual lives):
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 April 3, 2015, the Company had options outstanding to purchase an aggregate of 6.4 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 $358 million at that date. During the three and nine months ended April 3, 2015, the aggregate intrinsic value of options exercised under the Company’s stock option plans was $73 million and $236 million, respectively, determined as of the date of exercise, as compared to $60 million and $164 million in the respective prior-year periods. RSU Activity The following table summarizes RSU activity under the Company's stock plans (in millions, except weighted average grant date fair value):
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 $8 million and $124 million in the three and nine months ended April 3, 2015, respectively. These amounts are being recognized to expense over the corresponding vesting periods. The Company has assumed a forfeiture rate of 4.6% and 4.4% for the three and nine months ended April 3, 2015, respectively, based on a historical analysis indicating forfeitures for these types of awards. 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. As of April 3, 2015, 0.6 million SARs were outstanding with a weighted average exercise price of $8.02. There were no SARs granted and all other SARs activity was immaterial to the condensed consolidated financial statements for the three and nine months ended April 3, 2015. 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:
The weighted average expected term of the Company’s stock options granted during the three and nine months ended April 3, 2015 was 5.3 years and 5.8 years, respectively, compared to 5.6 years and 5.0 years in 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 are granted on either June 1 or December 1 of each year. ESPP activity was immaterial to the condensed consolidated financial statements for the three and nine months ended April 3, 2015 and March 28, 2014. Stock Repurchase Program The Company's Board of Directors previously authorized $3.0 billion for the repurchase of the Company's common stock. On February 3, 2015, the Company's Board of Directors authorized an additional $2.0 billion for the repurchase of its common stock and approved the extension of its stock repurchase program to February 3, 2020. The Company repurchased 2.2 million and 7.6 million shares, respectively, for a total cost of $240 million and $772 million during the three and nine months ended April 3, 2015, respectively. The remaining amount available to be purchased under the Company’s stock repurchase program as of April 3, 2015 was $2.4 billion. The Company may continue to repurchase its stock as it deems appropriate. Repurchases under the stock repurchase program may be made in the open market or in privately negotiated transactions and may be made under a Rule 10b5-1 plan. The Company expects stock repurchases to be funded principally by operating cash flows and borrowings under the Company's Credit Agreement. Dividends to Shareholders 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 receive dividends when and as declared by the Company’s Board of Directors. In the three months ended April 3, 2015, the Company declared a cash dividend of $0.50 per share as of April 3, 2015, totaling $116 million, which was paid on April 16, 2015. In the nine months ended April 3, 2015, the Company declared cash dividends of $1.30 per share for a total of $280 million. On May 5, 2015, the Company declared a cash dividend of $0.50 per share as of July 3, 2015, which will be paid on July 15, 2015. The Company may modify, suspend or cancel its cash dividend policy in any manner and at any time. |
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Pensions and Other Post-retirement Benefit Plans
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 for the three and nine months ended April 3, 2015 and March 28, 2014. 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 (in millions):
The following table presents the unfunded amounts as recognized on the Company’s condensed consolidated balance sheets (in millions):
The net periodic benefit cost of the Company’s pension plans was not material to the condensed consolidated financial statements for the three and nine months ended April 3, 2015 and March 28, 2014. The Company’s expected employer contribution for its Japanese defined benefit pension plans is $11 million in fiscal 2015. |
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Acquisitions
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Acquisitions | 11. Acquisitions The condensed consolidated financial statements include the results of operations of acquired companies commencing after their respective acquisition dates. Disclosed below are those acquisitions which have a significant impact to these condensed consolidated financial statements. Acquisition of Amplidata On March 9, 2015, the Company acquired Amplidata NV (“Amplidata”), a developer of object storage software for public and private cloud data centers. As a result of the acquisition, Amplidata was fully integrated into the Company's HGST subsidiary and became a wholly owned indirect subsidiary of the Company. The purchase price of the acquisition was approximately $264 million, consisting of $245 million funded with available cash at the time of the acquisition and $19 million related to the fair value of a previously-held cost method investment. The acquisition is expected to further HGST's strategy to expand into higher value data storage platforms and systems that address the growth in storage requirements in cloud data centers. The Company identified and recorded the assets acquired and liabilities assumed at their estimated fair values at the date of acquisition, and allocated the remaining value of $173 million to goodwill. The values assigned to the acquired assets and liabilities are based on preliminary estimates of fair value available as of the date of this Quarterly Report on Form 10-Q, and may be adjusted during the measurement period of up to 12 months from the date of the acquisition as further information becomes available with any changes in the fair values potentially resulting in adjustments to goodwill. The individual tangible and intangible assets acquired as well as the liabilities assumed in the acquisition were immaterial to the Company's condensed consolidated financial statements. The preliminary purchase price allocation for Amplidata was as follows (in millions):
