0000106040-22-000055 | 10-K | XBRL Viewer

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Cover Page - USD ($) $ in Billions	12 Months Ended
Cover Page - USD ($) $ in Billions	Jul. 01, 2022	Aug. 11, 2022	Dec. 31, 2021
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jul. 01, 2022
Current Fiscal Year End Date	--07-01
Document Transition Report	false
Entity File Number	1-8703
Entity Registrant Name	WESTERN DIGITAL CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0956711
Entity Address, Address Line One	5601 Great Oaks Parkway
Entity Address, City or Town	San Jose,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95119
City Area Code	408
Local Phone Number	717-6000
Title of 12(b) Security	Common Stock, $0.01 Par Value Per Share
Trading Symbol	WDC
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 17.0
Entity Common Stock, Shares Outstanding (in shares)		314,492,541
Documents Incorporated by Reference	Part III incorporates by reference certain information from the registrant’s definitive proxy statement (the “Proxy Statement”) for the 2022 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days after the end of the 2022 fiscal year. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part hereof.
Entity Central Index Key	0000106040
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Amendment Flag	false

Audit Information	12 Months Ended
Audit Information	Jul. 01, 2022
Audit Information [Abstract]
Auditor Name	KPMG LLP
Auditor Location	Santa Clara, California
Auditor Firm ID	185

Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions	Jul. 01, 2022	Jul. 02, 2021
Current assets:
Cash and cash equivalents	$ 2,327	$ 3,370
Accounts receivable, net	2,804	2,257
Inventories	3,638	3,616
Other current assets	684	514
Total current assets	9,453	9,757
Non-current assets:
Property, plant and equipment, net	3,670	3,188
Notes receivable and investments in Flash Ventures	1,396	1,586
Goodwill	10,041	10,066
Other intangible assets, net	213	442
Other non-current assets	1,486	1,093
Total assets	26,259	26,132
Current liabilities:
Accounts payable	1,902	1,934
Accounts payable to related parties	320	398
Accrued expenses	1,636	1,390
Income taxes payable	869	263
Accrued compensation	510	634
Current portion of long-term debt	0	251
Total current liabilities	5,237	4,870
Non-current liabilities:
Long-term debt	7,022	8,474
Other liabilities	1,779	2,067
Total liabilities	14,038	15,411
Commitments and contingencies (Notes 10, 11, 14 and 17)
Shareholders’ equity:
Preferred stock, $0.01 par value; authorized — 5 shares; issued and outstanding — none	0	0
Common stock, $0.01 par value; authorized — 450 shares; issued — 315 shares in 2022 and 312 shares in 2021; outstanding — 315 shares in 2022 and 308 shares in 2021	3	3
Additional paid-in capital	3,733	3,608
Accumulated other comprehensive loss	(554)	(197)
Retained earnings	9,039	7,539
#REF!	0	(232)
Total shareholders’ equity	12,221	10,721
Total liabilities and shareholders’ equity	$ 26,259	$ 26,132
Treasury stock (in shares)	0	4

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 01, 2022	Jul. 02, 2021
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	450,000,000	450,000,000
Common stock, issued (in shares)	315,000,000	312,000,000
Common stock, outstanding (in shares)	315,000,000	308,000,000
Treasury stock (in shares)	0	4,000,000

Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Income Statement [Abstract]
Revenue, net	$ 18,793	$ 16,922	$ 16,736
Cost of revenue	12,919	12,401	12,955
Gross profit	5,874	4,521	3,781
Operating expenses:
Research and development	2,323	2,243	2,261
Selling, general and administrative	1,117	1,105	1,153
Employee termination, asset impairment, and other charges	43	(47)	32
Total operating expenses	3,483	3,301	3,446
Operating income	2,391	1,220	335
Interest and other income (expense):
Interest income	6	7	28
Interest expense	(304)	(326)	(413)
Other income, net	30	26	4
Total interest and other expense, net	(268)	(293)	(381)
Income (loss) before taxes	2,123	927	(46)
Income tax expense	623	106	204
Net income (loss)	$ 1,500	$ 821	$ (250)
Earnings Per Share [Abstract]
Basic (in dollars per share)	$ 4.81	$ 2.69	$ (0.84)
Diluted (in dollars per share)	$ 4.75	$ 2.66	$ (0.84)
Weighted average shares outstanding:
Basic (in shares)	312	305	298
Diluted (in shares)	316	309	298
Cash dividends declared per share (in USD per share)	$ 0	$ 0	$ 1.50

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 1,500	$ 821	$ (250)
Other comprehensive loss, before tax:
Actuarial pension gain (loss)	26	27	(1)
Foreign currency translation adjustment	(239)	(36)	(7)
Net unrealized loss on derivative contracts	(180)	(33)	(93)
Total other comprehensive loss, before tax	(393)	(42)	(101)
Income tax benefit related to items of other comprehensive loss, before tax	36	2	12
Other comprehensive loss, net of tax	(357)	(40)	(89)
Total comprehensive income (loss)	$ 1,143	$ 781	$ (339)

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Cash flows from operating activities
Net income (loss)	$ 1,500	$ 821	$ (250)
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization	929	1,212	1,566
Stock-based compensation	326	318	308
Deferred income taxes	114	(242)	(82)
Gain on disposal of assets	(16)	(70)	(7)
Gain on business divestiture	(9)	0	0
Amortization of debt issuance costs and discounts	44	40	40
Other non-cash operating activities, net	67	(6)	6
Changes in:
Accounts receivable, net	(546)	121	(1,175)
Inventories	(22)	(546)	200
Accounts payable	(129)	11	192
Accounts payable to related parties	(78)	(9)	75
Accrued expenses	246	257	103
Income taxes payable	(74)	95	81
Accrued compensation	(123)	162	124
Other assets and liabilities, net	(349)	(266)	(357)
Net cash provided by operating activities	1,880	1,898	824
Cash flows from investing activities
Purchases of property, plant and equipment	(1,122)	(1,146)	(647)
Proceeds from the sale of property, plant and equipment	15	143	0
Acquisitions, net of cash acquired	0	0	(22)
Proceeds from dispositions of business	32	0	0
Notes receivable issuances to Flash Ventures	(809)	(541)	(353)
Notes receivable proceeds from Flash Ventures	718	772	1,284
Strategic investments and other, net	(26)	7	16
Net cash provided by (used in) investing activities	(1,192)	(765)	278
Cash flows from financing activities
Issuance of stock under employee stock plans	122	134	141
Taxes paid on vested stock awards under employee stock plans	(90)	(56)	(72)
Dividends paid to shareholders	0	0	(595)
Repayment of government grants	0	(9)	0
Repayment of debt	(3,621)	(886)	(982)
Proceeds from debt	1,894	0	0
Debt issuance costs	(23)	0	0
Net cash used in financing activities	(1,718)	(817)	(1,508)
Effect of exchange rate changes on cash	(13)	6	(1)
Net increase (decrease) in cash and cash equivalents	(1,043)	322	(407)
Cash and cash equivalents, beginning of year	3,370	3,048	3,455
Cash and cash equivalents, end of year	2,327	3,370	3,048
Supplemental disclosure of cash flow information:
Cash paid for income taxes	423	348	341
Cash paid for interest	245	283	372
Noncash exchange of Term Loan A-1 for Term Loan A-2	$ 2,104	$ 0	$ 0

Consolidated Statements of Shareholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment
Common stock, beginning balance (in shares) at Jun. 28, 2019			312
Beginning balance at Jun. 28, 2019	$ 9,967	$ (5)	$ 3	$ (1,268)	$ 3,851	$ (68)	$ 7,449	$ (5)
Treasury stock, beginning balance (in shares) at Jun. 28, 2019				(17)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(250)						(250)
Employee stock plans (in shares)				7
Employee stock plans	69			$ 531	(462)
Stock-based compensation	308				308
Dividends to shareholders	(449)				20		(469)
Actuarial pension gain (loss)	(5)					(5)
Foreign currency translation adjustment	(6)					(6)
Net unrealized loss on derivative contracts	(78)					(78)
Common stock, ending balance (in shares) at Jul. 03, 2020			312
Ending balance at Jul. 03, 2020	9,551	$ (7)	$ 3	$ (737)	3,717	(157)	6,725	$ (7)
Treasury stock, ending balance (in shares) at Jul. 03, 2020				(10)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	821						821
Employee stock plans (in shares)				6
Employee stock plans	78			$ 505	(427)
Stock-based compensation	318				318
Actuarial pension gain (loss)	23					23
Foreign currency translation adjustment	(36)					(36)
Net unrealized loss on derivative contracts	$ (27)					(27)
Common stock, ending balance (in shares) at Jul. 02, 2021	308		312
Ending balance at Jul. 02, 2021	$ 10,721		$ 3	$ (232)	3,608	(197)	7,539
Treasury stock, ending balance (in shares) at Jul. 02, 2021				(4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	1,500						1,500
Employee stock plans (in shares)			3	4
Employee stock plans	31			$ 232	(201)
Stock-based compensation	326				326
Actuarial pension gain (loss)	24					24
Foreign currency translation adjustment	(239)					(239)
Net unrealized loss on derivative contracts	$ (142)					(142)
Common stock, ending balance (in shares) at Jul. 01, 2022	315		315
Ending balance at Jul. 01, 2022	$ 12,221		$ 3	$ 0	$ 3,733	$ (554)	$ 9,039
Treasury stock, ending balance (in shares) at Jul. 01, 2022				0

Organization and Basis of Presentation	12 Months Ended
Organization and Basis of Presentation	Jul. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation Western Digital Corporation (“Western Digital” or “the Company”) is a leading developer, manufacturer, and provider of data storage devices and solutions that address the evolving needs of the information technology (“IT”) industry and the infrastructure that enables the proliferation of data in virtually every other industry. The Company creates environments for data to thrive. The Company is driving the innovation needed to help customers capture, preserve, access and transform an ever-increasing diversity of data. Everywhere data lives, from advanced data centers to mobile sensors to personal devices, the Company’s industry-leading solutions deliver the possibilities of data. The Company’s broad portfolio of technology and products address the following key end markets: Cloud, Client and Consumer. The Company also generates immaterial license and royalty revenue from its extensive intellectual property (“IP”) portfolio, which is included in each of these three end market categories. Basis of Presentation The Company has prepared its Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and has adopted accounting policies and practices which are generally accepted in the industry in which it operates. The Company’s significant accounting policies are summarized below. Reclassifications Certain reclassifications have been made to prior period amounts in the Consolidated Financial Statements to conform to the current period presentation. These reclassifications did not have a material impact on previously reported amounts. Fiscal Year The Company’s fiscal year ends on the Friday nearest to June 30 and typically consists of 52 weeks. Approximately every five to six years, we report a 53-week fiscal year to align the fiscal year with the foregoing policy. Fiscal years 2022 and 2021, which ended on July 1, 2022 and July 2, 2021, respectively, are comprised of 52 weeks, with all quarters presented consisting of 13 weeks. Fiscal year 2020, which ended on July 3, 2020, was comprised of 53 weeks, with the first quarter consisting of 14 weeks and the remaining quarters consisting of 13 weeks each. Unless otherwise indicated, references herein to specific years and quarters are to fiscal years and fiscal quarters, and references to financial information are on a consolidated basis. Segment Reporting The Company manufactures, markets, and sells data storage devices and solutions in the U.S. and in foreign countries through its sales personnel, dealers, distributors, retailers, and subsidiaries. Historically, the Company had been managed and reported under a single operating segment. In 2021, the Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), announced a decision to reorganize the Company’s business by forming two separate product business units: flash-based products (“Flash”) and hard disk drives (“HDD”). To align the new operating model and business structure, the Company made management organizational changes and implemented new reporting modules and processes to provide discrete information to manage the business. Effective July 3, 2021, the Company’s management finalized its assessment of the Company’s operating segments and concluded that the Company now has two operating segments: flash-based products and hard disk drives. The CODM evaluates performance of the Company and makes decisions regarding allocation of resources based on each operating segment’s net revenue and gross margin. Because of the integrated nature of the Company’s production and distribution activities, separate segment asset measures are either not available or not used as a basis for the CODM to evaluate the performance of or to allocate resources to the segments. Basis of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The functional currency of most of the Company’s foreign subsidiaries is the U.S. dollar. The accounts of these foreign subsidiaries have been remeasured using the U.S. dollar as the functional currency. Gains or losses resulting from remeasurement of these accounts from local currencies into U.S. dollars were immaterial to the Consolidated Financial Statements. Financial statements of the Company’s foreign subsidiaries for which the functional currency is the local currency are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted average exchange rate for each period for statement of operations items. Translation adjustments are recorded in accumulated other comprehensive income, a component of shareholders’ equity. Use of Estimates 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 with consideration given to the potential impacts of the ongoing COVID-19 pandemic. However, actual results could differ materially from these estimates. Cash Equivalents The Company’s cash equivalents represent highly liquid investments in money market funds, which are invested in U.S. Treasury securities and U.S. Government agency securities as well as bank certificates of deposit with original maturities at purchase of three months or less. These deposits are typically in excess of U.S. insured limits. Cash equivalents are carried at cost plus accrued interest, which approximates fair value. Equity Investments The Company enters into certain strategic investments for the promotion of business and strategic objectives. The equity method of accounting is used if the Company’s ownership interest is greater than or equal to 20% but less than a majority or where the Company has the ability to exercise significant influence over operating and financial policies. The Company’s equity in the earnings or losses in equity-method investments is recognized in Other income, net, in the Consolidated Statements of Operations. If the Company’s ownership interest is less than 20% and the Company does not have the ability to exercise significant influence over operating and financial policies of the investee, the Company accounts for these investments at fair value, or if these equity securities do not have a readily determinable fair value, these securities are measured and recorded using the measurement alternative under Accounting Standards Update (“ASU”) No. 2016-01, “Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which is cost minus impairment, if any, plus or minus changes resulting from observable price changes. Previously, these investments were accounted for under the cost method of accounting. These investments are recorded within Other non-current assets in the Consolidated Balance Sheets and are periodically analyzed to determine whether or not there are indicators of impairment. Variable Interest Entities The Company evaluates its investments and other significant relationships to determine whether any investee is a variable interest entity (“VIE”). If the Company concludes that an investee is a VIE, the Company evaluates its power to direct the activities of the investee, its obligation to absorb the expected losses of the investee and its right to receive the expected residual returns of the investee to determine whether the Company is the primary beneficiary of the investee. If the Company is the primary beneficiary of a VIE, the Company consolidates such entity and reflects the non-controlling interest of other beneficiaries of that entity. The Company does not consolidate any cost method investment or equity method investment entities. Fair Value of Financial Instruments The carrying amounts of cash equivalents, 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 fair value of investments that are not accounted for under the equity method is based on appropriate market information. Inventories The Company values inventories at the lower of cost (first-in, first out) or net realizable value. The first-in, first-out method is used to value the cost of the majority of the Company’s inventories. Inventory write-downs are recorded for the valuation of inventory at the lower of cost or net realizable value by analyzing market conditions and estimates of future sales prices as compared to inventory costs and inventory balances. The Company evaluates inventory balances for excess quantities and obsolescence on a regular basis by analyzing estimated demand, inventory on hand, sales levels and other information and reduces inventory balances to net realizable value for excess and obsolete inventory based on this analysis. Unanticipated changes in technology or customer demand could result in a decrease in demand for one or more of the Company’s products, which may require a write down of inventory that could materially affect operating results. Property, Plant and Equipment Property and equipment are carried at cost less accumulated depreciation and amortization. The cost of property, plant and equipment is depreciated over the estimated useful lives of the respective assets. The Company’s buildings and improvements are depreciated over periods ranging from fifteen to thirty years. The majority of the Company’s machinery and equipment, software, and furniture and fixtures, are depreciated on a straight-line basis over a period of two to seven years. Leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or the related lease terms. Business Combinations The application of acquisition accounting to a business combination requires that the Company identify the individual assets acquired and liabilities assumed and estimate the fair value of each. The fair value of assets acquired and liabilities assumed in a business acquisition are recognized at the acquisition date using a combination of valuation techniques, with the purchase price exceeding the fair values being recognized as goodwill. Determining fair value of identifiable assets, particularly intangibles, liabilities acquired and contingent obligations assumed requires management to make estimates. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analyses. Accordingly, the measurement period for such purchase price allocations will end when the information, or the facts and circumstances, becomes available, but will not exceed twelve months. The Company will recognize measurement-period adjustments during the period of resolution, including the effect on earnings of any amounts that would have been recorded in previous periods if the accounting had been completed at the acquisition date. Goodwill and intangible assets often represent a significant portion of the assets acquired in a business combination. The Company recognizes the fair value of an acquired intangible apart from goodwill whenever the intangible arises from contractual or other legal rights, or when it can be separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged, either individually or in combination with a related contract, asset or liability. Intangible assets consist primarily of technology, customer relationships, and trade name and trademarks acquired in business combinations and in-process research and development (“IPR&D”). The Company’s assessment of IPR&D also includes consideration of the risk of the projects not achieving technological feasibility. Goodwill and Other Long-Lived Assets Goodwill is not amortized. Instead, it is tested for impairment on an annual basis or more frequently whenever events or changes in circumstances indicate that goodwill may be impaired. The Company performs an annual impairment test as of the beginning of its fourth quarter. The Company uses qualitative factors to determine whether goodwill is more likely than not impaired and whether a quantitative test for impairment is considered necessary. If the Company concludes from the qualitative assessment that goodwill is more likely than not impaired, the Company is required to perform a quantitative approach to determine the amount of impairment. The Company’s assessment resulted in no impairment of goodwill in 2022, 2021, or 2020. The Company is required to use judgment when applying the goodwill impairment test, including the identification of reporting units, assignment of assets, liabilities and goodwill to reporting units, and determination of the fair value of each reporting unit. In addition, the estimates used to determine the fair value of reporting units may change based on results of operations, macroeconomic conditions or other factors. Changes in these estimates could materially affect the Company’s assessment of the fair value and goodwill impairment. If the Company’s stock price decreases significantly, goodwill could become impaired, which could result in a material charge and adversely affect the Company’s results of operations. IPR&D is an intangible asset accounted as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. During the development period, the Company conducts an IPR&D impairment test annually and whenever events or changes in facts and circumstances indicate that it is more likely than not that the IPR&D is impaired. Events which might indicate impairment include, but are not limited to, adverse cost factors, strategic decisions made in response to economic, market, and competitive conditions, and the impact of the economic environment the Company and on its customer base. If impairment is indicated, the impairment is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Other long-lived assets are depreciated or amortized over their estimated useful lives based on the pattern in which the economic benefits are expected to be received. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If impairment is indicated, the impairment is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The estimates of fair value require evaluation of future market conditions and product lifecycles as well as projected revenue, earnings and cash flow. See Note 5, Supplemental Financial Statement Data, for additional disclosures related to the Company’s other intangible assets. Revenue and Accounts Receivable The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to the customer. The transaction price to be recognized as revenue is adjusted for variable consideration, such as sales incentives, and excludes amounts collected on behalf of third parties, including taxes imposed by governmental authorities. The Company’s performance obligations are typically not constrained based on the Company’s history with similar transactions and that uncertainties are resolved in a fairly short period of time. Substantially all of the Company’s revenue is from the sale of tangible products for which the performance obligations are satisfied at a point in time, generally upon delivery. The Company’s services revenue mainly includes professional service arrangements and post contract customer support, warranty as a service and maintenance contracts. The performance obligations for the Company’s services are generally satisfied ratably over the service period based on the nature of the service provided and contract terms. Similarly, revenue from patent licensing arrangements is recognized based on whether the arrangement provides the customer a right to use or right to access the IP. Revenue for a right to use arrangement is recognized at the time the control of the license is transferred to the customer. Revenue for a right to access arrangement is recognized over the contract period using the time lapse method. For the sales-based royalty arrangements, the Company estimates and recognizes revenue in the period in which customers’ licensable sales occur. The Company’s customer payment terms are typically less than two months from the date control over the product or service is transferred to the customer. The Company uses the practical expedient and does not recognize a significant financing component for payment considerations of less than one year. The financing components of contracts with payment terms were not material. The Company provides distributors and retailers (collectively referred to as “resellers”) with limited price protection for inventories held by resellers at the time of published list price reductions. The Company also provides resellers and original equipment manufacturers (“OEMs”) with other sales incentive programs. The Company records estimated variable consideration related to these items as a reduction to revenue at the time of revenue recognition. The Company uses judgment in its assessment of variable consideration in contracts to be included in the transaction price. The Company uses the expected value method to arrive at the amount of variable consideration. The Company constrains variable consideration until the likelihood of a significant revenue reversal is not probable and believes that the expected value method is the appropriate estimate of the amount of variable consideration based on the fact that the Company has a large number of contracts with similar characteristics. For sales to OEMs, the Company’s methodology for estimating variable consideration is based on the amount of consideration expected to be earned based on the OEMs’ volume of purchases from the Company or other agreed upon sales incentive programs. For sales to resellers, the Company’s methodology for estimating variable consideration is based on several factors including historical pricing information, current pricing trends and channel inventory levels. Differences between the estimated and actual amounts of variable consideration are recognized as adjustments to revenue. Marketing development program costs are typically recorded as a reduction of the transaction price and, therefore, of revenue. The Company nets sales rebates against open customer receivable balances if the criteria to offset are met, otherwise they are recorded within other accrued liabilities. For contracts with multiple performance obligations, the Company evaluates whether each deliverable is a distinct promise and should be accounted for as a separate performance obligation. If a promised good or service is not distinct in accordance with the revenue guidance, the Company combines that good or service with the other promised goods or services in the arrangement until a distinct bundle of goods is identified. If applicable, the Company allocates the transaction price to the performance obligations of each distinct product or service, or distinct bundle, based on their relative standalone selling prices. The Company records an allowance for doubtful accounts by analyzing specific customer accounts and assessing the risk of loss based on insolvency or other collection issues. In addition, the Company routinely analyzes the various receivable aging categories to establish reserves based on a combination of past due receivables and expected future losses. If the financial condition of a significant customer deteriorates resulting in its inability to pay its accounts when due, or if the Company’s overall loss trajectory changes significantly, an adjustment in the Company’s allowance for doubtful accounts would be required, which could materially affect operating results. 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, with a small number of products having a warranty ranging up to ten years or more. 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. For warranties ten years or greater, including lifetime warranties, the Company uses the estimated useful life of the product to calculate the warranty exposure. 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 product 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 and could differ significantly from the estimates. Litigation and Other Contingencies 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. 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. See Note 17, Legal Proceedings, for additional disclosures related to the Company’s litigation. Advertising Expense Advertising costs are expensed as incurred and amounted to $88 million, $84 million and $93 million in 2022, 2021 and 2020, respectively. These expenses are included in Selling, general and administrative in the Consolidated Statements of Operations. Research and Development Expense Research and development (“R&D”) expenditures are expensed as incurred. Income Taxes The Company accounts for income taxes under the asset and liability method, which provides that deferred tax assets and liabilities be recognized for temporary differences between the financial reporting basis and the tax basis of assets and liabilities and expected benefits of utilizing net operating loss (“NOL”) and tax credit carryforwards. The Company records a valuation allowance when it is more likely than not that the deferred tax assets will not be realized. Each quarter, the Company evaluates the need for a valuation allowance for its deferred tax assets and adjusts the valuation allowance so that the Company records net deferred tax assets only to the extent that it has concluded it is more likely than not that these deferred tax assets will be realized. The Company accounts for interest and penalties related to income taxes as a component of the provision for income taxes. The Company recognizes liabilities for uncertain tax positions based on a two-step process. To the extent a tax position does not meet a more-likely-than-not level of certainty, no benefit is recognized in the financial statements. If a position meets the more-likely-than-not level of certainty, it is recognized in the financial statements at the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Interest and penalties related to unrecognized tax benefits are recognized in liabilities recorded for uncertain tax positions and are recorded in the provision for income taxes. The actual liability for unrealized tax benefits in any such contingency may be materially different from the Company’s estimates, which could result in the need to record additional liabilities for unrecognized tax benefits or potentially adjust previously-recorded liabilities for unrealized tax benefits, and may materially affect the Company’s operating results. 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 dilutive outstanding employee stock options, restricted stock unit awards (“RSU”), restricted stock unit awards with performance conditions or market conditions (“PSU”), rights to purchase shares of common stock under the Company’s Employee Stock Purchase Plan (“ESPP”) and shares issuable in connection with convertible debt. Stock-based Compensation The Company accounts for all stock-based compensation at fair value. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. The fair values of RSUs and PSUs with a performance condition are determined based on the closing market price of the Company’s stock on the date of the grant. The fair values of all ESPP purchase rights are estimated using the Black-Scholes-Merton option-pricing model and require the input of highly subjective assumptions. The fair values of PSUs with a market condition are estimated using a Monte Carlo simulation model. PSUs are granted to certain employees and vest only after the achievement of pre-determined performance or market conditions. Once these conditions are met, vesting of PSUs is subject to continued service by the employee. At the end of each reporting period, the Company evaluates the probability that PSUs with a performance condition will be earned and records the related stock-based compensation expense over the service period. Compensation expense for PSUs with market conditions is recognized ratably over the required service period regardless of expected or actual achievement. Other Comprehensive Income (Loss), Net of Tax Other comprehensive income (loss), net of tax 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), net of tax is primarily comprised of unrealized gains or losses on foreign exchange contracts and interest rate swap agreements designated as cash flow hedges, foreign currency translation, and actuarial gains or losses related to pensions. Derivative Contracts The majority of the Company’s transactions are in U.S. dollars; however, some transactions are based in various foreign currencies. The Company purchases 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. Substantially all of 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 speculative or trading purposes. The Company had foreign exchange contracts with commercial banks for British pound sterling, European euro, Japanese yen, Malaysian ringgit, Philippine peso, Thai baht, Korean won and Israeli shekel, which had an aggregate notional amount of $6.07 billion and $4.88 billion at July 1, 2022 and July 2, 2021, respectively. If the derivative is designated as a cash flow hedge and is determined to be highly effective, 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 are reported in Cost of revenue and Operating expenses, and presented within cash flows from operating activities. The Company accounts for its interest rate swaps as designated cash flow hedges to mitigate variations in interest payments under a portion of its Secured Overnight Financing Rate (“SOFR”)-based term loans. The Company pays interest monthly at a fixed rate and receives interest monthly at the SOFR on the notional amount of the contract with realized gains or losses recognized in Interest expense. 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 Consolidated Financial Statements for all years presented. A change in the fair value of undesignated hedges is recognized in earnings in the period incurred and is reported in Other income, net. Pensions and Other Post-Retirement Benefit Plans The Company has defined benefit pension plans and other post-retirement plans covering certain employees in various countries. The benefits are based on the employees’ years of service and compensation. The plans are funded in conformity with the funding requirements of applicable government authorities. The Company amortizes unrecognized actuarial gains and losses and prior service costs on a straight-line basis over the remaining estimated average service life of the participants. The measurement date for the plans is the Company’s year-end. The Company recognizes the funded status of its defined benefit pension and post-retirement plans in the Consolidated Balance Sheets, with actuarial changes in the funded status recognized through accumulated other comprehensive income (loss) in the year in which such changes occur. The Company reports the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. In addition, the other components of net benefit cost are presented in Other income, net in the Consolidated Statements of Operations. Leases Effective June 29, 2019, the first day of the year ended July 3, 2020, the Company adopted ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) which resulted in an after-tax decrease to opening retained earnings of $5 million for the cumulative effect of adoption, primarily due to previously recorded sublease proceed assumptions on lease exit liabilities for which there was no expected future economic benefit at transition. The Company leases certain domestic and international facilities and data center space under long-term, non-cancelable operating leases that expire at various dates through 2034. These leases include no material variable or contingent lease payments. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using the Company’s incremental borrowing rate. Operating lease assets also include prepaid lease payments minus any lease incentives. Extension or termination options present in the Company’s lease agreements are included in determining the right-of-use asset and lease liability when it is reasonably certain the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.