The $173 million of goodwill recognized is primarily attributable to the benefits the Company expects to derive from an ability to create hard disk drive storage solutions leveraging the core software acquired and is not expected to be deductible for tax purposes. The impact to revenue and net income attributable to Amplidata was immaterial to the Company’s condensed consolidated financial statements for the three and nine months ended April 3, 2015. Prior to the acquisition date, the Company held a non-controlling interest in Amplidata accounted for under the cost method of accounting. Upon acquiring the outstanding ownership stake in Amplidata, the Company remeasured its original equity interest to its fair value using the income approach, which utilizes estimates of discounted future cash flows, and recognized a $9 million gain during the three months ended April 3, 2015, which was recorded as a component of the employee termination benefits, asset impairments and other charges line item within the condensed consolidated statements of income. Acquisition of Virident On October 17, 2013, the Company acquired Virident Systems, Inc. ("Virident"), a provider of server-side flash storage solutions for virtualization, database, cloud computing and webscale applications. As a result of the acquisition, Virident has been fully integrated into the Company's HGST subsidiary and became a wholly-owned indirect subsidiary of the Company. The acquisition furthered HGST's strategy to address the rapidly changing needs of enterprise customers by delivering intelligent storage solutions that maximize application performance by leveraging the tightly coupled server, storage and network resources of today’s converged datacenter infrastructures. The values assigned to the acquired assets and liabilities were finalized during the three months ended June 27, 2014, and the final purchase price allocation for Virident was as follows (in millions):
Acquisition of sTec On September 12, 2013, the Company completed its acquisition of sTec, Inc. ("sTec"), a provider of enterprise solid-state drives. As a result of the acquisition, sTec has been fully integrated into the Company's HGST subsidiary and became a wholly-owned indirect subsidiary of the Company. The acquisition augmented HGST's existing solid-state storage capabilities. The values assigned to the acquired assets and liabilities were finalized during the three months ended October 3, 2014, and the final purchase price allocation for sTec was as follows (in millions):
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Employee Termination, Asset Impairment and Other Charges
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Termination Benefits and Other Charges | 12. Employee Termination, Asset Impairment and Other Charges The Company periodically incurs charges to realign its operations with anticipated market demand. The employee termination, asset impairment and other charges line item within the Company's condensed consolidated statements of income consisted of the following:
The following table provides a rollforward of those amounts recorded as liabilities within the Company's condensed consolidated balance sheets:
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Thailand Flooding (Notes)
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9 Months Ended |
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Apr. 03, 2015
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Thailand Flooding [Abstract] | |
Unusual or Infrequent Items Disclosure [Text Block] | 13. Thailand Flooding In October 2011, severe flooding in Thailand inundated all of the Company’s Thailand manufacturing facilities and submerged certain equipment located there. The Company maintains insurance coverage that provides property and business interruption coverage in the event of losses arising from flooding. As a result, the Company received a total of $50 million of insurance recoveries, of which $13 million was received previously and $37 million was received in the three months ended January 2, 2015 and recorded as a component of the selling, general and administrative line item within the Company's condensed consolidated statements of income. All flood-related claims submitted by the Company to its insurers were closed as of January 2, 2015. |
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Recent Accounting Pronouncements
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9 Months Ended |
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Apr. 03, 2015
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Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | 14. Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"). The new standard requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015, which for the Company is the first quarter of fiscal 2017. The Company does not expect the adoption of ASU 2015-03 to have a material effect on its condensed consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"), which amends the guidance in former Accounting Standards Codification Topic 605, "Revenue Recognition," to provide a single, comprehensive revenue recognition model for all contracts with customers. The new standard requires an entity to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled in exchange for those goods or services. The new standard also requires entities to enhance disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The new standard allows for either a full retrospective or a modified retrospective transition method and is effective for fiscal years beginning after December 15, 2016, which for the Company is the first quarter of fiscal 2018. Additionally, the FASB recently proposed a one-year deferral period for the effective date of the new standard, which the Company will evaluate if or when the deferral proposal is approved. The Company has not yet selected a transition method and is currently evaluating the impact ASU 2014-09 will have on its consolidated financial statements and related disclosures. In July 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" ("ASU 2013-11"). The new standard requires the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than as liabilities in the consolidated balance sheets when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new standard is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2013, which for the Company was the first quarter of fiscal 2015. The Company adopted this pronouncement in the first quarter of fiscal 2015, and it did not have a material effect on its condensed consolidated financial statements. |