Recent Accounting Pronouncements	12 Months Ended
Recent Accounting Pronouncements	Jul. 01, 2022
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The Company adopted this ASU on July 3, 2021, the first day of the year ended July 1, 2022, with no material impact on its Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock and results in fewer instruments with embedded conversion features being separately recognized from the host contract as compared with current standards. Those instruments that do not have a separately recognized embedded conversion feature will no longer recognize a debt issuance discount related to such a conversion feature and would recognize less interest expense on a periodic basis. Additionally, the ASU amends the calculation of the share dilution impact related to a conversion feature and eliminates the treasury method as an option. The Company adopted the new standard effective July 2, 2022, the first day of the year ending June 30, 2023, using the modified retrospective method. On the date of adoption, the Company recorded a reduction in Additional Paid-In Capital of $128 million, a reduction of unamortized debt discount of $48 million, a reduction of deferred income tax liabilities of $11 million, and an increase to retained earnings of $91 million retained earnings for 2023 for the after-tax impact of previously recognized amortization of the debt discount associated with the Company’s convertible senior notes. In November 2021, the FASB issued ASU No. 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2021-10”). ASU 2021-10 increases the transparency of government assistance received by requiring most business entities to disclose information about government assistance received, including (1) the types of assistance, (2) the entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. This ASU is effective for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2021, which for the Company is the first quarter of 2023. Early adoption is permitted. The Company expects to adopt this standard in the first quarter of 2023 and does not expect any material impact from the adoption of this standard.

- Definition

The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle.

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+ Details

Business Segments, Geographic Information, and Concentrations of Risk

12 Months Ended

Jul. 01, 2022

Segment Reporting [Abstract]

Business Segments, Geographic Information, and Concentrations of Risk

The following table summarizes the operating performance of the Company’s reportable segments:


	2022			2021			2020
	(in millions, except percentages)
Net revenue:
Flash	$	9,753		$	8,706		$	7,769
HDD	9,040			8,216			8,967
Total net revenue	$	18,793		$	16,922		$	16,736
Gross profit:
Flash	$	3,527		$	2,611		$	1,903
HDD	2,661			2,221			2,602
Total gross profit for segments	6,188			4,832			4,505
Unallocated corporate items:
Amortization of acquired intangible assets	(66)			(331)			(610)
Stock-based compensation expense	(48)			(55)			(51)
Contamination related charges	(207)			—			—
Recoveries from a power outage incident	7			75			(68)
Other	—			—			5
Total unallocated corporate items	(314)			(311)			(724)
Consolidated gross profit	$	5,874		$	4,521		$	3,781
Gross margin:
Flash	36.2		%	30.0		%	24.5		%
HDD	29.4		%	27.0		%	29.0		%
Consolidated gross margin	31.3		%	26.7		%	22.6		%

Goodwill

In connection with the Company’s determination of its operating segments, effective July 3, 2021, the Company determined that its operating segments were also its reporting units and re-allocated its goodwill between its reporting units based on the estimated relative fair values of the reporting units. In addition, management performed a goodwill impairment assessment for each segment and concluded there were no impairment indicators as of July 1, 2022.

In May 2022, the Company made a decision to exit its RISC-V development operations and completed the sale of the portion of its business for a price of $25 million. The sale of this business included the transfer of a small number of employees and an immaterial amount of other tangible and intangible assets as well as goodwill. The transaction resulted in a gain of approximately $9 million recorded in Employee termination, asset impairment, and other charges in the Consolidated Statements of Operations for the fiscal year ended July 1, 2022. The revenues and expenses related to this business were not material to the Consolidated Financial Statements and did not qualify to be reported as a discontinued operation. The operating results of this business have been reflected in the Company’s results from continuing operations in the Consolidated Statements of Operations for all periods presented through the date of disposition.

The following table provides a summary of goodwill activity for the period:


	Flash		HDD		Total
	(in millions)






Balance at July 2, 2021	$	5,738	$	4,328	$	10,066
Reduction in goodwill in connection with disposition of business	(14)		—		(14)
Foreign currency translation adjustment	(6)		(5)		(11)

Balance at July 1, 2022	$	5,718	$	4,323	$	10,041

Disaggregated Revenue

The Company’s broad portfolio of technology and products address multiple end markets. In 2022, the Company refined the end markets it reports to be Cloud, Client and Consumer. Cloud represents a large and growing end market comprised primarily of products for public or private cloud environments and enterprise customers, which the Company believes it is uniquely positioned to address as the only provider of both Flash and HDD. Through the Client end market, the Company provides its OEM and channel customers a broad array of high-performance flash and hard drive solutions across personal computer, mobile, gaming, automotive, virtual reality headsets, at-home entertainment, and industrial spaces. The Consumer end market is highlighted by the Company’s broad range of retail and other end-user products, which capitalize on the strength of the Company’s product brand recognition and vast points of presence around the world.

The Company’s disaggregated revenue information is as follows:


	2022		2021		2020
	(in millions)
Revenue by End Market
Cloud	$	8,017	$	5,723	$	7,018
Client	7,076		7,281		6,335
Consumer	3,700		3,918		3,383
Total Revenue	$	18,793	$	16,922	$	16,736

The Company’s operations outside the United States include manufacturing facilities in China, Japan, Malaysia, the Philippines and Thailand, as well as sales offices throughout the Americas, Asia Pacific, Europe and the Middle East. The following tables summarize the Company’s operations by geographic area:


	2022		2021		2020
	(in millions)
Net revenue (1)
United States	$	5,411	$	3,789	$	4,679
China	4,525		4,339		4,075
Hong Kong	3,645		3,624		2,592
Rest of Asia	1,884		1,492		1,699
Europe, Middle East and Africa	2,872		3,061		2,926
Other	456		617		765
Total	$	18,793	$	16,922	$	16,736

(1) Net revenue is attributed to geographic regions based on the ship-to location of the customer. License and royalty revenue is attributed to countries based upon the location of the headquarters of the licensee.


	2022		2021
	(in millions)
Long-lived assets (1)
United States	$	1,130	$	1,068
Malaysia	831		632
China	441		395
Thailand	816		651
Rest of Asia	406		398
Europe, Middle East and Africa	46		44
Total	$	3,670	$	3,188

(1) Long-lived assets include property, plant and equipment and are attributed to the geographic location in which they are located.

Customer Concentration and Credit Risk

The Company sells its products to computer manufacturers and OEMs, cloud service providers, resellers, distributors and retailers throughout the world. For each of 2022, 2021 and 2020, no customer accounted for 10% or more of the Company’s net revenue. For 2022, 2021 and 2020, the Company’s top 10 customers accounted for 45%, 39%, and 42% respectively, of the Company’s net revenue.

The Company performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral. The Company maintains allowances for potential credit losses, and such losses have historically been within management’s expectations. At any given point in time, the total amount outstanding from any one of a number of its customers may be individually significant to the Company’s financial results. As of July 1, 2022, the Company had net accounts receivable of $2.8 billion, and no customer accounted for 10% or more of the Company’s outstanding accounts receivable. As of July 2, 2021, the Company had net accounts receivable of $2.3 billion, and one customer, Kingston Technology Company, accounted for 12% of the Company’s net accounts receivable. Reserves for potential credit losses were not material as of each period end.

The Company also has cash equivalent and investment policies that limit the amount of credit exposure to any one financial institution or investment instrument and requires that investments be made only with financial institutions or in investment instruments evaluated as highly credit-worthy.

Supplier Concentration

All of the Company’s Flash require silicon wafers for the memory and controller components. The Company’s flash memory wafers are currently supplied almost entirely from Flash Ventures (as defined in Note 10) and the Company’s controller wafers are all manufactured by third-party sources. The failure of any of these sources to deliver silicon wafers could have a material adverse effect on the Company’s business, financial condition and results of operations.

In addition, some key components are purchased from single source vendors for which alternative sources are currently not available. Shortages could occur in these essential materials due to an interruption of supply or increased demand in the industry. If the Company was unable to procure certain of such materials, the Company’s sales could decline, which could have a material adverse effect upon its results of operations. The Company also relies on third-party subcontractors to assemble and test a portion of its products. The Company does not have long-term contracts with some of these subcontractors and cannot directly control product delivery schedules or manufacturing processes. This could lead to product shortages or quality assurance problems that could increase the manufacturing costs of the Company’s products and have material adverse effects on the Company’s operating results.

Revenues	12 Months Ended
Revenues	Jul. 01, 2022
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Contract assets represent the Company’s rights to consideration where performance obligations are completed but the customer payments are not due until another performance obligation is satisfied. The Company did not have any contract assets as of either July 1, 2022 or July 2, 2021. Contract liabilities relate to customers’ payments in advance of performance under the contract and primarily relate to remaining performance obligations under professional service and support and maintenance contracts. Contract liabilities as of July 1, 2022 and July 2, 2021 and changes in contract liabilities during 2022 and 2021 were not material. The Company incurs sales commissions and other direct incremental costs to obtain sales contracts. The Company has applied the practical expedient to recognize the direct incremental costs of obtaining contracts as an expense when incurred if the amortization period is expected to be one year or less or the amount is not material, with these costs charged to Selling, general and administrative expenses. The Company had no direct incremental costs to obtain contracts that have an expected benefit of greater than one year. The Company applies the practical expedients and does not disclose transaction price allocated to the remaining performance obligations for (i) arrangements that have an original expected duration of one year or less, which mainly consist of the support and maintenance contracts, and (ii) variable consideration amounts for sale-based or usage-based royalties for IP license arrangements, which typically range longer than one year. Remaining performance obligations are mainly attributed to right-to-access patent license arrangements, professional service arrangements and customer support and service contracts which will be recognized over the remaining contract period. The transaction price allocated to the remaining performance obligations as of July 1, 2022 was $45 million, which is mainly attributable to the functional IP license and professional service arrangements. The Company expects to recognize this amount as revenue as follows: $43 million in 2023, and $2 million in 2024 and thereafter.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Supplemental Financial Statement Data

12 Months Ended

Jul. 01, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Financial Statement Data

Accounts receivable, net

From time to time, in connection with factoring agreements, the Company sells trade accounts receivable without recourse to third party purchasers in exchange for cash. In 2022, 2021 and 2020, the Company sold trade accounts receivable and received cash proceeds of $400 million, $233 million and $411 million, respectively. The discounts on the trade accounts receivable sold during the periods were not material and were recorded within Other income, net in the Consolidated Statements of Operations. As of July 1, 2022 and July 2, 2021, the amount of factored receivables that remained outstanding was $300 million and $0 million, respectively.

Inventories


	July 1, 2022		July 2, 2021
	(in millions)
Inventories:
Raw materials and component parts	$	1,603	$	1,623
Work-in-process	1,162		1,088
Finished goods	873		905
Total inventories	$	3,638	$	3,616

Property, plant and equipment, net


	July 1, 2022		July 2, 2021
	(in millions)
Property, plant and equipment:
Land	$	269	$	278
Buildings and improvements	1,920		1,854
Machinery and equipment	8,642		7,860
Computer equipment and software	494		440
Furniture and fixtures	54		51
Construction-in-process	591		476
Property, plant and equipment, gross	11,970		10,959
Accumulated depreciation	(8,300)		(7,771)
Property, plant and equipment, net	$	3,670	$	3,188

Depreciation expense for property, plant and equipment totaled $708 million, $726 million and $797 million in 2022, 2021 and 2020, respectively.

Intangible assets

The following tables present intangible assets as of July 1, 2022 and July 2, 2021:


	July 1, 2022
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(in millions)
Finite:
Existing technology	3	$	4,231	$	(4,231)	$	—
Trade names and trademarks	7	648		(573)		75
Customer relationships	6	613		(555)		58

Leasehold interests	31	1		(1)		—
Total finite intangible assets		5,493		(5,360)		133
In-process research and development		80		—		80
Total intangible assets		$	5,573	$	(5,360)	$	213


	July 2, 2021
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(in millions)
Finite:
Existing technology	3	$	4,231	$	(4,165)	$	66
Trade names and trademarks	7	647		(486)		161
Customer relationships	6	618		(491)		127

Leasehold interests	31	12		(4)		8
Total finite intangible assets		5,508		(5,146)		362
In-process research and development		80		—		80
Total intangible assets		$	5,588	$	(5,146)	$	442

As part of prior acquisitions, the Company recorded at the time of the acquisition acquired IPR&D for projects in progress that had not yet reached technological feasibility. IPR&D is initially accounted for as an indefinite-lived intangible asset. Once a project reaches technological feasibility, the Company reclassifies the balance to existing technology and begins to amortize the intangible asset over its estimated useful life.

During 2022, 2021 and 2020, the Company did not record any impairment charges related to intangible assets.