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Basis of Presentation (Policies)
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9 Months Ended |
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Apr. 03, 2015
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Accounting Policies [Abstract] | |
Fiscal Period, Policy [Policy Text Block] | The Company's fiscal year ends on the Friday nearest to June 30 and typically consists of 52 weeks. Approximately every six years, the Company reports a 53-week fiscal year to align its fiscal year with the foregoing policy. The Company's fiscal third quarters ended April 3, 2015 and March 28, 2014 both consisted of 13 weeks. Fiscal year 2015 will be comprised of 53 weeks and will end on July 3, 2015. |
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. |
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Supplemental Financial Statement Data (Tables)
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Apr. 03, 2015
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories; Property, Plant and Equipment; and Other Intangible Assets |
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Changes in Warranty Accrual | Changes in the warranty accrual were as follows (in millions):
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Available-for-sale Securities [Table Text Block] | The following table summarizes, by major type, the fair value and cost basis of the Company’s investments as of April 3, 2015 (in millions):
The following table summarizes, by major type, the fair value and cost basis of the Company’s investments as of June 27, 2014 (in millions):
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Investments Classified by Contractual Maturity Date [Table Text Block] | The fair value of the Company’s investments classified as available-for-sale securities as of June 27, 2014, by remaining contractual maturity, were as follows (in millions):
The fair value of the Company’s investments classified as available-for-sale securities as of April 3, 2015, by remaining contractual maturity, were as follows (in millions):
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Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table illustrates the changes in the balances of each component of accumulated other comprehensive income (loss) for the nine months ended April 3, 2015 (in millions):
The following table illustrates the changes in the balances of each component of accumulated other comprehensive income (loss) for the nine months ended March 28, 2014 (in millions):
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Supplemental Financial Information Table [Text Block] No definition available.
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Income per Common Share (Tables)
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Apr. 03, 2015
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
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Fair Value Measurements (Tables)
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 03, 2015
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | 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 April 3, 2015, and indicates the fair value hierarchy of the valuation techniques utilized to determine such value (in millions):
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 27, 2014, and indicates the fair value hierarchy of the valuation techniques utilized to determine such value (in millions):
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Foreign Exchange Contracts (Tables)
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 03, 2015
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value and Balance Sheet Location of Contracts | The fair value and balance sheet location of the Company's foreign exchange contracts as of April 3, 2015 and June 27, 2014 were as follows (in millions):
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Offsetting Assets and Liabilities [Table Text Block] | The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting arrangements with the Company's various counterparties, and the net amounts recognized in the condensed consolidated balance sheet as of April 3, 2015 (in millions):
The following table presents the gross amounts of the Company's derivative instruments, amounts offset due to master netting arrangements with the Company's various counterparties, and the net amounts recognized in the condensed consolidated balance sheet as of June 27, 2014 (in millions):
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Gains (Losses) of Derivatives in Cash Flow Hedging Relationships | The impact on the condensed consolidated financial statements was as follows (in millions):
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Tabular disclosure of derivative and other financial assets and liabilities that are subject to offsetting, including master netting arrangements. No definition available.
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Stock-Based Compensation (Tables)
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Apr. 03, 2015
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Activity | The following table summarizes stock option activity under the Company’s stock option plans (in millions, except per share amounts and remaining contractual lives):
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Restricted Stock Unit Activity | The following table summarizes RSU activity under the Company's stock plans (in millions, except weighted average grant date fair value):
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Fair Value of Stock Options Granted | The fair value of stock options granted was estimated using the following weighted average assumptions:
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Tabular disclosure of the weighted average assumptions used in calculating the fair value of stock options granted. No definition available.
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Pensions and Other Post-retirement Benefit Plans (Tables)
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Apr. 03, 2015
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Unfunded Status of Benefit Obligations and Plan Assets | The following table presents the unfunded status of the benefit obligations and Japanese plan assets (in millions):
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Unfunded Amounts Recognized on Consolidated Balance Sheet | The following table presents the unfunded amounts as recognized on the Company’s condensed consolidated balance sheets (in millions):
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Acquisitions (Tables)
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 03, 2015
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase Price Allocations | The values assigned to the acquired assets and liabilities were finalized during the three months ended October 3, 2014, and the final purchase price allocation for sTec was as follows (in millions):
The values assigned to the acquired assets and liabilities were finalized during the three months ended June 27, 2014, and the final purchase price allocation for Virident was as follows (in millions):
The preliminary purchase price allocation for Amplidata was as follows (in millions):
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- Definition
Purchase Price Allocation Of Business Combination [Table Text Block] No definition available.
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Employee Termination, Asset Impairment and Other Charges Employee Termination, Asset Impairment and Other Charges (Tables)
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 03, 2015
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The Company periodically incurs charges to realign its operations with anticipated market demand. The employee termination, asset impairment and other charges line item within the Company's condensed consolidated statements of income consisted of the following:
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Rollforward of Employment Termination Benefit Liability | The following table provides a rollforward of those amounts recorded as liabilities within the Company's condensed consolidated balance sheets:
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Supplemental Financial Statement Data - Inventories; Property, Plant and Equipment; and Other Intangible Assets (Detail) (USD $)
In Millions, unless otherwise specified |
Apr. 03, 2015
|
Jun. 27, 2014
|
---|---|---|
Inventories: | ||
Raw materials and component parts | $ 173 | $ 168 |
Work-in-process | 498 | 493 |
Finished goods | 651 | 565 |
Total inventories | 1,322 | 1,226 |
Property, plant and equipment: | ||
Property, plant and equipment | 8,520 | 8,123 |
Accumulated depreciation | (5,469) | (4,830) |
Property, plant and equipment, net | 3,051 | 3,293 |
Other intangible assets: | ||
Other intangible assets, gross | 1,067 | 984 |
Accumulated amortization | (667) | (530) |
Other intangible assets, net | $ 400 | $ 454 |
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Gross value of definite and indefinite-lived intangible assets, excluding goodwill. No definition available.
|
Supplemental Financial Statement Data - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | |
---|---|---|
Apr. 03, 2015
|
Jun. 27, 2014
|
|
Supplemental Financial Statement Data [Abstract] | ||
Product warranty, Minimum | 1 year | |
Product warranty, Maximum | 5 years | |
Long-term portion of the warranty accrual classified in other liabilities | $ 65 | $ 63 |
X | ||||||||||
- Definition
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- Definition
Product warranty period maximum. No definition available.
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- Definition
Product warranty period minimum. No definition available.
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Supplemental Financial Statement Data - Changes in Accrual Warranty (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 03, 2015
|
Mar. 28, 2014
|
Apr. 03, 2015
|
Mar. 28, 2014
|
|
Product Warranties Disclosures [Abstract] | ||||
Warranty accrual, beginning of period | $ 222 | $ 190 | $ 182 | $ 187 |
Warranty liabilities assumed as a result of the Acquisition | 1 | 0 | 1 | 4 |
Charges to operations | 46 | 41 | 145 | 125 |
Utilization | (47) | (56) | (140) | (162) |
Changes in estimate related to pre-existing warranties | (1) | (2) | 33 | 19 |
Warranty accrual, end of period | $ 221 | $ 173 | $ 221 | $ 173 |
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Available-for-sale Securities, Fair Value No definition available.
|
Supplemental Financial Statement Data Supplemental FS Data - Investments by Maturity Date (Details) (USD $)
In Millions, unless otherwise specified |
Apr. 03, 2015
|
Jun. 27, 2014
|
---|---|---|
Investments, Equity Securities By Maturity Date [Abstract] | ||
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis | $ 228 | $ 284 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 294 | 215 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 522 | 499 |
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value | 228 | 284 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 294 | 215 |
Available-for-sale Securities, Debt Maturities, Fair Value | $ 522 | $ 499 |
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Income per Common Share - Computation of Basic and Diluted Income Per Common Share (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2015
|
Mar. 28, 2014
|
Apr. 03, 2015
|
Mar. 28, 2014
|
|||||||
Earnings Per Share [Abstract] | ||||||||||
Net income | $ 384 | $ 375 | $ 1,245 | $ 1,300 | ||||||
Weighted average shares outstanding: | ||||||||||
Basic | 231 | 235 | 233 | 236 | ||||||
Employee stock options and other | 5 | 7 | 5 | 6 | ||||||
Diluted | 236 | 242 | 238 | 242 | ||||||
Income per common share: | ||||||||||
Basic | $ 1.66 | $ 1.60 | $ 5.34 | $ 5.51 | ||||||
Diluted | $ 1.63 | $ 1.55 | $ 5.23 | $ 5.37 | ||||||
Anti-dilutive potential common shares excluded* | 1 | [1] | 2 | [1] | 1 | [1] | 1 | [1] | ||
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- Definition
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|
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- Definition
Amount by which the credit facility can be expanded. No definition available.