Intangible assets are amortized over the estimated useful lives based on the pattern in which the economic benefits are expected to be received. Intangible asset amortization was as follows:


	2022		2021		2020
	(in millions)
Intangible asset amortization	$	221	$	486	$	769

The remaining $133 million estimated future amortization expense for intangible assets currently subject to amortization as of July 1, 2022, will be fully recognized in 2023.

Product warranty liability

Changes in the warranty accrual were as follows:



	2022		2021		2020
	(in millions)
Warranty accrual, beginning of period	$	363	$	408	$	350

Charges to operations	146		137		203
Utilization	(103)		(106)		(151)
Changes in estimate related to pre-existing warranties	(61)		(76)		6
Warranty accrual, end of period	$	345	$	363	$	408

The current portion of the warranty accrual is classified in Accrued expenses and the long-term portion is classified in Other liabilities as noted below:


	2022		2021
	(in millions)
Warranty accrual
Current portion (included in Accrued expenses)	$	162	$	175
Long-term portion (included in Other liabilities)	183		188
Total warranty accrual	$	345	$	363

Other liabilities


	2022		2021
	(in millions)
Other liabilities:
Non-current net tax payable	$	659	$	684
Non-current portion of unrecognized tax benefits	477		750
Other non-current liabilities	643		633
Total other liabilities	$	1,779	$	2,067

Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss) (“AOCI”), net of tax refers to expenses, gains and losses that are recorded as an element of shareholders’ equity but are excluded from net income. The following table illustrates the changes in the balances of each component of AOCI:


	Actuarial Pension Gains (Losses)		Foreign Currency Translation Adjustment		Unrealized Gains (Losses) on Derivative Contracts		Total Accumulated Comprehensive Income (Loss)
	(in millions)
Balance at July 3, 2020	$	(58)	$	(2)	$	(97)	$	(157)
Other comprehensive income (loss) before reclassifications	27		(36)		42		33
Amounts reclassified from accumulated other comprehensive loss	—		—		(75)		(75)
Income tax benefit (expense) related to items of other comprehensive loss	(4)		—		6		2
Net current-period other comprehensive income (loss)	23		(36)		(27)		(40)
Balance at July 2, 2021	(35)		(38)		(124)		(197)
Other comprehensive income (loss) before reclassifications	26		(239)		(352)		(565)
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		172		172
Income tax benefit (expense) related to items of other comprehensive income (loss)	(2)		—		38		36
Net current-period other comprehensive income (loss)	24		(239)		(142)		(357)
Balance at July 1, 2022	$	(11)	$	(277)	$	(266)	$	(554)

During 2022 and 2021, the amounts reclassified out of AOCI included losses of $125 million and $50 million related to foreign exchange contracts and losses of $47 million and $25 million related to interest rate swaps, respectively. The losses related to interest rate swaps were charged to interest expense and losses related to foreign contracts were substantially all charged to cost of revenue in the Consolidated Statements of Operations.

Fair Value Measurements and Investments

12 Months Ended

Jul. 01, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements and Investments

Financial Instruments Carried at Fair Value

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 tables present information about the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of July 1, 2022 and July 2, 2021, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values:


	July 1, 2022
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:

Cash equivalents - Money market funds	$	266	$	—	$	—	$	266


















Foreign exchange contracts	—		61		—		61


Interest rate swap contracts	—		3		—		3
Total assets at fair value	$	266	$	64	$	—	$	330
Liabilities:
Foreign exchange contracts	$	—	$	316	$	—	$	316


Total liabilities at fair value	$	—	$	316	$	—	$	316


	July 2, 2021
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:

Cash equivalents - Money market funds	$	1,283	$	—	$	—	$	1,283


















Foreign exchange contracts	—		14		—		14


Total assets at fair value	$	1,283	$	14	$	—	$	1,297
Liabilities:
Foreign exchange contracts	$	—	$	65	$	—	$	65
Interest rate swap contracts	—		80		—		80

Total liabilities at fair value	$	—	$	145	$	—	$	145

Money Market Funds. The Company’s money market funds are funds that invest in U.S. Treasury and U.S. Government agency securities. Money market funds are valued based on quoted market prices.

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 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. For more information on the Company’s foreign exchange contracts, see Note 7, Derivative Instruments and Hedging Activities. Derivative assets and liabilities are reflected in the Company’s Consolidated Balance Sheet under Other current assets and Accrued expenses, respectively.

Interest Rate Swaps. The Company’s interest rate swaps are long-term contracts to hedge the Company’s variable rate debt risk. Interest rate swaps are valued based on estimated present value of future cash flows model. The market-based observable inputs for the model include interest rate curves and credit valuation adjustments based on published credit default swap curves.

During 2022 and 2021, the Company had no transfers of financial assets and liabilities between levels and there were no changes in valuation techniques and the inputs used in the fair value measurement.

Financial Instruments Not Carried at Fair Value

For financial instruments where the carrying value (which includes principal adjusted for any unamortized issuance costs, and discounts or premiums) differs from fair value (which is based on quoted market prices), the following table represents the related carrying value and fair value for each of the Company’s outstanding financial instruments. Each of the financial instruments presented below was categorized as Level 2 for all periods presented, based on the frequency of trading immediately prior to the end of the fourth quarter of 2022 and the fourth quarter of 2021, respectively.


	July 1, 2022				July 2, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)





1.50% convertible notes due 2024	$	1,048	$	1,040	$	1,017	$	1,173

4.75% senior unsecured notes due 2026	2,291		2,205		2,288		2,556





Variable interest rate Term Loan A-2 maturing 2027	2,693		2,621		—		—
2.85% senior unsecured notes due 2029	495		412		—		—
3.10% senior unsecured notes due 2032	495		389		—		—
Variable interest rate Term Loan B-4	—		—		1,093		1,094
Variable interest rate Term Loan A-1	—		—		4,327		4,346
Total	$	7,022	$	6,667	$	8,725	$	9,169

- Definition

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

+ References + Details

Derivatives Instruments and Hedging Activities	12 Months Ended
Derivatives Instruments and Hedging Activities	Jul. 01, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities As of July 1, 2022, the Company had outstanding foreign exchange forward contracts that were designated as either cash flow hedges or non-designated hedges. Substantially all of the contract maturity dates of these foreign exchange forward contracts do not exceed 12 months. In addition, the Company had outstanding pay-fixed interest rate swaps that were designated as cash flow hedges of variable rate interest payments on a portion of its term loans through February 2023. As of July 1, 2022, the Company did not have any derivative contracts with credit-risk-related contingent features. Changes in fair values of the non-designated foreign exchange contracts are recognized in Other income, net and are largely offset by corresponding changes in the fair values of the foreign currency denominated monetary assets and liabilities. For each of 2022, 2021 and 2020, total net realized and unrealized transaction and foreign exchange contract currency gains and losses were not material to the Company’s Consolidated Financial Statements. Netting Arrangements Under certain provisions and conditions within agreements with counterparties to the Company’s foreign exchange forward contracts, subject to applicable requirements, the Company has the right of offset associated with the Company’s foreign exchange forward contracts and is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. As of July 1, 2022 and July 2, 2021, the effect of rights of offset was not material and the Company did not offset or net the fair value amounts of derivative instruments in its Consolidated Balance Sheets.

Debt

12 Months Ended

Jul. 01, 2022

Debt Disclosure [Abstract]

Debt

Debt consisted of the following as of July 1, 2022 and July 2, 2021:


	July 1, 2022		July 2, 2021
	(in millions)
1.50% convertible notes due 2024	$	1,100	$	1,100
4.75% senior unsecured notes due 2026	2,300		2,300
Variable interest rate Term Loan A-2 maturing 2027	2,700		—
2.85% senior unsecured notes due 2029	500		—
3.10% senior unsecured notes due 2032	500		—
Variable interest rate Term Loan A-1	—		4,332
Variable interest rate Term Loan B-4	—		1,093
Total debt	7,100		8,825
Issuance costs and debt discounts	(78)		(100)
Subtotal	7,022		8,725
Less current portion of long-term debt	—		(251)
Long-term debt	$	7,022	$	8,474

On January 7, 2022, the Company entered into a restatement agreement (the “Restatement Agreement”) to amend and restate the Loan Agreement, originally dated as of April 29, 2016 (including subsequent amendments and the Restatement Agreement, collectively, the “Loan Agreement”), to provide for, among other things, (i) the issuance of a new $3.00 billion Term Loan A-2 maturing in January 2027 (the “Term Loan A-2”) to replace its previously existing Term Loan A-1; and (ii) the availability of a new $2.25 billion revolving credit facility maturing in January 2027 (the “2027 Revolving Facility”) to replace its previously existing $2.25 billion revolving credit facility and (iii) additional covenant flexibility and other modifications. The obligations under the Loan Agreement are the senior unsecured obligations of the Company and do not benefit from any collateral or subsidiary guarantees.

The Term Loan A-2 Loan bears interest, at the Company’s option, at a per annum rate equal to either (x) the Adjusted Term SOFR (as defined in the Loan Agreement) plus an applicable margin varying from 1.125% to 2.000% or (y) a base rate plus an applicable margin varying from 0.125% to 1.000%, in each case depending on the corporate family ratings of the Company from at least two of Standard & Poor’s Ratings Services (“S&P”), Moody’s Investors Service, Inc. (“Moody’s”) and Fitch Ratings, Inc. (“Fitch”), with an initial interest rate of Adjusted Term SOFR plus 1.375%. During 2022, the Company made scheduled and voluntary principal payments aggregating $300 million on its Term Loan A-2. $150 million was applied toward scheduled amortization through the quarter ending September 29, 2023 and the remainder towards the principal due at maturity. As of July 1, 2022, the remaining balance of Term Loan A-2 amortizes in quarterly installments of $38 million per quarter beginning with the quarter ending December 29, 2023; and the remaining balance payable at maturity on January 7, 2027. Issuance costs for Term Loan A-2 are amortized to interest expense over its term and unamortized costs were $7 million as of July 1, 2022.

Loans under the 2027 Revolving Facility bear interest at a per annum rate, at the Company’s option, equal to either (x) the Adjusted Term SOFR Rate (as defined in the Loan Agreement) plus an applicable margin varying from 1.125% to 2.000% or (y) a base rate plus an applicable margin varying from 0.125% to 1.000%, in each case depending on the corporate family ratings of the Company from at least two of S&P, Moody’s and Fitch, with an initial rate of Adjusted Term SOFR plus 1.375%. The Company is also required to pay an unused commitment fee on the 2027 Revolving Facility ranging from 0.120% to 0.350% based on the corporate family ratings of the Company from at least two of S&P, Moody’s and Fitch, with an initial unused commitment fee of 0.200%.

In October 2021, the Company voluntarily prepaid the remaining principal balance of its Term Loan B-4 in accordance with its terms.

In December 2021, the Company issued $500 million aggregate principal amount of 2.850% senior unsecured notes due February 1, 2029 (the “2029 Senior Unsecured Notes”) and issued $500 million aggregate principal amount of 3.100% senior unsecured notes due February 1, 2032 (the “2032 Senior Unsecured Notes”) pursuant to the terms of an indenture, dated as of December 10, 2021 (the “Base Indenture”) between the Company and U.S. Bank National Association, as trustee (the “Trustee”), as supplemented by the first supplemental indenture dated as of December 10, 2021 (the “First Supplemental Indenture”) between the Company and the Trustee. As used herein, “Indenture” means the Base Indenture, as supplemented by the First Supplemental Indenture. The Indenture contains certain restrictive covenants which are subject to a number of limitations and exceptions. Interest for both the 2029 Senior Unsecured Notes and 2032 Senior Unsecured Notes is payable on February 1 and August 1 of each year. The Company is not required to make principal payments on either the 2029 Senior Unsecured Notes or 2032 Senior Unsecured Notes prior to their maturity dates.

In accordance with the Loan Agreement, the Company is required to comply with a leverage ratio financial covenant. As of July 1, 2022, the Company was in compliance with this financial covenant.

In February 2018, the Company issued $1.10 billion aggregate principal amount of convertible senior notes due February 1, 2024 (the “2024 Convertible Notes”). The 2024 Convertible Notes bear interest at an annual rate of 1.50% with interest payable on February 1 and August 1 of each year. The Company is not required to make principal payments on the 2024 Convertible Notes prior to the maturity date.

Holders of the 2024 Convertible Notes may freely convert their 2024 Convertible Notes on or after November 1, 2023 until the close of business on the business day immediately preceding the maturity date at an initial conversion price of $121.91 per share of common stock. Prior to November 1, 2023, holders may convert their 2024 Convertible Notes based on variations in market price of the Company’s common stock in relation to the conversion price or the trading price of the 2024 Convertible Notes or upon the occurrence of specified corporate events. As of July 1, 2022, the Company is required to settle any conversion value with the principal amount of the 2024 Convertible Notes settled in cash and any excess value in cash, shares of the Company’s common stock, or a combination thereof, pursuant to the terms of an indenture, dated as of February 13, 2018 between the Company, HGST, Inc., WD Media, LLC, Western Digital (Fremont), LLC, Western Digital Technologies, Inc. and U.S. Bank National Association, as trustee (the “Trustee”), as supplemented by the first supplemental indenture dated as of June 30, 2022 (the “First Supplemental Indenture”) between the Company and the Trustee. Prior to June 30, 2022, any conversion value on the 2024 Convertible Notes could be settled in cash, shares of the Company’s common stock, or a combination thereof. As of July 1, 2022, none of the conditions allowing holders of the Convertible Notes to convert had been met. Since February 5, 2021, the Company may redeem all or part of the 2024 Convertible Notes, at its option, if the market price of the Company’s stock achieves certain levels.

Through July 1, 2022, the Company had separately accounted for the liability and equity components of the 2024 Convertible Notes. The value of the liability component as of the date of issuance was recognized at the present value of its cash flows using a discount rate of 4.375%, the Company’s borrowing rate at the date of the issuance for a similar debt instrument without the conversion feature, resulting in a debt discount of $165 million, which was allocated to equity as the value of the conversion feature. The 2024 Convertible Notes debt issuance costs were approximately $18 million, of which $15 million was allocated to the debt component and $3 million was allocated to equity. The debt discount and issuance costs are amortized to interest expense over the term of the 2024 Convertible Notes. As of July 1, 2022, debt discount and issuance costs of $52 million remained unamortized. See Note 2, Recent Accounting pronouncements, for a discussion of a change in accounting that became effective July 2, 2022.

In February 2018, the Company issued $2.30 billion aggregate principal amount of senior unsecured notes due February 15, 2026 (the “2026 Senior Unsecured Notes”). The 2026 Senior Unsecured Notes bear interest at an annual rate of 4.750% with interest payable on February 15 and August 15 of each year. The Company is not required to make principal payments on the 2026 Senior Unsecured Notes prior to the maturity date. Issuance costs for the 2026 Senior Unsecured Notes are amortized to interest expense over the term of the 2026 Senior Unsecured Notes and as of July 1, 2022, issuance costs of $9 million remained unamortized.

The Loan Agreement requires the Company to comply with a maximum total funded debt to trailing twelve-month Consolidated Adjusted EBITDA ratio financial covenant. Consolidated Adjusted EBITDA is defined as net income (loss) plus interest expense, income tax expense (benefit) and depreciation and amortization, as well as other contractual adjustments as provided for in the Loan Agreement, including, for purposes of the financial covenants, an addback for certain depreciation-related payments made to the Company’s Flash Ventures. As of July 1, 2022, the Company was in compliance with these financial covenants under the Loan Agreement.

The Loan Agreement also requires the Company and its subsidiaries to comply with customary covenants that include, among others, limitations on the incurrence of additional debt, liens on property, certain asset sales, mergers, consolidations, liquidations and dissolutions. In addition, the indentures governing the Company’s 2026 Senior Unsecured Notes, 2029 Senior Unsecured Notes, 2032 Senior Unsecured Notes and the 2024 Convertible Notes each contain various restrictive covenants, which include limitations on the Company’s and its subsidiaries’ ability to, among other things, consolidate, merge or sell all or substantially all of their assets; create liens; and incur, assume or guarantee additional indebtedness.

Future Debt Payments

As of July 1, 2022, required annual future debt payments were as follows:


	Future Debt Payments
	(in millions)
Fiscal year:

2024	$	1,213
2025	150
2026	2,450
2027	2,287
2028 and thereafter	1,000
Total debt maturities	7,100
Issuance costs and debt discounts	(78)
Net carrying value	$	7,022

- Definition

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

+ References

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+ Details

Pensions and Other Post-retirement Benefit Plans

12 Months Ended

Jul. 01, 2022

Retirement Benefits [Abstract]

Pensions and Other Post-retirement Benefit Plans

Pension and Other Post-Retirement Benefit Plans

The Company has pension and other post-retirement benefit plans in various countries. The Company’s principal pension plans are in Japan, Thailand and the Philippines. All pension and other post-retirement benefit plans outside of the Company’s Japan, Thailand and the Philippines defined benefit pension plans (the “Pension Plans”) are immaterial to the Consolidated Financial Statements.

Obligations and Funded Status

The following table presents the unfunded status of the benefit obligations for the Pension Plans:


	2022		2021		2020
	(in millions)
Change in benefit obligation:
Projected benefit obligation at beginning of period	$	359	$	366	$	352
Service cost	15		16		13
Interest cost	5		5		4
Plan amendments	9		—		—
Actuarial loss (gain)	(31)		(5)		3
Benefits paid	(9)		(11)		(8)
Settlement/curtailment	—		—		—

Non-U.S. currency movement	(54)		(12)		2
Projected benefit obligation at end of period	294		359		366
Change in plan assets:
Fair value of plan assets at beginning of period	227		215		209
Actual return on plan assets	—		20		4
Employer contributions	10		11		9
Benefits paid	(7)		(11)		(8)

Non-U.S. currency movement	(41)		(8)		1
Fair value of plan assets at end of period	189		227		215
Unfunded status	$	105	$	132	$	151

The following table presents the unfunded amounts related to the Pension Plans as recognized on the Company’s Consolidated Balance Sheets:


	July 1, 2022		July 2, 2021
	(in millions)
Current liabilities	$	1	$	1
Non-current liabilities	104		131
Net amount recognized	$	105	$	132

The accumulated benefit obligation for the Pension Plans was $294 million at July 1, 2022. As of July 1, 2022, the Accumulated Other Income pension balance was $13 million. There were no material prior service credits for the defined benefit pension plans recognized in Accumulated other comprehensive loss in the Consolidated Balance Sheet as of July 1, 2022.

Net periodic benefit costs were not material for 2022, 2021, and 2020.

Assumptions

Weighted-Average Assumptions

The weighted-average actuarial assumptions used to determine the projected benefit obligations for the Pension Plans were as follows:



	2022		2021		2020
Discount rate	2.3	%	1.4	%	1.1	%
Rate of compensation increase	2.3	%	2.0	%	2.0	%

The weighted-average actuarial assumptions used to determine benefit costs for the Pension Plans were as follows:



	2022		2021		2020
Discount rate	1.4	%	1.1	%	1.1	%
Expected long-term rate of return on plan assets	2.5	%	2.5	%	2.5	%
Rate of compensation increase	2.0	%	2.0	%	1.7	%

The Company develops a discount rate by calculating when the estimated benefit payments will be due. Management then matches the benefit payments to high quality bonds which match the timing of the expected benefit payments to determine the appropriate discount rate.

The Company develops the expected long-term rate of return on plan assets by analyzing rates of return in each plan as well as the investment portfolio applicable to the plan depending on each plan’s economic environment. The Company’s estimates of future rates of return on assets is based in large part on the projected rate of return from the respective investment managers using a long-term view of historical returns, as well as actuarial recommendations using the most current generational and mortality tables and rates. As of July 1, 2022, Pension Plan assets materially consisted of plan assets related to the Japan Pension Plan and as such the assumption used herein is primarily related to the Japan Pension Plan.

The Company develops the rate of compensation increase assumptions using local compensation practices and historical rates of increases.

Plan Assets

Investment Policies and Strategies

The investment policy in the Pension Plans is to generate a stable return on investments over a long-term horizon in order to have adequate pension funds to meet the Company’s future obligations. In order to achieve this investment goal, a diversified portfolio with target asset allocation and expected rate of return is established by considering factors such as composition of participants, level of funded status, capacity to absorb risks and the current economic environment. The target asset allocation is 55% in debt securities, 30% in equity securities, and the remaining 15% in other assets. Risk management is accomplished through diversification, periodic review of plan asset performance and appropriate realignment of asset allocation. Assumptions regarding the expected long-term rate of return on plan assets are periodically reviewed and are based on the historical trend of returns, the risk and correlation of each asset and the latest economic environment.