|
X | ||||||||||
- Definition
Line of Credit Facility Amount Available to Borrow No definition available.
|
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- Definition
Period of term loan facility. No definition available.
|
X | ||||||||||
- Definition
Sublimit for Letters of Credit Under Revolving Credit Facility. No definition available.
|
X | ||||||||||
- Definition
Sublimit for Swing Line Loans Under Revolving Credit Facility. No definition available.
|
X | ||||||||||
- Definition
Total term loan amount borrowed under credit facility. No definition available.
|
Legal Proceedings - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
Apr. 03, 2015
|
Dec. 23, 2014
|
Oct. 14, 2014
|
Oct. 12, 2012
|
Jan. 23, 2012
|
---|---|---|---|---|---|
Commitments and Contingencies Disclosure [Abstract] | |||||
Amount of total award issued by the arbitrator | $ 630.4 | ||||
Amount of total award issued by arbitrator vacated | 630.4 | ||||
Final Arbitration Award | 773.4 | ||||
Disputed Post Award Interest | 29.0 | ||||
Loss Contingency, Range of Possible Loss, Maximum | $ 90 |
X | ||||||||||
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No authoritative reference available. No definition available.
|
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- Definition
Total of arbitration award plus pre-award interest. No definition available.
|
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- Definition
Amount of total award issued by arbitrator vacated. No definition available.
|
X | ||||||||||
- Definition
Disputed Post Award Interest on the Arbitration Award No definition available.
|
X | ||||||||||
- Definition
Final Arbitration Award Paid No definition available.
|
Income Taxes - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 03, 2015
|
Mar. 28, 2014
|
Apr. 03, 2015
|
Mar. 28, 2014
|
|
Income Tax Disclosure [Line Items] | ||||
Income tax provision | $ 28 | $ 31 | $ 85 | $ 105 |
Tax Benefit Resulting From Retroactive Extension Of Research And Development Credit | 16 | |||
Expiration date of tax holiday in Malaysia, Philippines, Singapore and Thailand | from 2015 through 2025 | |||
Increase (Decrease) in liability for unrecognized tax benefits | 16 | 32 | ||
Unrecognized tax benefits | 332 | 332 | ||
Proposed IRS adjustments to Pre-tax income | $ 200 | $ 200 |
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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|
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- Definition
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|
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- Details
|
X | ||||||||||
- Definition
Proposed IRS adjustments to pre-tax income. No definition available.
|
X | ||||||||||
- Definition
Tax Benefit Resulting From Retroactive Extension Of Research And Development Credit No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
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- Definition
No authoritative reference available. No definition available.
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- Definition
Long-term Investments, Fair Value Disclosure No definition available.
|
X | ||||||||||
- Definition
Short-term Investments, Fair Value Disclosure No definition available.
|
Foreign Exchange Contracts - Additional Information (Detail) (USD $)
|
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 03, 2015
|
Mar. 28, 2014
|
Apr. 03, 2015
|
Mar. 28, 2014
|
|
Foreign Exchange Contracts [Abstract] | ||||
Contract maturity dates | Less than 12 months | |||
Unrealized gains expected to be reclassified into earnings | $ 10,000,000 | $ 10,000,000 | ||
Foreign exchange contracts opened during the period by company | 1,500,000,000.0 | 1,000,000,000.0 | 3,500,000,000.0 | 3,700,000,000.0 |
Foreign exchange contracts closed during the period by company | $ 1,300,000,000.0 | $ 1,200,000,000.0 | $ 3,500,000,000.0 | $ 3,800,000,000.0 |
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
Foreign Currency Contracts Maximum Maturity Term No definition available.
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- Details
|
X | ||||||||||
- Definition
Total dollar amount of foreign exchange contracts closed during the period. No definition available.
|
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- Definition
Total dollar amount of foreign exchange contracts opened during the period. No definition available.
|
Foreign Exchange Contracts - Fair Value and Balance Sheet Location of Contracts (Detail) (USD $)
In Millions, unless otherwise specified |
Apr. 03, 2015
|
Jun. 27, 2014
|
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | $ 2 | $ 7 |
Derivatives Designated as Hedging Instruments Fair Value, Liability Derivatives | 17 | 2 |
Other current assets [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset | 2 | 7 |
Accrued expenses [Member] | Designated as Hedging Instrument [Member] | Foreign exchange contracts [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivatives Designated as Hedging Instruments Fair Value, Liability Derivatives | $ (17) | $ (2) |
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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- Definition
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Foreign Exchange Contracts Net Amounts of Foreign Exchange Contract Assets and Liabilities Presented In the Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified |
Apr. 03, 2015
|
Jun. 27, 2014
|
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Asset, Fair Value, Gross Asset | $ 6 | $ 9 |
Derivative Asset, Fair Value, Amount Offset | (4) | (2) |
Derivative Assets | 2 | 7 |
Derivative Liability, Fair Value, Gross Liability | (21) | (4) |
Derivative Liability, Fair Value, Amount Offset | 4 | 2 |
Derivative Liabilities | (17) | (2) |
Derivative Assets | (15) | 5 |
Derivative, Fair Value, Amount Offset | 0 | 0 |
Derivative Assets (Liabilities), at Fair Value, Net | $ (15) | $ 5 |
X | ||||||||||
- Definition
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- Details
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- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
The amount as of the balance sheet date of the fair value of derivative assets that in accordance with the entity's accounting policy was offset under a master netting arrangement. No definition available.
|
X | ||||||||||
- Definition
The amount as of the balance sheet date of the fair value of derivative assets that in accordance with the entity's accounting policy was offset under a master netting arrangement. Or, the amount as of the balance sheet date of the fair value of derivative liabilities that in accordance with the entity's accounting policy were offset under a master netting arrangement. No definition available.
|
X | ||||||||||
- Definition
Fair value of derivative asset, presented on a gross basis even when the derivative instrument is subject to master netting arrangements and qualifies for net presentation in the statement of financial position. Or, fair value of derivative liability, presented on a gross basis even when the derivative instrument is subject to master netting arrangements and qualifies for net presentation in the statement of financial position. No definition available.
|
X | ||||||||||
- Definition
The amount as of the balance sheet date of the fair value of derivative liabilities that in accordance with the entity's accounting policy were offset under a master netting arrangement. No definition available.
|
Foreign Exchange Contracts - Gains (Losses) of Derivatives in Cash Flow Hedging Relationships (Detail) (Foreign exchange contracts [Member], Cash Flow Hedging [Member], USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 03, 2015
|
Mar. 28, 2014
|
Apr. 03, 2015
|
Mar. 28, 2014
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in Accumulated OCI on Derivatives | $ 19 | $ 13 | $ (39) | $ 2 |
Cost of revenue [Member]
|
||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of (Gain) Loss Reclassified From Accumulated OCI into Income | $ (10) | $ (32) | $ (24) | $ (29) |
X | ||||||||||
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- Definition
No authoritative reference available. No definition available.
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No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
Cash Dividend Per Common Share Declared No definition available.
|
X | ||||||||||
- Definition
Carrying value of the cash-settled stock appreciation rights at the balance sheet date . No definition available.
|
X | ||||||||||
- Definition
Compensation cost recognized in income during the period for cash-settled stock appreciation rights . No definition available.
|
X | ||||||||||
- Definition
Employee Service Share Based Compensation Tax Benefit From Restricted Stock Amortization Expense No definition available.
|
X | ||||||||||
- Definition
Employee Service Share Based Compensation Tax Benefit From Stock Appreciation Rights Compensation Expense No definition available.
|
X | ||||||||||
- Definition
Forfeiture rate of restricted stock unit valuation assumption. No definition available.
|
X | ||||||||||
- Definition
Grant-date fair value of shares underlying restricted stock awards. No definition available.
|
X | ||||||||||
- Definition
Aggregate amount of options outstanding with an exercise price below the quoted price of the Company's stock on the date of the latest balance sheet presented. No definition available.
|
X | ||||||||||
- Definition
The total dollar difference between fair values of underlying shares reserved for issuance and exercising prices pertaining to options outstanding with an exercise price below the quoted price of the Company's stock on the date of the latest balance sheet presented. No definition available.
|
X | ||||||||||
- Definition
Remaining Amount For Repurchase Under Share Repurchase Program No definition available.
|
X | ||||||||||
- Definition
The weighted average exercise price at which grantees can exercise stock appreciation rights for cash settlement. No definition available.
|
X | ||||||||||
- Definition
Stock appreciation rights outstanding at balance sheet date. No definition available.