The expected long-term rate of return is estimated based on many factors, including expected forecast for inflation, risk premiums for each asset class, expected asset allocation, current and future financial market conditions and diversification and rebalancing strategies. Historical return patterns and correlations, consensus return forecasts and other relevant financial factors are analyzed periodically by the investment advisor so as to ensure that the expected long-term rate of return is reasonable and appropriate.

Fair Value Measurements

The following tables present the Pension Plans’ major asset categories and their associated fair values and net asset values as of July 1, 2022 and July 2, 2021:


	July 1, 2022
	Level 1		Level 2		Level 3		Total
	(in millions)
Plan assets measured at fair value:
Equity:

Equity commingled/mutual funds(1)(2)	$	—	$	63	$	—	$	63
Fixed income:

Fixed income commingled/mutual funds(1)(3)	—		95		—		95



Net plan assets subject to leveling	—		158		—		158

Real estate investment trust at net asset value							31
Total investments at fair value	$	—	$	158	$	—	$	189


	July 2, 2021
	Level 1		Level 2		Level 3		Total
	(in millions)
Plan assets measured at fair value:
Equity:

Equity commingled/mutual funds(1)(2)	$	—	$	73	$	—	$	73
Fixed income:

Fixed income commingled/mutual funds(1)(3)	—		123		—		123



Net plan assets subject to leveling	—		196		—		196

Real estate investment trust at net asset value							30
Total investments at fair value	$	—	$	196	$	—	$	226

(1) Commingled funds represent pooled institutional investments.

(2) Equity mutual funds invest primarily in equity securities.

(3) Fixed income mutual funds invest primarily in fixed income securities.

There were no significant movements of assets between any level categories in 2022 or 2021.

Fair Value Valuation Techniques

Equity securities are valued at the closing price reported on the stock exchange on which the individual securities are traded. Equity commingled/mutual funds are typically valued using the net asset value (“NAV”) provided by the investment manager or administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus liabilities and divided by the number of shares or units outstanding. These assets are classified as either Level 1 or Level 2, depending on availability of quoted market prices for identical or similar assets.

If available, fixed income securities are valued using the close price reported on the major market on which the individual securities are traded and are classified as Level 1. The fair value of other fixed income securities is typically estimated using pricing models and quoted prices of securities with similar characteristics and is generally classified as Level 2.

Cash equivalents includes money market accounts that are valued at their cost plus interest on a daily basis, which approximates fair value. Short-term investments represent securities with original maturities of one year or less. These assets are classified as either Level 1 or Level 2.

Cash Flows

The Company’s expected employer contributions for 2023 and annual benefit payments over the next five years for its Pension Plans are not expected to be material.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 55
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+ Details

Related Parties and Related Commitments and Contingencies

12 Months Ended

Jul. 01, 2022

Commitments and Contingencies Disclosure [Abstract]

Flash Ventures

The Company procures substantially all of its flash-based memory wafers from its business ventures with Kioxia Corporation (“Kioxia”), which consists of three separate legal entities: Flash Partners Ltd. (“Flash Partners”), Flash Alliance Ltd. (“Flash Alliance”), and Flash Forward Ltd. (“Flash Forward”), collectively referred to as “Flash Ventures”. The Company has a 49.9% ownership interest and Kioxia has a 50.1% ownership interest in each of these entities. Through Flash Ventures, the Company and Kioxia collaborate in the development and manufacture of flash-based memory wafers, which are manufactured by Kioxia at its wafer fabrication facilities located in Japan using semiconductor manufacturing equipment individually owned or leased by each Flash Ventures entity. Each Flash Ventures entity purchases wafers from Kioxia at cost and then resells those wafers to the Company and Kioxia at cost plus a markup.

Flash Partners. Flash Partners was formed in 2004 in connection with the construction of Kioxia’s “Y3” 300-millimeter wafer fabrication facility located in Yokkaichi, Japan.

Flash Alliance. Flash Alliance was formed in 2006 in connection with the construction of Kioxia’s “Y4” 300-millimeter wafer fabrication facility located in Yokkaichi, Japan.

Flash Forward. Flash Forward was formed in 2010 in connection with the construction of Kioxia’s “Y5” 300-millimeter wafer fabrication facility located in Yokkaichi, Japan. Y5 was built in two phases of approximately equal size.

New Y2. The Company has a facility agreement with Kioxia related to the construction and operation of Kioxia’s “New Y2” 300-millimeter wafer fabrication facility located in Yokkaichi, Japan. New Y2 primarily provided additional clean room space to convert a portion of 2-dimensional (“2D”) flash-based wafer production capacity to 3-dimensional (“3D”) flash-based wafer production capacity. Production of flash-based wafers in New Y2 started in 2016.

Y6. The Company also has a facility agreement with Kioxia related to the construction and operation of Kioxia’s “Y6” 300-millimeter wafer fabrication facility in Yokkaichi, Japan. Y6 is primarily intended to provide clean room space to continue the transition of existing 2D flash-based wafer capacity to 3D flash-based wafer production capacity. Production of flash-based wafers in Y6 started in 2018.

K1. The Company also has a facility agreement with Kioxia related to the construction and operation of Kioxia’s “K1” 300-millimeter wafer fabrication facility in Kitakami, Japan. The primary purpose of K1 is to provide clean room space to continue the transition of existing flash-based wafer capacity to newer technology nodes. K1 is now fully operational. In connection with the start-up of this facility, as of July 1, 2022, the Company has made prepayments toward future K1 building depreciation aggregating approximately $360 million which are to be credited against future wafer charges. As of July 1, 2022, there were no remaining committed prepayments.

Y7. In January 2022, the Company entered into additional agreements regarding Flash Ventures’ investment in a new wafer fabrication facility currently under construction in Yokkaichi, Japan, referred to as “Y7”. The primary purpose of Y7 is to provide clean room space to continue the transition of existing flash-based wafer capacity to newer flash technology nodes. The Company is committed to pay, among other items, future building depreciation prepayments aggregating approximately $290 million as follows: $268 million in 2023 and $22 million in 2024, to be credited against future wafer charges.

The Company accounts for its ownership position of each entity within Flash Ventures under the equity method of accounting. The financial and other support provided by the Company in all periods presented was either contractually required or the result of a joint decision to expand wafer capacity, transition to new technologies or refinance existing equipment lease commitments. Entities within Flash Ventures are VIEs. The Company evaluated whether it is the primary beneficiary of any of the entities within Flash Ventures for all periods presented and determined that it is not the primary beneficiary of any of the entities within Flash Ventures because it does not have a controlling financial interest in any of those entities. In determining whether the Company is the primary beneficiary, the Company analyzed the primary purpose and design of Flash Ventures, the activities that most significantly impact Flash Ventures’ economic performance, and whether the Company had the power to direct those activities. The Company concluded, based upon its 49.9% ownership, the voting structure and the manner in which the day-to-day operations are conducted for each entity within Flash Ventures, that the Company lacked the power to direct most of the activities that most significantly impact the economic performance of each entity within Flash Ventures.

The following table presents the notes receivable from, and equity investments in, Flash Ventures as of July 1, 2022 and July 2, 2021:


	July 1, 2022		July 2, 2021
	(in millions)
Notes receivable, Flash Partners	$	27	$	191
Notes receivable, Flash Alliance	55		213
Notes receivable, Flash Forward	793		561
Investment in Flash Partners	166		199
Investment in Flash Alliance	243		293
Investment in Flash Forward	112		129
Total notes receivable and investments in Flash Ventures	$	1,396	$	1,586

During 2022, 2021 and 2020, the Company made net payments to Flash Ventures of $4.70 billion, $4.36 billion and $3.09 billion, respectively, for purchased flash-based memory wafers and net loans.

The Company makes, or will make, loans to Flash Ventures to fund equipment investments for new process technologies and additional wafer capacity. The Company aggregates its Flash Ventures’ notes receivable into one class of financing receivables due to the similar ownership interest and common structure in each Flash Venture entity. For all reporting periods presented, no loans were past due and no loan impairments were recorded. The Company’s notes receivable from each Flash Ventures entity, denominated in Japanese yen, are secured by equipment owned by that Flash Ventures entity.

As of July 1, 2022 and July 2, 2021, the Company had Accounts payable balances due to Flash Ventures of $320 million and $398 million, respectively.

The Company’s maximum reasonably estimable loss exposure (excluding lost profits) as a result of its involvement with Flash Ventures, based upon the Japanese yen to U.S. dollar exchange rate at July 1, 2022, is presented below. Investments in Flash Ventures are denominated in Japanese yen, and the maximum estimable loss exposure excludes any cumulative translation adjustment due to revaluation from the Japanese yen to the U.S. dollar.


	July 1, 2022
	(in millions)
Notes receivable	$	875
Equity investments	521
Operating lease guarantees	1,760
Inventory and prepayments	937
Maximum estimable loss exposure	$	4,093

As of July 1, 2022 and July 2, 2021, the Company’s retained earnings included undistributed earnings of Flash Ventures of $43 million and $33 million, respectively.

The Company is obligated to pay for variable costs incurred in producing its share of Flash Ventures’ flash-based memory wafer supply, based on its three-month forecast, which generally equals 50% of Flash Ventures’ output. In addition, the Company is obligated to pay for half of Flash Ventures’ fixed costs regardless of the output the Company chooses to purchase. The Company is not able to estimate its total wafer purchase commitment obligation beyond its rolling three-month purchase commitment because the price is determined by reference to the future cost of producing the semiconductor wafers. In addition, the Company is committed to fund 49.9% to 50.0% of each Flash Ventures entity’s capital investments to the extent that Flash Ventures entity’s operating cash flow is insufficient to fund these investments.

In February 2022, contamination of certain material used in manufacturing processes occurred at both the Yokkaichi and Kitakami, Japan fabrication facilities, resulting in damage to inventory units in production, a temporary disruption to production operations and a reduction in the Company’s flash wafer availability. During 2022, the Company incurred charges of $207 million related to this contamination incident that were recorded in Cost of revenue, which primarily consisted of scrapped inventory and rework costs, decontamination and other costs needed to restore the facilities to normal capacity, and under absorption of overhead costs. The Company is evaluating potential options for recovery.

In June 2019, an unexpected power outage incident occurred at the flash-based memory manufacturing facilities operated by Flash Ventures in Yokkaichi, Japan. The power outage incident impacted the facilities and process tools and resulted in the damage of flash wafers in production and a reduction in the Company’s flash wafer availability. As a result of this incident, the Company incurred charges of $68 million in 2020, which were recorded in Cost of revenue and primarily consisted of the write-off of damaged inventory and unabsorbed manufacturing overhead costs. In 2022 and 2021, the Company recovered $7 million and $75 million, respectively, related to this incident from the utility and its insurance carriers, which was recorded in cost of revenue.

Inventory Purchase Commitments with Flash Ventures. Purchase orders placed under Flash Ventures for up to three months are binding and cannot be canceled.

Research and Development Activities. The Company participates in common R&D activities with Kioxia and is contractually committed to a minimum funding level. R&D commitments are immaterial to the Consolidated Financial Statements.

Off-Balance Sheet Liabilities

Flash Ventures sells to and leases back from a consortium of financial institutions a portion of its tools and has entered into equipment lease agreements of which the Company guarantees half or all of the outstanding obligations under each lease agreement. The lease agreements are subject to customary covenants and cancellation events related to Flash Ventures and each of the guarantors. The occurrence of a cancellation event could result in an acceleration of Flash Ventures’ obligations and a call on the Company’s guarantees.

The following table presents the Company’s portion of the remaining guarantee obligations under the Flash Ventures’ lease facilities in both Japanese yen and U.S. dollar-equivalent, based upon the Japanese yen to U.S. dollar exchange rate as of July 1, 2022.


	Lease Amounts
	(Japanese yen, in billions)		(U.S. dollar, in millions)
Total guarantee obligations	¥	238	$	1,760

The following table details the breakdown of the Company’s remaining guarantee obligations between the principal amortization and the purchase option exercise price at the end of the term of the Flash Ventures lease agreements, in annual installments as of July 1, 2022 in U.S. dollars, based upon the Japanese yen to U.S. dollar exchange rate as of July 1, 2022:


Annual Installments	Payment of Principal Amortization		Purchase Option Exercise Price at Final Lease Terms		Guarantee Amount
	(in millions)
2023	$	505	$	53	$	558
2024	368		96		464
2025	191		88		279
2026	174		133		307
2027 and thereafter	39		113		152

Total guarantee obligations	$	1,277	$	483	$	1,760

The Company and Kioxia have agreed to mutually contribute to, and indemnify each other and Flash Ventures for, environmental remediation costs or liability resulting from Flash Ventures’ manufacturing operations in certain circumstances. The Company has not made any indemnification payments, nor recorded any indemnification receivables, under any such agreements. As of July 1, 2022, no amounts have been accrued in the Consolidated Financial Statements with respect to these indemnification agreements.

Unis Venture

The Company has a joint venture with Unisplendour Corporation Limited and Unissoft (Wuxi) Group Co. Ltd. (“Unis”), referred to as the “Unis Venture”, to market and sell the Company’s products in China and to develop data storage systems for the Chinese market in the future. The Unis Venture is 49% owned by the Company and 51% owned by Unis. The Company accounts for its investment in the Unis Venture under the equity method of accounting. Revenue on products distributed by the Unis Venture is recognized upon sell through to third-party customers. For the years ended July 1, 2022, July 2, 2021 and July 3, 2020, the Company recognized approximately 4%, 3%, and 1% of its consolidated revenue on products distributed by the Unis Venture, respectively. The outstanding accounts receivable due from the Unis Venture were 5% of Accounts receivable, net as of both July 1, 2022 and July 2, 2021.

Leases and Other Commitments

12 Months Ended

Jul. 01, 2022

Leases [Abstract]

Leases and Other Commitments

Leases

The following table summarizes supplemental balance sheet information related to operating leases as of July 1, 2022:


	Lease Amounts
Minimum lease payments by fiscal year:	(in millions)
2023	$	48
2024	48
2025	44
2026	43
2027	39
Thereafter	147
Total future minimum lease payments	369
Less: Imputed Interest	52
Present value of lease liabilities	317
Less: Current portion (included in Accrued expenses)	40
Long-term operating lease liabilities (included in Other liabilities )	$	277

Operating lease right-of-use assets (included in Other non-current assets)	$	300

Weighted average remaining lease term in years	8.3
Weighted average discount rate	3.4		%

The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases for the year ended July 1, 2022:



	July 1, 2022
	(in millions)
Cost of operating leases	$	58
Cash paid for operating leases	51
Operating lease assets obtained in exchange for operating lease liabilities	137

Cost of operating leases was as follows:


	2022		2021		2020
	(in millions)
Cost of operating leases	$	58	$	50	$	55

Purchase Agreements and Other Commitments

In the normal course of business, the Company enters into purchase orders with suppliers for the purchase of components used to manufacture its products. These purchase orders generally cover forecasted component supplies needed for production during the next quarter, are recorded as a liability upon receipt of the components, and generally may be changed or canceled at any time prior to shipment of the components. The Company also enters into long-term agreements with suppliers that contain fixed future commitments, which are contingent on certain conditions such as performance, quality and technology of the vendor’s components. As of July 1, 2022, the Company had the following minimum long-term commitments:


	Long-term commitments
	(in millions)
Fiscal year:
2023	$	572
2024	348
2025	180
2026	53
2027	46
Thereafter	150
Total	$	1,349

Western Digital Corporation 401(k) Plan	12 Months Ended
Western Digital Corporation 401(k) Plan	Jul. 01, 2022
Retirement Benefits [Abstract]
Western Digital Corporation 401(k) Plan	Western Digital Corporation 401(k) Plan The Company maintains the Western Digital Corporation 401(k) Plan (the “Plan”). The Plan covers substantially all domestic employees, subject to certain eligibility requirements. Eligible employees receive employer matching contributions immediately upon hire unless the individual is covered by a collective bargaining agreement, provides services as a consultant, intern, independent contractor, leased or temporary employee, or otherwise is not treated as a common-law employee. Through December 31, 2021, eligible employees were generally able to contribute up to 75% of their eligible compensation on a combined pre-tax and Roth basis, 10% on a combined pre-tax catch-up and Roth catch-up basis, and 10% on a non-Roth after-tax basis subject to Internal Revenue Service (“IRS”) limitations. Effective January 1, 2022, eligible employees are generally able to contribute up to 85% of their eligible compensation on a combined pre-tax and Roth basis regardless of age, and 10% of their eligible compensation on an after-tax basis by payroll withholding. The Company makes a basic matching contribution equal to 50% of each eligible participant’s contribution that does not exceed 6% of the eligible participant’s annual compensation in the year of contribution. Prior to January 1, 2022, the Company’s employer matching contributions vested over a two-year graded period through December 31, 2021 with all unvested contributions vesting on December 31, 2021 and, effective January 1, 2022, the Company’s employer matching contributions vest immediately. The Company may suspend matching contributions at any time at its discretion. Contributions, including the Company’s matching contribution to the Plan, are recorded as soon as administratively possible after the Company makes payroll deductions from Plan participants. For 2022, 2021 and 2020, the Company made Plan contributions of $36 million, $34 million and $33 million, respectively.

Shareholders' Equity

12 Months Ended

Jul. 01, 2022

Share-Based Payment Arrangement [Abstract]

Shareholders' Equity

Shareholders’ Equity

2021 Long-Term Incentive Plan

In November 2021, stockholders approved the Western Digital Corporation 2021 Long-Term Incentive Plan (the “2021 Plan”). Upon the effective date of the 2021 Plan, no new awards were granted under the Western Digital Corporation Amended and Restated 2017 Performance Incentive Plan (the “2017 Plan”). The aggregate maximum number of shares of the Company’s common stock that may be issued pursuant to awards from the 2021 Plan may not exceed (a) 9.5 million shares, less (b) one share of common stock for each share of common stock granted under a prior plan on or after September 5, 2021 and prior to the 2021 Plan’s effective date, plus (c) any shares of common stock subject to outstanding awards under a prior plan as of the effective date that on or after the effective date are forfeited, terminated, expire, lapse without being exercised (to the extent applicable), or are otherwise reacquired by the Company. Any shares subject to awards under the 2017 Plan that are cancelled, forfeited, or otherwise terminate without having vested or been exercised, as applicable, will become available for award grants under the 2021 Plan. The types of awards that may be granted under the 2021 Plan include stock options, stock appreciation rights (“SARs”), RSUs, PSUs, restricted stock and other forms of awards granted or denominated in the Company’s common stock or units of the Company’s common stock, as well as cash awards. Persons eligible to receive awards under the 2021 Plan include officers and employees of the Company or any of its subsidiaries, directors of the Company and certain consultants and advisors to the Company or any of its subsidiaries. The vesting of awards under the 2021 Plan and the 2017 Plan is determined at the date of grant. Each award expires on a date determined at the date of grant; however, the maximum term of options and SARs is ten years after the grant date of the award. RSUs typically vest over periods ranging from two to four years from the date of grant. PSUs are granted to certain employees and vest only after the achievement of pre-determined performance conditions or market conditions and completion of requisite service periods. Once the performance conditions or market conditions are met, vesting of PSUs is generally subject to continued service by the employee. Currently, there are outstanding awards that may vest under the 2017 Plan as well as outstanding awards of stock options under the SanDisk Corporation 2013 Incentive Plan, a plan assumed in connection with the acquisition of SanDisk Corporation, which may affect dilution.

Outstanding RSU and PSU awards have dividend equivalent rights which entitle holders of such outstanding awards to the same dividend value per share as holders of common stock. Dividend equivalent rights are subject to the same vesting and other terms and conditions as the corresponding unvested RSUs and PSUs. Dividend equivalent rights are accumulated and paid in additional shares when the underlying shares vest.

As of July 1, 2022, the maximum number of shares of the Company’s common stock that was authorized for award grants under the 2021 Plan was 10.8 million shares. Shares issued in respect of all awards granted under the 2021 Plan count against the 2021 Plan’s share limit on a one-for-one basis, whereas under the 2017 Plan, shares issued in respect of awards other than stock options and SARs granted count against the 2017 Plan’s share limit as 1.72 shares for every one share issued in connection with such award. The 2021 Plan will terminate on November 22, 2031 unless terminated earlier by the Company’s Board of Directors.

Employee Stock Purchase Plan

Under the Company’s ESPP, eligible employees may authorize payroll deductions of up to 10% of their eligible compensation, subject to IRS limitations, during prescribed offering periods to purchase shares of the Company’s common stock at 95% of the fair market value of common stock either at the beginning of that offering period or on the applicable exercise date, whichever is less. A participant may participate in only one offering period at a time, and a new offering period generally begins each June 1st and December 1st. Each offering period is generally 24 months and consists of four exercise dates (each, generally six months following the start of the offering period or the preceding exercise date, as the case may be). If the fair market value of the Company’s common stock is less on a given exercise date than on the date of grant, employee participation in that offering period ends and participants are automatically re-enrolled in the next new offering period.

During 2022, 2021 and 2020, the Company issued 2.1 million, 3.2 million, and 3.0 million shares, respectively, under the ESPP for aggregate purchase amounts of $113 million, $115 million and $107 million, respectively.

To the extent available, the Company may issue shares out of treasury stock upon the vesting of awards, the exercise of employee stock options and the purchase of shares pursuant to the ESPP.

Stock-based Compensation Expense

The following tables present the Company’s stock-based compensation for equity-settled awards by type and financial statement line as well as the related tax benefit included in the Company’s Consolidated Statements of Operations:



	2022		2021		2020
	(in millions)
Options	$	—	$	—	$	7
RSUs and PSUs	286		282		268
ESPP	40		36		33
Total	$	326	$	318	$	308



	2022		2021		2020
	(in millions)
Cost of revenue	$	48	$	55	$	51
Research and development	167		158		163
Selling, general and administrative	111		105		94

Subtotal	326		318		308
Tax benefit	(48)		(47)		(45)
Total	$	278	$	271	$	263

Windfall tax benefits related to the vesting and exercise of stock-based awards, which are recognized as a component of the Company’s Income tax expense, were not material for the periods presented.

Compensation cost related to unvested RSUs, PSUs, and rights to purchase shares of common stock under the ESPP will generally be amortized on a straight-line basis over the remaining average service period. The following table presents the unamortized compensation cost and weighted average service period of all unvested outstanding awards as of July 1, 2022:


	Unamortized Compensation Costs		Weighted Average Service Period
	(in millions)		(years)

RSUs and PSUs (1)	$	557	2.2
ESPP	61		1.2
Total unamortized compensation cost	$	618

(1) Weighted average service period assumes the performance conditions are met for the PSUs.

Plan Activities

Stock Options

The following table summarizes stock option activity under the Company’s incentive plans:


	Number of Shares	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in millions)			(in years)	(in millions)
Options outstanding at June 28, 2019	3.9	$	65.72


Exercised	(0.8)	43.26			$	12
Canceled or expired	(0.4)	88.58
Options outstanding at July 3, 2020	2.7	69.16


Exercised	(0.4)	44.34			6
Canceled or expired	(0.8)	75.42
Options outstanding at July 2, 2021	1.5	72.84
Exercised	(0.2)	43.80			3
Canceled or expired	(0.4)	97.65
Options outstanding at July 1, 2022	0.9	$	66.76	0.54

No options were granted in 2022, 2021 or 2020. All outstanding options were exercisable at July 1, 2022.

RSUs and PSUs

The following table summarizes RSU and PSU activity under the Company’s incentive plans:


	Number of Shares	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value at Vest Date
	(in millions)			(in millions)
RSUs and PSUs outstanding at June 28, 2019	11.6	$	62.07
Granted	7.4	55.32

Vested	(4.4)	58.36		$	252
Forfeited	(1.3)	63.33
RSUs and PSUs outstanding at July 3, 2020	13.3	60.92
Granted	8.8	40.40

Vested	(4.5)	60.18		196
Forfeited	(1.5)	55.74
RSUs and PSUs outstanding at July 2, 2021	16.1	50.12
Granted	6.9	60.00
Vested	(5.2)	54.27		317
Forfeited	(2.4)	52.14
RSUs and PSUs outstanding at July 1, 2022	15.4	$	52.89

RSUs and PSUs are generally settled in an equal number of shares of the Company’s common stock at the time of vesting of the units.

Fair Value Valuation Assumptions

RSU and PSU Grants

The fair value of the Company’s RSU and PSU awards with a performance condition is determined based upon the closing price of the Company’s stock price on the date of grant. The fair value of PSU awards with a market condition is estimated using a Monte Carlo simulation model on the date of grant using historical volatility.

ESPP — 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 assumptions such as the expected stock price volatility and the expected period until options are exercised. Purchase rights under the ESPP are generally granted on either June 1st or December 1st of each year.

The fair values of ESPP purchase rights have been estimated at the date of grant using a Black-Scholes-Merton option-pricing model with the following weighted average assumptions:



	2022	2021	2020
Weighted-average expected term (in years)	1.25	1.25	1.25
Risk-free interest rate	1.42%	0.10%	0.55%
Stock price volatility	0.48	0.56	0.59
Dividend yield	—%	—%	1.08%
Fair value	$15.56	$21.59	$12.76

Stock Repurchase Program

The Company’s Board of Directors has authorized a stock repurchase program for the repurchase of up to $5.0 billion of the Company’s common stock, which authorization is effective through July 25, 2023. For the year ended July 1, 2022, the Company did not make any stock repurchases and has not repurchased any shares of its common stock pursuant to its stock repurchase program since the first quarter of 2019. Although the Company will reevaluate the repurchasing of common stock when appropriate, there can be no assurance if, when or at what level the Company may resume such activity. The remaining amount available to be repurchased under the Company’s current stock repurchase program as of July 1, 2022 was $4.5 billion. 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.

Stock Reserved for Issuance

The following table summarizes all common stock reserved for issuance at July 1, 2022:


			Number of Shares
			(in millions)
Outstanding awards and shares available for award grants			26
ESPP			4

Total			30

Dividends to Shareholders

The Company issued a quarterly cash dividend from the first quarter of 2013 up to the third quarter of 2020. In April 2020, the Company suspended its dividend to reinvest in the business and to support its ongoing deleveraging efforts.

Income Tax Expense

12 Months Ended

Jul. 01, 2022

Income Tax Disclosure [Abstract]

Income Tax Expense

Income (loss) Before Taxes

The domestic and foreign components of Income (loss) before taxes were as follows:


	2022		2021		2020
	(in millions)
Foreign	$	1,384	$	218	$	(695)
Domestic	739		709		649
Income (loss) before taxes	$	2,123	$	927	$	(46)

Income Tax Expense (Benefit)

The components of the income tax expense (benefit) were as follows:


	2022		2021		2020
	(in millions)
Current:
Foreign	$	143	$	195	$	157
Domestic - Federal	341		154		124
Domestic - State	25		(1)		5
	509		348		286
Deferred:
Foreign	27		(20)		(29)
Domestic - Federal	84		(208)		(53)
Domestic - State	3		(14)		—
	114		(242)		(82)
Income tax expense	$	623	$	106	$	204

The Tax Cuts and Jobs Act (the “2017 Act”), enacted on December 22, 2017, includes a broad range of tax reform proposals affecting businesses. The Company completed its accounting for the tax effects of the enactment of the 2017 Act during the second quarter of 2019. However, the U.S. Treasury and the IRS have issued tax guidance on certain provisions of the 2017 Act since the enactment date, and the Company anticipates the issuance of additional regulatory and interpretive guidance. The Company applied a reasonable interpretation of the 2017 Act along with the then-available guidance in finalizing its accounting for the tax effects of the 2017 Act. Any additional regulatory or interpretive guidance would constitute new information, which may require further refinements to the Company’s estimates in future periods.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in response to the COVID-19 pandemic in the U.S. The CARES Act, among other things, allows net operating losses arising in tax years 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes and increases the business interest expense limitation from 30% to 50% of adjusted taxable income for tax years 2019 and 2020. Additionally, countries around the world implemented emergency tax measures to provide relief similar to the CARES Act. The provisions of the CARES Act and the emergency tax measures around the world did not result in a material cash benefit.

On December 27, 2020, the Consolidated Appropriations Act (the “Appropriations Act”) was enacted to fund the federal government through their fiscal year, extend certain expiring tax provisions and provide additional emergency relief to individuals and businesses related to the COVID-19 pandemic in the U.S. The provisions of the Appropriations Act did not result in a material impact on the Company’s Consolidated Financial Statements.

On March 11, 2021, the American Rescue Plan Act of 2021 (the “Rescue Act”) was enacted to provide additional emergency relief to individuals and businesses related to the COVID-19 pandemic in the U.S. The Rescue Act includes certain business-related provisions, which did not have a material impact on the Company’s Consolidated Financial Statements. The Company continues to monitor and evaluate the regulatory and interpretive guidance related to the CARES Act, the Appropriations Act and the Rescue Act, as well as legislation in other jurisdictions.

On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022, which contained significant law changes related to tax, climate, energy, and health care. The tax measures include, among other things, a corporate alternative minimum tax of 15%. The corporate alternative minimum tax will not be effective for the Company until fiscal year 2024 and the Company is currently evaluating the potential effects of these legislative changes.

Deferred Taxes

Temporary differences and carryforwards, which give rise to a significant portion of deferred tax assets and liabilities were as follows:


	July 1, 2022		July 2, 2021
	(in millions)
Deferred tax assets:
Sales related reserves and accrued expenses not currently deductible	$	71	$	88
Accrued compensation and benefits not currently deductible	114		143
Deferred revenue	—		128
Net operating loss carryforward	195		196
Business credit carryforward	483		461
Long-lived assets	72		101
Other	178		131
Total deferred tax assets	1,113		1,248
Deferred tax liabilities:
Long-lived assets	(128)		(202)
Unremitted earnings of certain non-U.S. entities	(288)		(280)
Other	(17)		(20)
Total deferred tax liabilities	(433)		(502)
Valuation allowances	(580)		(558)
Deferred tax assets, net	$	100	$	188

The net deferred tax asset valuation allowance increased by $22 million primarily due to an increase from the generation of additional business state tax credits carryforwards during the year ended July 1, 2022. The assessment of valuation allowances against deferred tax assets requires estimations and significant judgment. The Company continues to assess and adjust its valuation allowance based on operating results and market conditions. After weighing both the positive and negative evidence available, including, but not limited to, earnings history, projected future outcomes, industry and market trends and the nature of each of the deferred tax assets, the Company determined that it is able to realize most of its deferred tax assets with the exception of certain loss and credit carryforwards.

The Company is permanently reinvested with respect to certain foreign earnings. There is no unrecognized deferred tax liability associated with the repatriation of these foreign undistributed earnings as it can be achieved without additional federal tax consequences.

Effective Tax Rate

Reconciliation of the U.S. Federal statutory rate to the Company’s effective tax rate is as follows:


	2022		2021		2020
U.S. Federal statutory rate	21	%	21	%	21	%
Tax rate differential on international income	(9)		8		(443)


Tax effect of U.S. foreign income inclusion	—		5		(38)
Tax effect of U.S. foreign minimum tax	5		1		(235)
Tax effect of U.S. foreign derived intangible income	(1)		(14)		109
Tax effect of U.S. non-deductible stock-based compensation	1		1		(21)
Tax effect of U.S. permanent differences	—		1		(26)




IRS Tentative Settlement	15		—		—
Change in valuation allowance	1		(7)		(12)
Unremitted earnings of certain non-U.S. entities	1		6		(114)


Foreign income tax credits	(3)		(5)		191
R&D tax credits	(4)		(8)		147
Other	2		2		(22)
Effective tax rate	29	%	11	%	(443)	%

Tax Holidays and Carryforwards

A substantial portion of the Company’s manufacturing operations in Malaysia, the Philippines and Thailand operate under various tax holidays and tax incentive programs, which will expire in whole or in part at various dates during 2024 through 2031. Certain of the holidays may be extended if specific conditions are met. The net impact of these tax holidays and tax incentives was an increase to the Company’s net earnings by $566 million, or $1.79 per diluted share, $390 million, or $1.26 per diluted share, and $464 million, or $1.54 per diluted share, in 2022, 2021, and 2020, respectively.

As of July 1, 2022, the Company had varying amounts of federal and state NOL/tax credit carryforwards that do not expire or, if not used, expire in various years. Following is a summary of the Company’s federal and state NOL/tax credit carryforwards and the related expiration dates of these NOL/tax credit carryforwards:


Jurisdiction	NOL/Tax Credit Carryforward Amount		Expiration
	(in millions)
Federal NOL (Pre 2017 Act Generation)	$	627	2023 to 2038

State NOL	364		2031 to 2038
Federal tax credits	57		2023 to 2043
State tax credits	691		No expiration

The federal and state NOLs and credits relating to various acquisitions are subject to limitations under Sections 382 and 383 of the Internal Revenue Code. The Company expects the total amount of federal and state NOLs ultimately realized will be reduced as a result of these provisions by $125 million and $240 million, respectively. The Company expects the total amount of federal and state credits ultimately realized will be reduced as a result of these provisions by $27 million and $2 million, respectively.

As of July 1, 2022, the Company had varying amounts of foreign NOL carryforwards that do not expire or, if not used, expire in various years, depending on the country. The major jurisdictions that the Company receives foreign NOL carryforwards and the related amounts and expiration dates of these NOL carryforwards are as follows:


Jurisdiction	NOL Carryforward Amount		Expiration
	(in millions)
Malaysia	$	122	2025 to 2028
Belgium	106		No expiration
Japan	84		2024 to 2031
Spain	46		No expiration
Netherlands	12		2025 to 2026

Uncertain Tax Positions

With the exception of certain unrecognized tax benefits that are directly associated with the tax position taken, unrecognized tax benefits are presented gross in the Consolidated Balance Sheets.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits excluding accrued interest and penalties:


	2022		2021		2020
	(in millions)
Unrecognized tax benefit, beginning balance	$	748	$	717	$	695
Gross increases related to current year tax positions	12		21		11
Gross increases related to prior year tax positions	358		46		35
Gross decreases related to prior year tax positions	(65)		(20)		(4)
Settlements	(1)		(9)		(12)
Lapse of statute of limitations	(5)		(7)		(8)

Unrecognized tax benefit, ending balance	$	1,047	$	748	$	717

As of July 1, 2022, July 2, 2021 and July 3, 2020, the portion of the gross unrecognized tax benefits, if recognized, that would affect the effective tax rate is $903 million, $612 million, and $583 million. Interest and penalties related to unrecognized tax benefits are recognized in liabilities recorded for uncertain tax positions and are recorded in the provision for income taxes. Accrued interest and penalties included in the Company’s liability related to unrecognized tax benefits as of July 1, 2022, July 2, 2021 and July 3, 2020 was $254 million, $138 million and $137 million, respectively. As of July 1, 2022, July 2, 2021 and July 3, 2020, the Company’s payables related to unrecognized tax benefits, including accrued interest and penalties, were $1.16 billion, $750 million, and $720 million, respectively. The Company believes it is reasonably likely that payments of approximately $600 million to $700 million may be made within the next twelve months and have classified that portion of these unrecognized tax benefits, including interest, in Income taxes payable on the Consolidated Balance Sheets as of July 1, 2022. The remaining payables related to unrecognized tax benefits are included in Other liabilities on the Consolidated Balance Sheets as of July 1, 2022, July 2, 2021 and July 3, 2020.

The Company files U.S. Federal, U.S. state and foreign tax returns. For both federal and state tax returns, with few exceptions, the Company is subject to examination for 2013 through 2020. The Company is no longer subject to examination by the IRS for periods prior to 2012, although carry forwards generated prior to those periods may still be adjusted upon examination by the IRS or state taxing authority if they either have been or will be used in a subsequent period. In the major foreign jurisdictions where there is no tax holiday, the Company could be subject to examination in China for calendar years 2012 through 2021, in Ireland for calendar year 2018 through fiscal year 2021, in India for fiscal years 2008 through 2021, in Israel for calendar year 2016 through fiscal year 2021 and in Japan for fiscal years 2015 through 2021, in Malaysia for fiscal years 2014 through 2021, in Thailand for fiscal years 2012 through 2021, in Singapore for fiscal years 2018 through 2021, and in the United Kingdom for fiscal years 2017 through 2021.

As previously disclosed, the IRS issued statutory notices of deficiency and notices of proposed adjustments with respect to transfer pricing with the Company’s foreign subsidiaries and intercompany payable balances for years 2008 through 2015. In September 2018 and March 2019, the Company filed petitions with the U.S. Tax Court covering years 2008 through 2012, for which it had received statutory notices of deficiency, while years 2013 through 2015 remain in the jurisdiction of the IRS’s Examination function. The IRS has filed various Amendments to Answer with the U.S. Tax Court which, together with the notices of proposed adjustments, would result in additional federal income tax liabilities totaling approximately $1.6 billion and penalties totaling $449 million with respect to years 2008 through 2015. In May 2022, the Company and the IRS tentatively reached a settlement for resolving the statutory notices of deficiency and notices of proposed adjustments with respect to years 2008 through 2015 subject to the parties entering into final stipulations and a closing agreement. As a result, the trial originally scheduled to take place in May 2022 was cancelled. The tentative settlement for resolution incrementally increased the liability for unrecognized tax benefits, including interest and offsetting tax benefits, by $324 million. Including this incremental increase, the Company expects to pay tax and interest totaling approximately $600 million to $700 million, which the Company expects to be partially offset by future reductions to its mandatory deemed repatriation tax obligations and tax savings from interest deductions aggregating to approximately $100 to $150 million. While the Company continues to work with the IRS to come to a final agreement on the federal tax and interest calculations, the Company is uncertain as to when a final agreement will be reached and the exact timing of when any payments will be made. However, the Company believes it is reasonably likely that these payments may be made within the next twelve months and have classified that portion of these unrecognized tax benefits, including interest in Income taxes payable on its Consolidated Balance Sheet as of July 1,2022. This classification and amount may be subject to change in the next twelve months depending on when the Company is able to reach a final agreement with the IRS.

The Company believes that adequate provision has been made for any adjustments that may result from any other tax examinations. However, the outcome of such tax examinations cannot be predicted with certainty. If any issues addressed in the Company’s tax examinations 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 July 1, 2022, with the exception of the tentative settlement, 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 relating to the examination of the Company’s tax returns.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

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+ Details

Net Income (Loss) Per Common Share

12 Months Ended

Jul. 01, 2022

Earnings Per Share [Abstract]

Net Income (Loss) Per Common Share

The following table presents the computation of basic and diluted income (loss) per common share:



	2022		2021		2020
	(in millions, except per share data)
Net income (loss)	$	1,500	$	821	$	(250)
Weighted average shares outstanding:
Basic	312		305		298
Employee stock options, RSUs, PSUs and ESPP	4		4		—
Diluted	316		309		298
Income (loss) per common share
Basic	$	4.81	$	2.69	$	(0.84)
Diluted	$	4.75	$	2.66	$	(0.84)
Anti-dilutive potential common shares excluded	3		5		15

The Company computes basic income (loss) per common share using Net income (loss) and the Weighted average number of common shares outstanding during the period. Diluted income (loss) per common share is computed using Net income (loss) and the Weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include dilutive outstanding employee stock options, RSUs and PSUs, and rights to purchase shares of common stock under the Company’s ESPP. For 2022, the Company excluded common shares subject to outstanding equity awards from the calculation of diluted shares because their impact would have been anti-dilutive based on the Company’s average stock price during the period. For 2020, the Company recorded net loss, and all shares subject to outstanding equity awards have been excluded for those periods because including them would be anti-dilutive.

Employee Termination, Asset Impairment and Other Charges

12 Months Ended

Jul. 01, 2022

Postemployment Benefits [Abstract]

Employee Termination, Asset Impairment and Other Charges

Employee Termination, Asset Impairment, and Other Charges

The Company recorded the following charges related to employee termination benefits, asset impairment, and other charges:



	2022		2021		2020
	(in millions)
Employee termination and other charges:
Closure of Foreign Manufacturing Facilities	$	—	$	—	$	5
Business Realignment	50		28		44

Employee termination benefits	50		28		49








Gain on disposition of assets:


Business Realignment	(7)		(75)		(17)
Asset impairments and losses (gains) on disposal of assets	(7)		(75)		(17)
Total employee termination, asset impairment, and other charges	$	43	$	(47)	$	32

Closure of Foreign Manufacturing Facilities

In July 2018, the Company announced the closing of its HDD manufacturing facility in Kuala Lumpur, Malaysia, in order to reduce its manufacturing costs and consolidate HDD operations into Thailand. The Company substantially completed the closure in 2019.