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
Stock Repurchase Program Additional Amount Authorized No definition available.
|
X | ||||||||||
- Definition
As of the balance sheet date, the aggregate unrecognized cost of stock option awards made to employees under share-based compensation plans and employee stock purchase plan rights that have yet to vest. No definition available.
|
X | ||||||||||
- Definition
The weighted average period over which unrecognized costs is expected to be recognized for employee service share based stock option awards and employee stock purchase plan rights, using a decimal to express in number of years. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
Net number of share options (or share units) assumed during the period in a business combination. No definition available.
|
X | ||||||||||
- Definition
Share Based Compensation Arrangement By Share Based Payment Award Options Canceled or Expired In Period No definition available.
|
X | ||||||||||
- Definition
Share based payments award options vested and expected to vest outstanding weighted average remaining contractual term. No definition available.
|
X | ||||||||||
- Definition
The weighted average exercise price of options assumed in a business combination as share based compensation. No definition available.
|
X | ||||||||||
- Definition
The total dollar difference between fair values of the underlying shares reserved for issuance and exercise prices of vested portions of options outstanding and exercisable as of the end of the period. No definition available.
|
X | ||||||||||
- Definition
The weighted average remaining contractual life of options exercisable at the end of the period expressed in years. No definition available.
|
X | ||||||||||
- Definition
The weighted average price at which option holders acquired shares when converting their stock options into shares. No definition available.
|
X | ||||||||||
- Definition
The weighted average exercise price of options granted as share based compensation. No definition available.
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Details
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X | ||||||||||
- Definition
Share based compensation arrangement by share based payment award equity instruments other than options expected to vest outstanding number. No definition available.
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X | ||||||||||
- Definition
Share based compensation arrangement by share based payment award equity instruments other than options expected to vest outstanding weighted average grant date fair value. No definition available.
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X | ||||||||||
- Definition
Share based compensation arrangement by share based payment awards equity instruments other than options forfeited in period weighted average grant date fair value. No definition available.
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Stock-Based Compensation - Fair Value of Stock Options Granted (Detail) (USD $)
|
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 03, 2015
|
Mar. 28, 2014
|
Apr. 03, 2015
|
Mar. 28, 2014
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Suboptimal exercise factor | 2.65 | 2.29 | 2.52 | 2.06 |
Risk-free interest rates, minimum | 0.21% | 0.13% | 0.11% | 0.10% |
Risk-free interest rates, maximum | 1.60% | 2.31% | 2.16% | 2.44% |
Expected stock price volatility, minimum | 0.25% | 0.27% | 0.23% | 0.27% |
Expected stock price volatility, maximum | 0.45% | 0.48% | 0.47% | 0.50% |
Weighted average expected volatility | 0.34% | 0.39% | 0.36% | 0.43% |
Post-vesting termination rate | 1.04% | 3.29% | 1.25% | 3.09% |
Dividend yield | 2.15% | 1.34% | 1.69% | 1.57% |
Fair value | $ 28.87 | $ 28.78 | $ 32.22 | $ 24.06 |
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- Details
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
Factor to estimate the amount of vested options that will be exercised within 90 days as a result of employee termination. No definition available.
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X | ||||||||||
- Definition
Factor to estimate the amount of option exercises prior to the end of their respective term. No definition available.
|
Pensions and Other Post-retirement Benefit Plans - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
9 Months Ended | 12 Months Ended |
---|---|---|
Apr. 03, 2015
|
Jul. 03, 2015
Scenario, Forecast [Member]
Japan pension benefits [Member]
|
|
Defined Benefit Plan Disclosure [Line Items] | ||
Expected long-term rate of return on plan assets | 3.50% | |
Expected contribution for pension plan | $ 11 |
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Details
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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Pensions and Other Post-retirement Benefit Plans - Unfunded Status of Benefit Obligations and Plan Assets (Detail) (Japan pension benefits [Member], USD $)
In Millions, unless otherwise specified |
Apr. 03, 2015
|
Jun. 27, 2014
|
---|---|---|
Japan pension benefits [Member]
|
||
Defined Benefit Plan Disclosure [Line Items] | ||
Benefit obligation | $ 219 | $ 255 |
Fair value of plan assets | (171) | (191) |
Unfunded status | $ 48 | $ 64 |
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Details
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
Defined benefit plan unfunded status. No definition available.