Business Realignment

The Company periodically incurs charges as part of the integration process of recent acquisitions and to realign its operations with anticipated market demand, primarily consisting of organization rationalization designed to streamline its business, reduce its cost structure and focus its resources. The Company may also record credits related to gains upon sale of property in connection with these activities. The Company recognized gains related to the disposition of assets associated with these activities $7 million and $75 million for 2022 and 2021, respectively.

The following table presents an analysis of the components of the activity against the reserve, which consisted entirely of employee termination benefits, during the year ended July 1, 2022:


	Employee Termination Benefits
	(in millions)








Accrual balance at July 2, 2021	$	2
Charges	50
Cash payments	(35)

Accrual balance at July 1, 2022	$	17

Legal Proceedings	12 Months Ended
Legal Proceedings	Jul. 01, 2022
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	Legal Proceedings Tax For disclosures regarding statutory notices of deficiency issued by the IRS on June 28, 2018 and December 10, 2018, petitions filed by the Company with the U.S. Tax Court in September 2018 and March 2019, additional penalties asserted by the IRS in March 2021 and further Amendments to Answers filed by the IRS in June 2021 and January 2022, and a tentative resolution with respect to certain matters, see Note 14, Income Tax Expense. Other Matters In the normal course of business, the Company is subject to 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, management believes that any monetary liability or financial impact to the Company from these matters, individually and in the aggregate, would not be material to the Company’s financial condition, results of operations or cash flows. However, any monetary liability and financial impact to the Company from these matters could differ materially from the Company’s expectations.

Organization and Basis of Presentation (Policies)	12 Months Ended
Organization and Basis of Presentation (Policies)	Jul. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The Company has prepared its Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and has adopted accounting policies and practices which are generally accepted in the industry in which it operates. The Company’s significant accounting policies are summarized below.
Fiscal Year	Fiscal YearThe Company’s fiscal year ends on the Friday nearest to June 30 and typically consists of 52 weeks. Approximately every five to six years, we report a 53-week fiscal year to align the fiscal year with the foregoing policy. Fiscal years 2022 and 2021, which ended on July 1, 2022 and July 2, 2021, respectively, are comprised of 52 weeks, with all quarters presented consisting of 13 weeks. Fiscal year 2020, which ended on July 3, 2020, was comprised of 53 weeks, with the first quarter consisting of 14 weeks and the remaining quarters consisting of 13 weeks each. Unless otherwise indicated, references herein to specific years and quarters are to fiscal years and fiscal quarters, and references to financial information are on a consolidated basis.
Segment Reporting	Segment Reporting The Company manufactures, markets, and sells data storage devices and solutions in the U.S. and in foreign countries through its sales personnel, dealers, distributors, retailers, and subsidiaries. Historically, the Company had been managed and reported under a single operating segment. In 2021, the Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (“CODM”), announced a decision to reorganize the Company’s business by forming two separate product business units: flash-based products (“Flash”) and hard disk drives (“HDD”). To align the new operating model and business structure, the Company made management organizational changes and implemented new reporting modules and processes to provide discrete information to manage the business. Effective July 3, 2021, the Company’s management finalized its assessment of the Company’s operating segments and concluded that the Company now has two operating segments: flash-based products and hard disk drives. The CODM evaluates performance of the Company and makes decisions regarding allocation of resources based on each operating segment’s net revenue and gross margin. Because of the integrated nature of the Company’s production and distribution activities, separate segment asset measures are either not available or not used as a basis for the CODM to evaluate the performance of or to allocate resources to the segments.
Basis of Consolidation	Basis of Consolidation The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The functional currency of most of the Company’s foreign subsidiaries is the U.S. dollar. The accounts of these foreign subsidiaries have been remeasured using the U.S. dollar as the functional currency. Gains or losses resulting from remeasurement of these accounts from local currencies into U.S. dollars were immaterial to the Consolidated Financial Statements. Financial statements of the Company’s foreign subsidiaries for which the functional currency is the local currency are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities and a weighted average exchange rate for each period for statement of operations items. Translation adjustments are recorded in accumulated other comprehensive income, a component of shareholders’ equity.
Use of Estimates	Use of Estimates 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 with consideration given to the potential impacts of the ongoing COVID-19 pandemic. However, actual results could differ materially from these estimates.
Cash Equivalents	Cash Equivalents The Company’s cash equivalents represent highly liquid investments in money market funds, which are invested in U.S. Treasury securities and U.S. Government agency securities as well as bank certificates of deposit with original maturities at purchase of three months or less. These deposits are typically in excess of U.S. insured limits. Cash equivalents are carried at cost plus accrued interest, which approximates fair value.
Equity Investments	Equity Investments The Company enters into certain strategic investments for the promotion of business and strategic objectives. The equity method of accounting is used if the Company’s ownership interest is greater than or equal to 20% but less than a majority or where the Company has the ability to exercise significant influence over operating and financial policies. The Company’s equity in the earnings or losses in equity-method investments is recognized in Other income, net, in the Consolidated Statements of Operations. If the Company’s ownership interest is less than 20% and the Company does not have the ability to exercise significant influence over operating and financial policies of the investee, the Company accounts for these investments at fair value, or if these equity securities do not have a readily determinable fair value, these securities are measured and recorded using the measurement alternative under Accounting Standards Update (“ASU”) No. 2016-01, “Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which is cost minus impairment, if any, plus or minus changes resulting from observable price changes. Previously, these investments were accounted for under the cost method of accounting. These investments are recorded within Other non-current assets in the Consolidated Balance Sheets and are periodically analyzed to determine whether or not there are indicators of impairment.
Variable Interest Entities	Variable Interest Entities The Company evaluates its investments and other significant relationships to determine whether any investee is a variable interest entity (“VIE”). If the Company concludes that an investee is a VIE, the Company evaluates its power to direct the activities of the investee, its obligation to absorb the expected losses of the investee and its right to receive the expected residual returns of the investee to determine whether the Company is the primary beneficiary of the investee. If the Company is the primary beneficiary of a VIE, the Company consolidates such entity and reflects the non-controlling interest of other beneficiaries of that entity. The Company does not consolidate any cost method investment or equity method investment entities.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of cash equivalents, 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 fair value of investments that are not accounted for under the equity method is based on appropriate market information.
Inventories	Inventories The Company values inventories at the lower of cost (first-in, first out) or net realizable value. The first-in, first-out method is used to value the cost of the majority of the Company’s inventories. Inventory write-downs are recorded for the valuation of inventory at the lower of cost or net realizable value by analyzing market conditions and estimates of future sales prices as compared to inventory costs and inventory balances. The Company evaluates inventory balances for excess quantities and obsolescence on a regular basis by analyzing estimated demand, inventory on hand, sales levels and other information and reduces inventory balances to net realizable value for excess and obsolete inventory based on this analysis. Unanticipated changes in technology or customer demand could result in a decrease in demand for one or more of the Company’s products, which may require a write down of inventory that could materially affect operating results.
Property, Plant and Equipment	Property, Plant and Equipment Property and equipment are carried at cost less accumulated depreciation and amortization. The cost of property, plant and equipment is depreciated over the estimated useful lives of the respective assets. The Company’s buildings and improvements are depreciated over periods ranging from fifteen to thirty years. The majority of the Company’s machinery and equipment, software, and furniture and fixtures, are depreciated on a straight-line basis over a period of two to seven years. Leasehold improvements are amortized over the lesser of the estimated useful lives of the assets or the related lease terms.
Business Combinations	Business Combinations The application of acquisition accounting to a business combination requires that the Company identify the individual assets acquired and liabilities assumed and estimate the fair value of each. The fair value of assets acquired and liabilities assumed in a business acquisition are recognized at the acquisition date using a combination of valuation techniques, with the purchase price exceeding the fair values being recognized as goodwill. Determining fair value of identifiable assets, particularly intangibles, liabilities acquired and contingent obligations assumed requires management to make estimates. In certain circumstances, the allocations of the excess purchase price are based upon preliminary estimates and assumptions and subject to revision when the Company receives final information, including appraisals and other analyses. Accordingly, the measurement period for such purchase price allocations will end when the information, or the facts and circumstances, becomes available, but will not exceed twelve months. The Company will recognize measurement-period adjustments during the period of resolution, including the effect on earnings of any amounts that would have been recorded in previous periods if the accounting had been completed at the acquisition date. Goodwill and intangible assets often represent a significant portion of the assets acquired in a business combination. The Company recognizes the fair value of an acquired intangible apart from goodwill whenever the intangible arises from contractual or other legal rights, or when it can be separated or divided from the acquired entity and sold, transferred, licensed, rented or exchanged, either individually or in combination with a related contract, asset or liability. Intangible assets consist primarily of technology, customer relationships, and trade name and trademarks acquired in business combinations and in-process research and development (“IPR&D”). The Company’s assessment of IPR&D also includes consideration of the risk of the projects not achieving technological feasibility.
Goodwill and Other Long-Lived Assets	Goodwill and Other Long-Lived Assets Goodwill is not amortized. Instead, it is tested for impairment on an annual basis or more frequently whenever events or changes in circumstances indicate that goodwill may be impaired. The Company performs an annual impairment test as of the beginning of its fourth quarter. The Company uses qualitative factors to determine whether goodwill is more likely than not impaired and whether a quantitative test for impairment is considered necessary. If the Company concludes from the qualitative assessment that goodwill is more likely than not impaired, the Company is required to perform a quantitative approach to determine the amount of impairment. The Company’s assessment resulted in no impairment of goodwill in 2022, 2021, or 2020. The Company is required to use judgment when applying the goodwill impairment test, including the identification of reporting units, assignment of assets, liabilities and goodwill to reporting units, and determination of the fair value of each reporting unit. In addition, the estimates used to determine the fair value of reporting units may change based on results of operations, macroeconomic conditions or other factors. Changes in these estimates could materially affect the Company’s assessment of the fair value and goodwill impairment. If the Company’s stock price decreases significantly, goodwill could become impaired, which could result in a material charge and adversely affect the Company’s results of operations. IPR&D is an intangible asset accounted as an indefinite-lived asset until the completion or abandonment of the associated research and development effort. During the development period, the Company conducts an IPR&D impairment test annually and whenever events or changes in facts and circumstances indicate that it is more likely than not that the IPR&D is impaired. Events which might indicate impairment include, but are not limited to, adverse cost factors, strategic decisions made in response to economic, market, and competitive conditions, and the impact of the economic environment the Company and on its customer base. If impairment is indicated, the impairment is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Other long-lived assets are depreciated or amortized over their estimated useful lives based on the pattern in which the economic benefits are expected to be received. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If impairment is indicated, the impairment is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The estimates of fair value require evaluation of future market conditions and product lifecycles as well as projected revenue, earnings and cash flow.
Revenue and Accounts Receivable	Revenue and Accounts Receivable The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to the customer. The transaction price to be recognized as revenue is adjusted for variable consideration, such as sales incentives, and excludes amounts collected on behalf of third parties, including taxes imposed by governmental authorities. The Company’s performance obligations are typically not constrained based on the Company’s history with similar transactions and that uncertainties are resolved in a fairly short period of time. Substantially all of the Company’s revenue is from the sale of tangible products for which the performance obligations are satisfied at a point in time, generally upon delivery. The Company’s services revenue mainly includes professional service arrangements and post contract customer support, warranty as a service and maintenance contracts. The performance obligations for the Company’s services are generally satisfied ratably over the service period based on the nature of the service provided and contract terms. Similarly, revenue from patent licensing arrangements is recognized based on whether the arrangement provides the customer a right to use or right to access the IP. Revenue for a right to use arrangement is recognized at the time the control of the license is transferred to the customer. Revenue for a right to access arrangement is recognized over the contract period using the time lapse method. For the sales-based royalty arrangements, the Company estimates and recognizes revenue in the period in which customers’ licensable sales occur. The Company’s customer payment terms are typically less than two months from the date control over the product or service is transferred to the customer. The Company uses the practical expedient and does not recognize a significant financing component for payment considerations of less than one year. The financing components of contracts with payment terms were not material. The Company provides distributors and retailers (collectively referred to as “resellers”) with limited price protection for inventories held by resellers at the time of published list price reductions. The Company also provides resellers and original equipment manufacturers (“OEMs”) with other sales incentive programs. The Company records estimated variable consideration related to these items as a reduction to revenue at the time of revenue recognition. The Company uses judgment in its assessment of variable consideration in contracts to be included in the transaction price. The Company uses the expected value method to arrive at the amount of variable consideration. The Company constrains variable consideration until the likelihood of a significant revenue reversal is not probable and believes that the expected value method is the appropriate estimate of the amount of variable consideration based on the fact that the Company has a large number of contracts with similar characteristics. For sales to OEMs, the Company’s methodology for estimating variable consideration is based on the amount of consideration expected to be earned based on the OEMs’ volume of purchases from the Company or other agreed upon sales incentive programs. For sales to resellers, the Company’s methodology for estimating variable consideration is based on several factors including historical pricing information, current pricing trends and channel inventory levels. Differences between the estimated and actual amounts of variable consideration are recognized as adjustments to revenue. Marketing development program costs are typically recorded as a reduction of the transaction price and, therefore, of revenue. The Company nets sales rebates against open customer receivable balances if the criteria to offset are met, otherwise they are recorded within other accrued liabilities. For contracts with multiple performance obligations, the Company evaluates whether each deliverable is a distinct promise and should be accounted for as a separate performance obligation. If a promised good or service is not distinct in accordance with the revenue guidance, the Company combines that good or service with the other promised goods or services in the arrangement until a distinct bundle of goods is identified. If applicable, the Company allocates the transaction price to the performance obligations of each distinct product or service, or distinct bundle, based on their relative standalone selling prices. The Company records an allowance for doubtful accounts by analyzing specific customer accounts and assessing the risk of loss based on insolvency or other collection issues. In addition, the Company routinely analyzes the various receivable aging categories to establish reserves based on a combination of past due receivables and expected future losses. If the financial condition of a significant customer deteriorates resulting in its inability to pay its accounts when due, or if the Company’s overall loss trajectory changes significantly, an adjustment in the Company’s allowance for doubtful accounts would be required, which could materially affect operating results.
Warranty	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, with a small number of products having a warranty ranging up to ten years or more. 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. For warranties ten years or greater, including lifetime warranties, the Company uses the estimated useful life of the product to calculate the warranty exposure. 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 product 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 and could differ significantly from the estimates.
Litigation and Other Contingencies	Litigation and Other ContingenciesWhen 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. 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.
Advertising Expense	Advertising Expense Advertising costs are expensed as incurred and amounted to $88 million, $84 million and $93 million in 2022, 2021 and 2020, respectively. These expenses are included in Selling, general and administrative in the Consolidated Statements of Operations.
Research and Development Expense	Research and Development Expense Research and development (“R&D”) expenditures are expensed as incurred.
Income Taxes	Income Taxes The Company accounts for income taxes under the asset and liability method, which provides that deferred tax assets and liabilities be recognized for temporary differences between the financial reporting basis and the tax basis of assets and liabilities and expected benefits of utilizing net operating loss (“NOL”) and tax credit carryforwards. The Company records a valuation allowance when it is more likely than not that the deferred tax assets will not be realized. Each quarter, the Company evaluates the need for a valuation allowance for its deferred tax assets and adjusts the valuation allowance so that the Company records net deferred tax assets only to the extent that it has concluded it is more likely than not that these deferred tax assets will be realized. The Company accounts for interest and penalties related to income taxes as a component of the provision for income taxes. The Company recognizes liabilities for uncertain tax positions based on a two-step process. To the extent a tax position does not meet a more-likely-than-not level of certainty, no benefit is recognized in the financial statements. If a position meets the more-likely-than-not level of certainty, it is recognized in the financial statements at the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. Interest and penalties related to unrecognized tax benefits are recognized in liabilities recorded for uncertain tax positions and are recorded in the provision for income taxes. The actual liability for unrealized tax benefits in any such contingency may be materially different from the Company’s estimates, which could result in the need to record additional liabilities for unrecognized tax benefits or potentially adjust previously-recorded liabilities for unrealized tax benefits, and may materially affect the Company’s operating results.
Income per Common Share	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 dilutive outstanding employee stock options, restricted stock unit awards (“RSU”), restricted stock unit awards with performance conditions or market conditions (“PSU”), rights to purchase shares of common stock under the Company’s Employee Stock Purchase Plan (“ESPP”) and shares issuable in connection with convertible debt.
Stock-based Compensation	Stock-based Compensation The Company accounts for all stock-based compensation at fair value. Stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. The fair values of RSUs and PSUs with a performance condition are determined based on the closing market price of the Company’s stock on the date of the grant. The fair values of all ESPP purchase rights are estimated using the Black-Scholes-Merton option-pricing model and require the input of highly subjective assumptions. The fair values of PSUs with a market condition are estimated using a Monte Carlo simulation model. PSUs are granted to certain employees and vest only after the achievement of pre-determined performance or market conditions. Once these conditions are met, vesting of PSUs is subject to continued service by the employee. At the end of each reporting period, the Company evaluates the probability that PSUs with a performance condition will be earned and records the related stock-based compensation expense over the service period. Compensation expense for PSUs with market conditions is recognized ratably over the required service period regardless of expected or actual achievement.
Other Comprehensive Income (Loss), Net of Tax	Other Comprehensive Income (Loss), Net of Tax Other comprehensive income (loss), net of tax 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), net of tax is primarily comprised of unrealized gains or losses on foreign exchange contracts and interest rate swap agreements designated as cash flow hedges, foreign currency translation, and actuarial gains or losses related to pensions.
Derivative Contracts	Derivative Contracts The majority of the Company’s transactions are in U.S. dollars; however, some transactions are based in various foreign currencies. The Company purchases 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. Substantially all of 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 speculative or trading purposes. The Company had foreign exchange contracts with commercial banks for British pound sterling, European euro, Japanese yen, Malaysian ringgit, Philippine peso, Thai baht, Korean won and Israeli shekel, which had an aggregate notional amount of $6.07 billion and $4.88 billion at July 1, 2022 and July 2, 2021, respectively. If the derivative is designated as a cash flow hedge and is determined to be highly effective, 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 are reported in Cost of revenue and Operating expenses, and presented within cash flows from operating activities. The Company accounts for its interest rate swaps as designated cash flow hedges to mitigate variations in interest payments under a portion of its Secured Overnight Financing Rate (“SOFR”)-based term loans. The Company pays interest monthly at a fixed rate and receives interest monthly at the SOFR on the notional amount of the contract with realized gains or losses recognized in Interest expense. 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 Consolidated Financial Statements for all years presented. A change in the fair value of undesignated hedges is recognized in earnings in the period incurred and is reported in Other income, net.
Pensions and Other Post-Retirement Benefit Plans	Pensions and Other Post-Retirement Benefit Plans The Company has defined benefit pension plans and other post-retirement plans covering certain employees in various countries. The benefits are based on the employees’ years of service and compensation. The plans are funded in conformity with the funding requirements of applicable government authorities. The Company amortizes unrecognized actuarial gains and losses and prior service costs on a straight-line basis over the remaining estimated average service life of the participants. The measurement date for the plans is the Company’s year-end. The Company recognizes the funded status of its defined benefit pension and post-retirement plans in the Consolidated Balance Sheets, with actuarial changes in the funded status recognized through accumulated other comprehensive income (loss) in the year in which such changes occur. The Company reports the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. In addition, the other components of net benefit cost are presented in Other income, net in the Consolidated Statements of Operations.
Leases	Leases Effective June 29, 2019, the first day of the year ended July 3, 2020, the Company adopted ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) which resulted in an after-tax decrease to opening retained earnings of $5 million for the cumulative effect of adoption, primarily due to previously recorded sublease proceed assumptions on lease exit liabilities for which there was no expected future economic benefit at transition. The Company leases certain domestic and international facilities and data center space under long-term, non-cancelable operating leases that expire at various dates through 2034. These leases include no material variable or contingent lease payments. Operating lease assets and liabilities are recognized based on the present value of the remaining lease payments discounted using the Company’s incremental borrowing rate. Operating lease assets also include prepaid lease payments minus any lease incentives. Extension or termination options present in the Company’s lease agreements are included in determining the right-of-use asset and lease liability when it is reasonably certain the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.
Accounting Pronouncements Recently Adopted	Accounting Pronouncements Recently Adopted In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 removes certain exceptions for recognizing deferred taxes for investments, performing intraperiod allocation and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The Company adopted this ASU on July 3, 2021, the first day of the year ended July 1, 2022, with no material impact on its Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”). ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock and results in fewer instruments with embedded conversion features being separately recognized from the host contract as compared with current standards. Those instruments that do not have a separately recognized embedded conversion feature will no longer recognize a debt issuance discount related to such a conversion feature and would recognize less interest expense on a periodic basis. Additionally, the ASU amends the calculation of the share dilution impact related to a conversion feature and eliminates the treasury method as an option. The Company adopted the new standard effective July 2, 2022, the first day of the year ending June 30, 2023, using the modified retrospective method. On the date of adoption, the Company recorded a reduction in Additional Paid-In Capital of $128 million, a reduction of unamortized debt discount of $48 million, a reduction of deferred income tax liabilities of $11 million, and an increase to retained earnings of $91 million retained earnings for 2023 for the after-tax impact of previously recognized amortization of the debt discount associated with the Company’s convertible senior notes. In November 2021, the FASB issued ASU No. 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance” (“ASU 2021-10”). ASU 2021-10 increases the transparency of government assistance received by requiring most business entities to disclose information about government assistance received, including (1) the types of assistance, (2) the entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. This ASU is effective for fiscal years (and interim periods within those fiscal years) beginning after December 15, 2021, which for the Company is the first quarter of 2023. Early adoption is permitted. The Company expects to adopt this standard in the first quarter of 2023 and does not expect any material impact from the adoption of this standard.
Fair Value Measurements and Investments	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.

Business Segments, Geographic Information, and Concentrations of Risk (Tables)

12 Months Ended

Jul. 01, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table summarizes the operating performance of the Company’s reportable segments:


	2022			2021			2020
	(in millions, except percentages)
Net revenue:
Flash	$	9,753		$	8,706		$	7,769
HDD	9,040			8,216			8,967
Total net revenue	$	18,793		$	16,922		$	16,736
Gross profit:
Flash	$	3,527		$	2,611		$	1,903
HDD	2,661			2,221			2,602
Total gross profit for segments	6,188			4,832			4,505
Unallocated corporate items:
Amortization of acquired intangible assets	(66)			(331)			(610)
Stock-based compensation expense	(48)			(55)			(51)
Contamination related charges	(207)			—			—
Recoveries from a power outage incident	7			75			(68)
Other	—			—			5
Total unallocated corporate items	(314)			(311)			(724)
Consolidated gross profit	$	5,874		$	4,521		$	3,781
Gross margin:
Flash	36.2		%	30.0		%	24.5		%
HDD	29.4		%	27.0		%	29.0		%
Consolidated gross margin	31.3		%	26.7		%	22.6		%

Schedule of Goodwill

The following table provides a summary of goodwill activity for the period:


	Flash		HDD		Total
	(in millions)






Balance at July 2, 2021	$	5,738	$	4,328	$	10,066
Reduction in goodwill in connection with disposition of business	(14)		—		(14)
Foreign currency translation adjustment	(6)		(5)		(11)

Balance at July 1, 2022	$	5,718	$	4,323	$	10,041

Schedule of Disaggregation of Revenue

The Company’s disaggregated revenue information is as follows:


	2022		2021		2020
	(in millions)
Revenue by End Market
Cloud	$	8,017	$	5,723	$	7,018
Client	7,076		7,281		6,335
Consumer	3,700		3,918		3,383
Total Revenue	$	18,793	$	16,922	$	16,736

Schedule of Revenue from External Customers by Geographic Areas


	2022		2021		2020
	(in millions)
Net revenue (1)
United States	$	5,411	$	3,789	$	4,679
China	4,525		4,339		4,075
Hong Kong	3,645		3,624		2,592
Rest of Asia	1,884		1,492		1,699
Europe, Middle East and Africa	2,872		3,061		2,926
Other	456		617		765
Total	$	18,793	$	16,922	$	16,736

Schedule of Long-lived Assets by Geographic Areas


	2022		2021
	(in millions)
Long-lived assets (1)
United States	$	1,130	$	1,068
Malaysia	831		632
China	441		395
Thailand	816		651
Rest of Asia	406		398
Europe, Middle East and Africa	46		44
Total	$	3,670	$	3,188

(1) Long-lived assets include property, plant and equipment and are attributed to the geographic location in which they are located.

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (g)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1A
-URI https://asc.fasb.org/extlink&oid=121556970&loc=SL108378252-109267

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13854-109267

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 55
-Paragraph 24
-URI https://asc.fasb.org/extlink&oid=122137925&loc=d3e14258-109268

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 350
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267

+ Details

Supplemental Financial Statement Data (Tables)

12 Months Ended

Jul. 01, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Inventories

Inventories


	July 1, 2022		July 2, 2021
	(in millions)
Inventories:
Raw materials and component parts	$	1,603	$	1,623
Work-in-process	1,162		1,088
Finished goods	873		905
Total inventories	$	3,638	$	3,616

Schedule of Property, Plant and Equipment

Property, plant and equipment, net


	July 1, 2022		July 2, 2021
	(in millions)
Property, plant and equipment:
Land	$	269	$	278
Buildings and improvements	1,920		1,854
Machinery and equipment	8,642		7,860
Computer equipment and software	494		440
Furniture and fixtures	54		51
Construction-in-process	591		476
Property, plant and equipment, gross	11,970		10,959
Accumulated depreciation	(8,300)		(7,771)
Property, plant and equipment, net	$	3,670	$	3,188

Schedule of Intangible Assets

The following tables present intangible assets as of July 1, 2022 and July 2, 2021:


	July 1, 2022
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(in millions)
Finite:
Existing technology	3	$	4,231	$	(4,231)	$	—
Trade names and trademarks	7	648		(573)		75
Customer relationships	6	613		(555)		58

Leasehold interests	31	1		(1)		—
Total finite intangible assets		5,493		(5,360)		133
In-process research and development		80		—		80
Total intangible assets		$	5,573	$	(5,360)	$	213


	July 2, 2021
	Weighted Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(in years)	(in millions)
Finite:
Existing technology	3	$	4,231	$	(4,165)	$	66
Trade names and trademarks	7	647		(486)		161
Customer relationships	6	618		(491)		127

Leasehold interests	31	12		(4)		8
Total finite intangible assets		5,508		(5,146)		362
In-process research and development		80		—		80
Total intangible assets		$	5,588	$	(5,146)	$	442

Schedule of Intangible Asset Amortization

Intangible assets are amortized over the estimated useful lives based on the pattern in which the economic benefits are expected to be received. Intangible asset amortization was as follows:


	2022		2021		2020
	(in millions)
Intangible asset amortization	$	221	$	486	$	769

Schedule of Movement in Standard Product Warranty Accrual and Total Warranty Accrual

Product warranty liability

Changes in the warranty accrual were as follows:



	2022		2021		2020
	(in millions)
Warranty accrual, beginning of period	$	363	$	408	$	350

Charges to operations	146		137		203
Utilization	(103)		(106)		(151)
Changes in estimate related to pre-existing warranties	(61)		(76)		6
Warranty accrual, end of period	$	345	$	363	$	408

The current portion of the warranty accrual is classified in Accrued expenses and the long-term portion is classified in Other liabilities as noted below:


	2022		2021
	(in millions)
Warranty accrual
Current portion (included in Accrued expenses)	$	162	$	175
Long-term portion (included in Other liabilities)	183		188
Total warranty accrual	$	345	$	363

Schedule of Other Noncurrent Liabilities

Other liabilities


	2022		2021
	(in millions)
Other liabilities:
Non-current net tax payable	$	659	$	684
Non-current portion of unrecognized tax benefits	477		750
Other non-current liabilities	643		633
Total other liabilities	$	1,779	$	2,067

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table illustrates the changes in the balances of each component of AOCI:


	Actuarial Pension Gains (Losses)		Foreign Currency Translation Adjustment		Unrealized Gains (Losses) on Derivative Contracts		Total Accumulated Comprehensive Income (Loss)
	(in millions)
Balance at July 3, 2020	$	(58)	$	(2)	$	(97)	$	(157)
Other comprehensive income (loss) before reclassifications	27		(36)		42		33
Amounts reclassified from accumulated other comprehensive loss	—		—		(75)		(75)
Income tax benefit (expense) related to items of other comprehensive loss	(4)		—		6		2
Net current-period other comprehensive income (loss)	23		(36)		(27)		(40)
Balance at July 2, 2021	(35)		(38)		(124)		(197)
Other comprehensive income (loss) before reclassifications	26		(239)		(352)		(565)
Amounts reclassified from accumulated other comprehensive income (loss)	—		—		172		172
Income tax benefit (expense) related to items of other comprehensive income (loss)	(2)		—		38		36
Net current-period other comprehensive income (loss)	24		(239)		(142)		(357)
Balance at July 1, 2022	$	(11)	$	(277)	$	(266)	$	(554)

Fair Value Measurements and Investments (Tables)

12 Months Ended

Jul. 01, 2022

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis


	July 1, 2022
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:

Cash equivalents - Money market funds	$	266	$	—	$	—	$	266


















Foreign exchange contracts	—		61		—		61


Interest rate swap contracts	—		3		—		3
Total assets at fair value	$	266	$	64	$	—	$	330
Liabilities:
Foreign exchange contracts	$	—	$	316	$	—	$	316


Total liabilities at fair value	$	—	$	316	$	—	$	316


	July 2, 2021
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:

Cash equivalents - Money market funds	$	1,283	$	—	$	—	$	1,283


















Foreign exchange contracts	—		14		—		14


Total assets at fair value	$	1,283	$	14	$	—	$	1,297
Liabilities:
Foreign exchange contracts	$	—	$	65	$	—	$	65
Interest rate swap contracts	—		80		—		80

Total liabilities at fair value	$	—	$	145	$	—	$	145


	July 1, 2022				July 2, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)





1.50% convertible notes due 2024	$	1,048	$	1,040	$	1,017	$	1,173

4.75% senior unsecured notes due 2026	2,291		2,205		2,288		2,556





Variable interest rate Term Loan A-2 maturing 2027	2,693		2,621		—		—
2.85% senior unsecured notes due 2029	495		412		—		—
3.10% senior unsecured notes due 2032	495		389		—		—
Variable interest rate Term Loan B-4	—		—		1,093		1,094
Variable interest rate Term Loan A-1	—		—		4,327		4,346
Total	$	7,022	$	6,667	$	8,725	$	9,169

Debt (Tables)

12 Months Ended

Jul. 01, 2022

Debt Disclosure [Abstract]

Schedule of Debt

Debt consisted of the following as of July 1, 2022 and July 2, 2021:


	July 1, 2022		July 2, 2021
	(in millions)
1.50% convertible notes due 2024	$	1,100	$	1,100
4.75% senior unsecured notes due 2026	2,300		2,300
Variable interest rate Term Loan A-2 maturing 2027	2,700		—
2.85% senior unsecured notes due 2029	500		—
3.10% senior unsecured notes due 2032	500		—
Variable interest rate Term Loan A-1	—		4,332
Variable interest rate Term Loan B-4	—		1,093
Total debt	7,100		8,825
Issuance costs and debt discounts	(78)		(100)
Subtotal	7,022		8,725
Less current portion of long-term debt	—		(251)
Long-term debt	$	7,022	$	8,474

Schedule of Maturities of Long-term Debt

As of July 1, 2022, required annual future debt payments were as follows:


	Future Debt Payments
	(in millions)
Fiscal year:

2024	$	1,213
2025	150
2026	2,450
2027	2,287
2028 and thereafter	1,000
Total debt maturities	7,100
Issuance costs and debt discounts	(78)
Net carrying value	$	7,022

Pensions and Other Post-retirement Benefit Plans (Tables)

12 Months Ended

Jul. 01, 2022

Retirement Benefits [Abstract]

Schedule of Obligations and Funded Status

The following table presents the unfunded status of the benefit obligations for the Pension Plans:


	2022		2021		2020
	(in millions)
Change in benefit obligation:
Projected benefit obligation at beginning of period	$	359	$	366	$	352
Service cost	15		16		13
Interest cost	5		5		4
Plan amendments	9		—		—
Actuarial loss (gain)	(31)		(5)		3
Benefits paid	(9)		(11)		(8)
Settlement/curtailment	—		—		—

Non-U.S. currency movement	(54)		(12)		2
Projected benefit obligation at end of period	294		359		366
Change in plan assets:
Fair value of plan assets at beginning of period	227		215		209
Actual return on plan assets	—		20		4
Employer contributions	10		11		9
Benefits paid	(7)		(11)		(8)

Non-U.S. currency movement	(41)		(8)		1
Fair value of plan assets at end of period	189		227		215
Unfunded status	$	105	$	132	$	151

Schedule of Unfunded Amounts Recognized on Consolidated Balance Sheets

The following table presents the unfunded amounts related to the Pension Plans as recognized on the Company’s Consolidated Balance Sheets:


	July 1, 2022		July 2, 2021
	(in millions)
Current liabilities	$	1	$	1
Non-current liabilities	104		131
Net amount recognized	$	105	$	132

Schedule of Assumptions Used

The weighted-average actuarial assumptions used to determine the projected benefit obligations for the Pension Plans were as follows:



	2022		2021		2020
Discount rate	2.3	%	1.4	%	1.1	%
Rate of compensation increase	2.3	%	2.0	%	2.0	%

The weighted-average actuarial assumptions used to determine benefit costs for the Pension Plans were as follows:



	2022		2021		2020
Discount rate	1.4	%	1.1	%	1.1	%
Expected long-term rate of return on plan assets	2.5	%	2.5	%	2.5	%
Rate of compensation increase	2.0	%	2.0	%	1.7	%

Schedule of Defined Benefit Plans Disclosures

The following tables present the Pension Plans’ major asset categories and their associated fair values and net asset values as of July 1, 2022 and July 2, 2021:


	July 1, 2022
	Level 1		Level 2		Level 3		Total
	(in millions)
Plan assets measured at fair value:
Equity:

Equity commingled/mutual funds(1)(2)	$	—	$	63	$	—	$	63
Fixed income:

Fixed income commingled/mutual funds(1)(3)	—		95		—		95



Net plan assets subject to leveling	—		158		—		158

Real estate investment trust at net asset value							31
Total investments at fair value	$	—	$	158	$	—	$	189


	July 2, 2021
	Level 1		Level 2		Level 3		Total
	(in millions)
Plan assets measured at fair value:
Equity:

Equity commingled/mutual funds(1)(2)	$	—	$	73	$	—	$	73
Fixed income:

Fixed income commingled/mutual funds(1)(3)	—		123		—		123



Net plan assets subject to leveling	—		196		—		196

Real estate investment trust at net asset value							30
Total investments at fair value	$	—	$	196	$	—	$	226

(1) Commingled funds represent pooled institutional investments.

(2) Equity mutual funds invest primarily in equity securities.

(3) Fixed income mutual funds invest primarily in fixed income securities.

Related Parties and Related Commitments and Contingencies (Tables)

12 Months Ended

Jul. 01, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Notes Receivable and Investments in Related Parties

The following table presents the notes receivable from, and equity investments in, Flash Ventures as of July 1, 2022 and July 2, 2021:


	July 1, 2022		July 2, 2021
	(in millions)
Notes receivable, Flash Partners	$	27	$	191
Notes receivable, Flash Alliance	55		213
Notes receivable, Flash Forward	793		561
Investment in Flash Partners	166		199
Investment in Flash Alliance	243		293
Investment in Flash Forward	112		129
Total notes receivable and investments in Flash Ventures	$	1,396	$	1,586

Schedule of Variable Interest Entity Maximum Loss Exposure


	July 1, 2022
	(in millions)
Notes receivable	$	875
Equity investments	521
Operating lease guarantees	1,760
Inventory and prepayments	937
Maximum estimable loss exposure	$	4,093

Schedule of Guarantor Obligations


	Lease Amounts
	(Japanese yen, in billions)		(U.S. dollar, in millions)
Total guarantee obligations	¥	238	$	1,760

Schedule of Remaining Guarantee Obligations


Annual Installments	Payment of Principal Amortization		Purchase Option Exercise Price at Final Lease Terms		Guarantee Amount
	(in millions)
2023	$	505	$	53	$	558
2024	368		96		464
2025	191		88		279
2026	174		133		307
2027 and thereafter	39		113		152

Total guarantee obligations	$	1,277	$	483	$	1,760

Leases and Other Commitments (Tables)

12 Months Ended

Jul. 01, 2022

Leases [Abstract]

Schedule of Lessee, Operating Leases, Supplemental Balance Sheet Disclosures

The following table summarizes supplemental balance sheet information related to operating leases as of July 1, 2022:


	Lease Amounts
Minimum lease payments by fiscal year:	(in millions)
2023	$	48
2024	48
2025	44
2026	43
2027	39
Thereafter	147
Total future minimum lease payments	369
Less: Imputed Interest	52
Present value of lease liabilities	317
Less: Current portion (included in Accrued expenses)	40
Long-term operating lease liabilities (included in Other liabilities )	$	277

Operating lease right-of-use assets (included in Other non-current assets)	$	300

Weighted average remaining lease term in years	8.3
Weighted average discount rate	3.4		%

Schedule of Lease, Cost

The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases for the year ended July 1, 2022:



	July 1, 2022
	(in millions)
Cost of operating leases	$	58
Cash paid for operating leases	51
Operating lease assets obtained in exchange for operating lease liabilities	137

Cost of operating leases was as follows:


	2022		2021		2020
	(in millions)
Cost of operating leases	$	58	$	50	$	55

Schedule of Long-term Purchase Agreements

As of July 1, 2022, the Company had the following minimum long-term commitments:


	Long-term commitments
	(in millions)
Fiscal year:
2023	$	572
2024	348
2025	180
2026	53
2027	46
Thereafter	150
Total	$	1,349

Shareholders' Equity (Tables)

12 Months Ended

Jul. 01, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Disclosure of Share-based Compensation Arrangements by Share-based Payment Award



	2022		2021		2020
	(in millions)
Options	$	—	$	—	$	7
RSUs and PSUs	286		282		268
ESPP	40		36		33
Total	$	326	$	318	$	308



	2022		2021		2020
	(in millions)
Cost of revenue	$	48	$	55	$	51
Research and development	167		158		163
Selling, general and administrative	111		105		94

Subtotal	326		318		308
Tax benefit	(48)		(47)		(45)
Total	$	278	$	271	$	263

Schedule of Employee Service Share-based Compensation , Unrecognized Costs

The following table presents the unamortized compensation cost and weighted average service period of all unvested outstanding awards as of July 1, 2022:


	Unamortized Compensation Costs		Weighted Average Service Period
	(in millions)		(years)

RSUs and PSUs (1)	$	557	2.2
ESPP	61		1.2
Total unamortized compensation cost	$	618

(1) Weighted average service period assumes the performance conditions are met for the PSUs.