|
Pensions and Other Post-retirement Benefit Plans - Unfunded Amounts Recognized on Consolidated Balance Sheet (Detail) (Japan pension benefits [Member], USD $)
In Millions, unless otherwise specified |
Apr. 03, 2015
|
Jun. 27, 2014
|
---|---|---|
Japan pension benefits [Member]
|
||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ 1 | $ 1 |
Non-current liabilities | 47 | 63 |
Net amount recognized | $ 48 | $ 64 |
X | ||||||||||
- Details
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
Acquisitions - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
0 Months Ended | 3 Months Ended | |||||
---|---|---|---|---|---|---|---|
Apr. 03, 2015
|
Jun. 27, 2014
|
Mar. 09, 2015
Amplidata [Member]
|
Apr. 03, 2015
Amplidata [Member]
|
Mar. 09, 2015
Amplidata [Member]
|
Oct. 17, 2013
Virident [Member]
|
Sep. 12, 2013
sTec [Member]
|
|
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | $ 264 | ||||||
Business Acquisition, Cost of Acquired Entity, Cash Paid | 245 | ||||||
Fair value of previously held cost-method investment transferred | 19 | ||||||
Value allocated to goodwill | 2,745 | 2,559 | 173 | 506 | 89 | ||
Gain recognized during period upon fair value re-measurement of interest held | $ 9 |
X | ||||||||||
- Details
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
Acquisitions Amplidata purchase price allocation (Details) (USD $)
In Millions, unless otherwise specified |
Apr. 03, 2015
|
Jun. 27, 2014
|
Mar. 09, 2015
Amplidata [Member]
|
---|---|---|---|
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 4 | ||
Intangible assets | 87 | ||
Goodwill | 2,745 | 2,559 | 173 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 264 |
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
Acquisitions Virident purchase price allocation (Details) (USD $)
In Millions, unless otherwise specified |
Apr. 03, 2015
|
Jun. 27, 2014
|
Oct. 17, 2013
Virident [Member]
|
---|---|---|---|
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 58 | ||
Intangible assets | 49 | ||
Goodwill | 2,745 | 2,559 | 506 |
Total | $ 613 |
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
Acquisitions sTec Purchase Price Allocation (Details) (USD $)
In Millions, unless otherwise specified |
Apr. 03, 2015
|
Jun. 27, 2014
|
Sep. 12, 2013
sTec [Member]
|
---|---|---|---|
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 189 | ||
Intangible assets | 58 | ||
Goodwill | 2,745 | 2,559 | 89 |
Total | $ 336 |
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
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X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
Employee Termination, Asset Impairment and Other Charges - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Apr. 03, 2015
|
Mar. 28, 2014
|
Apr. 03, 2015
|
Mar. 28, 2014
|
|
Employee Termination, Asset Impairment and Other Charges [Line Items] | ||||
Employee termination, asset impairment and other charges | $ 10 | $ 25 | $ 72 | $ 59 |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve | 7 | |||
Accruals | 60 | |||
Payments | (41) | |||
Restructuring Reserve | 26 | 26 | ||
Employee termination benefits
|
||||
Employee Termination, Asset Impairment and Other Charges [Line Items] | ||||
Employee termination, asset impairment and other charges | 17 | 6 | 60 | 27 |
Contract termination and other
|
||||
Employee Termination, Asset Impairment and Other Charges [Line Items] | ||||
Employee termination, asset impairment and other charges | (9) | 2 | (9) | 6 |
Impairment of assets
|
||||
Employee Termination, Asset Impairment and Other Charges [Line Items] | ||||
Employee termination, asset impairment and other charges | $ 2 | $ 17 | $ 21 | $ 26 |
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Definition
No authoritative reference available. No definition available.
|
X | ||||||||||
- Details
|
Thailand Flooding (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 36 Months Ended | 39 Months Ended |
---|---|---|---|
Jan. 02, 2015
|
Oct. 03, 2014
|
Jan. 02, 2015
|
|
Thailand Flooding [Abstract] | |||
Insurance Recoveries And Other Cost Reimbursement | $ 37 | $ 13 | $ 50 |
X | ||||||||||
- Definition
Insurance recoveries and other cost reimbursements received related to the flood. No definition available.
|
X | ||||||||||
- Details
|