Schedule of Stock Option Activity

The following table summarizes stock option activity under the Company’s incentive plans:


	Number of Shares	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in millions)			(in years)	(in millions)
Options outstanding at June 28, 2019	3.9	$	65.72


Exercised	(0.8)	43.26			$	12
Canceled or expired	(0.4)	88.58
Options outstanding at July 3, 2020	2.7	69.16


Exercised	(0.4)	44.34			6
Canceled or expired	(0.8)	75.42
Options outstanding at July 2, 2021	1.5	72.84
Exercised	(0.2)	43.80			3
Canceled or expired	(0.4)	97.65
Options outstanding at July 1, 2022	0.9	$	66.76	0.54

Schedule of Restricted Stock Unit

The following table summarizes RSU and PSU activity under the Company’s incentive plans:


	Number of Shares	Weighted Average Grant Date Fair Value		Aggregate Intrinsic Value at Vest Date
	(in millions)			(in millions)
RSUs and PSUs outstanding at June 28, 2019	11.6	$	62.07
Granted	7.4	55.32

Vested	(4.4)	58.36		$	252
Forfeited	(1.3)	63.33
RSUs and PSUs outstanding at July 3, 2020	13.3	60.92
Granted	8.8	40.40

Vested	(4.5)	60.18		196
Forfeited	(1.5)	55.74
RSUs and PSUs outstanding at July 2, 2021	16.1	50.12
Granted	6.9	60.00
Vested	(5.2)	54.27		317
Forfeited	(2.4)	52.14
RSUs and PSUs outstanding at July 1, 2022	15.4	$	52.89

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions

The fair values of ESPP purchase rights have been estimated at the date of grant using a Black-Scholes-Merton option-pricing model with the following weighted average assumptions:



	2022	2021	2020
Weighted-average expected term (in years)	1.25	1.25	1.25
Risk-free interest rate	1.42%	0.10%	0.55%
Stock price volatility	0.48	0.56	0.59
Dividend yield	—%	—%	1.08%
Fair value	$15.56	$21.59	$12.76

Schedule of Shares of Common Stock Reserved for Issuance Table

The following table summarizes all common stock reserved for issuance at July 1, 2022:


			Number of Shares
			(in millions)
Outstanding awards and shares available for award grants			26
ESPP			4

Total			30

Income Tax Expense (Tables)

12 Months Ended

Jul. 01, 2022

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of Income (loss) before taxes were as follows:


	2022		2021		2020
	(in millions)
Foreign	$	1,384	$	218	$	(695)
Domestic	739		709		649
Income (loss) before taxes	$	2,123	$	927	$	(46)

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax expense (benefit) were as follows:


	2022		2021		2020
	(in millions)
Current:
Foreign	$	143	$	195	$	157
Domestic - Federal	341		154		124
Domestic - State	25		(1)		5
	509		348		286
Deferred:
Foreign	27		(20)		(29)
Domestic - Federal	84		(208)		(53)
Domestic - State	3		(14)		—
	114		(242)		(82)
Income tax expense	$	623	$	106	$	204

Schedule of Deferred Tax Assets and Liabilities

Temporary differences and carryforwards, which give rise to a significant portion of deferred tax assets and liabilities were as follows:


	July 1, 2022		July 2, 2021
	(in millions)
Deferred tax assets:
Sales related reserves and accrued expenses not currently deductible	$	71	$	88
Accrued compensation and benefits not currently deductible	114		143
Deferred revenue	—		128
Net operating loss carryforward	195		196
Business credit carryforward	483		461
Long-lived assets	72		101
Other	178		131
Total deferred tax assets	1,113		1,248
Deferred tax liabilities:
Long-lived assets	(128)		(202)
Unremitted earnings of certain non-U.S. entities	(288)		(280)
Other	(17)		(20)
Total deferred tax liabilities	(433)		(502)
Valuation allowances	(580)		(558)
Deferred tax assets, net	$	100	$	188

Schedule of Effective Income Tax Rate Reconciliation

Reconciliation of the U.S. Federal statutory rate to the Company’s effective tax rate is as follows:


	2022		2021		2020
U.S. Federal statutory rate	21	%	21	%	21	%
Tax rate differential on international income	(9)		8		(443)


Tax effect of U.S. foreign income inclusion	—		5		(38)
Tax effect of U.S. foreign minimum tax	5		1		(235)
Tax effect of U.S. foreign derived intangible income	(1)		(14)		109
Tax effect of U.S. non-deductible stock-based compensation	1		1		(21)
Tax effect of U.S. permanent differences	—		1		(26)




IRS Tentative Settlement	15		—		—
Change in valuation allowance	1		(7)		(12)
Unremitted earnings of certain non-U.S. entities	1		6		(114)


Foreign income tax credits	(3)		(5)		191
R&D tax credits	(4)		(8)		147
Other	2		2		(22)
Effective tax rate	29	%	11	%	(443)	%

Schedule of Operating Loss Carryforwards

Following is a summary of the Company’s federal and state NOL/tax credit carryforwards and the related expiration dates of these NOL/tax credit carryforwards:


Jurisdiction	NOL/Tax Credit Carryforward Amount		Expiration
	(in millions)
Federal NOL (Pre 2017 Act Generation)	$	627	2023 to 2038

State NOL	364		2031 to 2038
Federal tax credits	57		2023 to 2043
State tax credits	691		No expiration

The major jurisdictions that the Company receives foreign NOL carryforwards and the related amounts and expiration dates of these NOL carryforwards are as follows:


Jurisdiction	NOL Carryforward Amount		Expiration
	(in millions)
Malaysia	$	122	2025 to 2028
Belgium	106		No expiration
Japan	84		2024 to 2031
Spain	46		No expiration
Netherlands	12		2025 to 2026

Schedule of Income Tax Contingencies

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits excluding accrued interest and penalties:


	2022		2021		2020
	(in millions)
Unrecognized tax benefit, beginning balance	$	748	$	717	$	695
Gross increases related to current year tax positions	12		21		11
Gross increases related to prior year tax positions	358		46		35
Gross decreases related to prior year tax positions	(65)		(20)		(4)
Settlements	(1)		(9)		(12)
Lapse of statute of limitations	(5)		(7)		(8)

Unrecognized tax benefit, ending balance	$	1,047	$	748	$	717

Net Income (Loss) Per Common Share (Tables)

12 Months Ended

Jul. 01, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the computation of basic and diluted income (loss) per common share:



	2022		2021		2020
	(in millions, except per share data)
Net income (loss)	$	1,500	$	821	$	(250)
Weighted average shares outstanding:
Basic	312		305		298
Employee stock options, RSUs, PSUs and ESPP	4		4		—
Diluted	316		309		298
Income (loss) per common share
Basic	$	4.81	$	2.69	$	(0.84)
Diluted	$	4.75	$	2.66	$	(0.84)
Anti-dilutive potential common shares excluded	3		5		15

Employee Termination, Asset Impairment and Other Charges (Tables)

12 Months Ended

Jul. 01, 2022

Postemployment Benefits [Abstract]

Schedule of Restructuring Reserve by Type of Cost

The Company recorded the following charges related to employee termination benefits, asset impairment, and other charges:



	2022		2021		2020
	(in millions)
Employee termination and other charges:
Closure of Foreign Manufacturing Facilities	$	—	$	—	$	5
Business Realignment	50		28		44

Employee termination benefits	50		28		49








Gain on disposition of assets:


Business Realignment	(7)		(75)		(17)
Asset impairments and losses (gains) on disposal of assets	(7)		(75)		(17)
Total employee termination, asset impairment, and other charges	$	43	$	(47)	$	32

The following table presents an analysis of the components of the activity against the reserve, which consisted entirely of employee termination benefits, during the year ended July 1, 2022:


	Employee Termination Benefits
	(in millions)








Accrual balance at July 2, 2021	$	2
Charges	50
Cash payments	(35)

Accrual balance at July 1, 2022	$	17

Organization and Basis of Presentation - Additional Information (Details)	12 Months Ended
	Jul. 01, 2022 USD ($) segment	Jul. 02, 2021 USD ($) segment	Jul. 03, 2020 USD ($)	Jun. 29, 2019 USD ($)	Jun. 28, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of operating segments \| segment	2	2
Goodwill impairment	$ 0	$ 0	$ 0
Product warranty term	5 years
Advertising expense	$ 88,000,000	84,000,000	93,000,000
Notional amount	6,070,000,000.00	4,880,000,000
Cumulative adjustment to retained earnings	(12,221,000,000)	(10,721,000,000)	(9,551,000,000)		$ (9,967,000,000)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative adjustment to retained earnings	$ (9,039,000,000)	$ (7,539,000,000)	(6,725,000,000)		(7,449,000,000)
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative adjustment to retained earnings			7,000,000		5,000,000
Cumulative Effect, Period of Adoption, Adjustment \| Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative adjustment to retained earnings			$ 7,000,000	$ 5,000,000	$ 5,000,000
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Product warranty term	1 year
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Product warranty term	10 years

Organization and Basis of Presentation - Property, Plant and Equipment Useful Life (Details)	12 Months Ended
	Jul. 01, 2022
Minimum \| Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	15 years
Minimum \| Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	2 years
Maximum \| Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	30 years
Maximum \| Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	7 years

Recent Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Millions	Jul. 02, 2022	Jul. 01, 2022	Jul. 02, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Additional paid-in capital		$ (3,733)	$ (3,608)
Retained earnings		$ 9,039	$ 7,539
Accounting Standards Update 2020-06 \| Subsequent Event \| Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Additional paid-in capital	$ 128
Debt discount	48
Deferred income tax liabilities	11
Retained earnings	$ 91

Business Segments, Geographic Information, and Concentrations of Risk - Segment Reporting Information, by Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Segment Reporting Information [Line Items]
Revenue, net	$ 18,793	$ 16,922	$ 16,736
Gross profit	5,874	4,521	3,781
Amortization of acquired intangible assets	221	486	769
Stock-based compensation expense	326	318	308
Total operating expenses	$ 3,483	$ 3,301	$ 3,446
Gross margin, percentage	31.30%	26.70%	22.60%
Operating Segments
Segment Reporting Information [Line Items]
Revenue, net	$ 18,793	$ 16,922	$ 16,736
Gross profit	6,188	4,832	4,505
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Amortization of acquired intangible assets	(66)	(331)	(610)
Stock-based compensation expense	(48)	(55)	(51)
Contamination related charges	(207)	0	0
Recoveries from a power outage incident	7	75	(68)
Other	0	0	5
Total operating expenses	$ (314)	$ (311)	$ (724)
Flash
Segment Reporting Information [Line Items]
Gross margin, percentage	36.20%	30.00%	24.50%
Flash \| Operating Segments
Segment Reporting Information [Line Items]
Revenue, net	$ 9,753	$ 8,706	$ 7,769
Gross profit	$ 3,527	$ 2,611	$ 1,903
HDD
Segment Reporting Information [Line Items]
Gross margin, percentage	29.40%	27.00%	29.00%
HDD \| Operating Segments
Segment Reporting Information [Line Items]
Revenue, net	$ 9,040	$ 8,216	$ 8,967
Gross profit	$ 2,661	$ 2,221	$ 2,602

Business Segments, Geographic Information, and Concentrations of Risk - Additional Information (Details) $ in Millions	1 Months Ended	12 Months Ended
	May 31, 2022 USD ($)	Jul. 01, 2022 USD ($) segment	Jul. 02, 2021 USD ($) segment	Jul. 03, 2020 USD ($)
Concentration Risk [Line Items]
Secured borrowings, gross, difference, amount	$ 25
Employee termination, asset impairment, and other charges	$ 9	$ 43	$ (47)	$ 32
Number of operating segments \| segment		2	2
Accounts receivable, net		$ 2,804	$ 2,257
Kingston Technology Company
Concentration Risk [Line Items]
Entity wide accounts receivable major customer percentage			12.00%
Customer Concentration Risk \| Top Ten Customers \| Revenue from Contract with Customer
Concentration Risk [Line Items]
Concentration risk, percentage		45.00%	39.00%	42.00%

Business Segments, Geographic Information, and Concentrations of Risk - Goodwill Rollforward (Details) $ in Millions	12 Months Ended
	Jul. 01, 2022 USD ($)
Goodwill [Roll Forward]
Goodwill balance, beginning of period	$ 10,066
Reduction in goodwill in connection with disposition of business	(14)
Foreign currency translation adjustment	(11)
Goodwill balance, end of period	10,041
Flash
Goodwill [Roll Forward]
Goodwill balance, beginning of period	5,738
Reduction in goodwill in connection with disposition of business	(14)
Foreign currency translation adjustment	(6)
Goodwill balance, end of period	5,718
HDD
Goodwill [Roll Forward]
Goodwill balance, beginning of period	4,328
Reduction in goodwill in connection with disposition of business	0
Foreign currency translation adjustment	(5)
Goodwill balance, end of period	$ 4,323

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Business Segments, Geographic Information, and Concentrations of Risk - Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Disaggregation of Revenue [Line Items]
Revenue, net	$ 18,793	$ 16,922	$ 16,736
Cloud
Disaggregation of Revenue [Line Items]
Revenue, net	8,017	5,723	7,018
Client
Disaggregation of Revenue [Line Items]
Revenue, net	7,076	7,281	6,335
Consumer
Disaggregation of Revenue [Line Items]
Revenue, net	$ 3,700	$ 3,918	$ 3,383

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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-Paragraph 4
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-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 22
-Subparagraph (b)
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
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-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Business Segments, Geographic Information, and Concentrations of Risk - Revenue by Geography (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Revenue from External Customer [Line Items]
Revenue, net	$ 18,793	$ 16,922	$ 16,736
United States
Revenue from External Customer [Line Items]
Revenue, net	5,411	3,789	4,679
China
Revenue from External Customer [Line Items]
Revenue, net	4,525	4,339	4,075
Hong Kong
Revenue from External Customer [Line Items]
Revenue, net	3,645	3,624	2,592
Rest of Asia
Revenue from External Customer [Line Items]
Revenue, net	1,884	1,492	1,699
Europe, Middle East and Africa
Revenue from External Customer [Line Items]
Revenue, net	2,872	3,061	2,926
Other
Revenue from External Customer [Line Items]
Revenue, net	$ 456	$ 617	$ 765

- Definition

+ References

+ Details

Business Segments, Geographic Information, and Concentrations of Risk - Long-lived Assets by Geography (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 3,670	$ 3,188
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	1,130	1,068
Malaysia
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	831	632
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	441	395
Thailand
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	816	651
Rest of Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	406	398
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 46	$ 44

Revenues - Revenue Remaining Performance Obligation (Details) $ in Millions	Jul. 01, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 45
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-02
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 43
Revenue, remaining performance obligation period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 2
Revenue, remaining performance obligation period

Supplemental Financial Statement Data - Additional Information (Details) - USD ($)	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Proceeds on sale of trade accounts receivable	$ 400,000,000	$ 233,000,000	$ 411,000,000
Factored receivables outstanding	300,000,000	0
Depreciation	708,000,000	726,000,000	797,000,000
Impairment charges related to intangible assets	0	0	$ 0
Finite-Lived Intangible Assets, Net	133,000,000	362,000,000
Loss, reclassification, after tax	125,000,000	50,000,000
Other comprehensive loss, foreign currency transaction and translation adjustment, net of tax	$ 47,000,000	$ 25,000,000

Supplemental Financial Statement Data - Inventory (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021
Inventories:
Raw materials and component parts	$ 1,603	$ 1,623
Work-in-process	1,162	1,088
Finished goods	873	905
Total inventories	$ 3,638	$ 3,616

Supplemental Financial Statement Data - Property, Plant and Equipment (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021
Property, plant and equipment:
Property, plant and equipment, gross	$ 11,970	$ 10,959
Accumulated depreciation	(8,300)	(7,771)
Property, plant and equipment, net	3,670	3,188
Land
Property, plant and equipment:
Property, plant and equipment, gross	269	278
Buildings and improvements
Property, plant and equipment:
Property, plant and equipment, gross	1,920	1,854
Machinery and equipment
Property, plant and equipment:
Property, plant and equipment, gross	8,642	7,860
Computer equipment and software
Property, plant and equipment:
Property, plant and equipment, gross	494	440
Furniture and fixtures
Property, plant and equipment:
Property, plant and equipment, gross	54	51
Construction-in-process
Property, plant and equipment:
Property, plant and equipment, gross	$ 591	$ 476

Supplemental Financial Statement Data - Intangible Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 5,493	$ 5,508
Total intangible assets, gross	5,573	5,588
Accumulated Amortization	(5,360)	(5,146)
Net Carrying Amount	133	362
Total intangible assets, net	$ 213	$ 442
Existing technology
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	3 years	3 years
Gross Carrying Amount	$ 4,231	$ 4,231
Accumulated Amortization	(4,231)	(4,165)
Net Carrying Amount	$ 0	$ 66
Trade names and trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	7 years	7 years
Gross Carrying Amount	$ 648	$ 647
Accumulated Amortization	(573)	(486)
Net Carrying Amount	$ 75	$ 161
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	6 years	6 years
Gross Carrying Amount	$ 613	$ 618
Accumulated Amortization	(555)	(491)
Net Carrying Amount	$ 58	$ 127
Leasehold interests
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	31 years	31 years
Gross Carrying Amount	$ 1	$ 12
Accumulated Amortization	(1)	(4)
Net Carrying Amount	0	8
In-process research and development
Finite-Lived Intangible Assets [Line Items]
In-process research and development	$ 80	$ 80

Supplemental Financial Statement Data - Intangible Asset Amortization (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Intangible asset amortization	$ 221	$ 486	$ 769

Supplemental Financial Statement Data - Movement in Standard Product Warranty Accrual (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty accrual, beginning of period	$ 363	$ 408	$ 350
Charges to operations	146	137	203
Utilization	(103)	(106)	(151)
Changes in estimate related to pre-existing warranties	(61)	(76)	6
Warranty accrual, end of period	$ 345	$ 363	$ 408

Supplemental Financial Statement Data - Total Warranty Accrual (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020	Jun. 28, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Current portion (included in Accrued expenses)	$ 162	$ 175
Long-term portion (included in Other liabilities)	183	188
Total warranty accrual	$ 345	$ 363	$ 408	$ 350

Supplemental Financial Statement Data - Other Liabilities (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021
Other liabilities:
Non-current net tax payable	$ 659	$ 684
Non-current portion of unrecognized tax benefits	477	750
Other non-current liabilities	643	633
Total other liabilities	$ 1,779	$ 2,067

Supplemental Financial Statement Data - Accumulated Other Comprehensive Income (Loss) Roll Forward (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 10,721	$ 9,551
Other comprehensive income (loss) before reclassifications	(565)	33
Amounts reclassified from accumulated other comprehensive income (loss)	172	(75)
Income tax benefit (expense) related to items of other comprehensive income (loss)	36	2
Net current-period other comprehensive income (loss)	(357)	(40)
Ending balance	12,221	10,721
Actuarial Pension Gains (Losses)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(35)	(58)
Other comprehensive income (loss) before reclassifications	26	27
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Income tax benefit (expense) related to items of other comprehensive income (loss)	(2)	(4)
Net current-period other comprehensive income (loss)	24	23
Ending balance	(11)	(35)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(38)	(2)
Other comprehensive income (loss) before reclassifications	(239)	(36)
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Income tax benefit (expense) related to items of other comprehensive income (loss)	0	0
Net current-period other comprehensive income (loss)	(239)	(36)
Ending balance	(277)	(38)
Unrealized Gains (Losses) on Derivative Contracts
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(124)	(97)
Other comprehensive income (loss) before reclassifications	(352)	42
Amounts reclassified from accumulated other comprehensive income (loss)	172	(75)
Income tax benefit (expense) related to items of other comprehensive income (loss)	38	6
Net current-period other comprehensive income (loss)	(142)	(27)
Ending balance	(266)	(124)
AOCI Attributable to Parent
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(197)	(157)
Ending balance	$ (554)	$ (197)

Fair Value Measurements and Investments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021
ASSETS
Total assets at fair value	$ 330	$ 1,297
Liabilities:
Total liabilities at fair value	316	145
Level 1
ASSETS
Total assets at fair value	266	1,283
Liabilities:
Total liabilities at fair value	0	0
Level 2
ASSETS
Total assets at fair value	64	14
Liabilities:
Total liabilities at fair value	316	145
Level 3
ASSETS
Total assets at fair value	0	0
Liabilities:
Total liabilities at fair value	0	0
Money market funds
ASSETS
Cash equivalents	266	1,283
Money market funds \| Level 1
ASSETS
Cash equivalents	266	1,283
Money market funds \| Level 2
ASSETS
Cash equivalents	0	0
Money market funds \| Level 3
ASSETS
Cash equivalents	0	0
Foreign exchange contracts
ASSETS
Derivative asset	61	14
Liabilities:
Derivative liability	316	65
Foreign exchange contracts \| Level 1
ASSETS
Derivative asset	0	0
Liabilities:
Derivative liability	0	0
Foreign exchange contracts \| Level 2
ASSETS
Derivative asset	61	14
Liabilities:
Derivative liability	316	65
Foreign exchange contracts \| Level 3
ASSETS
Derivative asset	0	0
Liabilities:
Derivative liability	0	0
Interest rate swap contracts
ASSETS
Derivative asset	3
Liabilities:
Derivative liability		80
Interest rate swap contracts \| Level 1
ASSETS
Derivative asset	0
Liabilities:
Derivative liability		0
Interest rate swap contracts \| Level 2
ASSETS
Derivative asset	3
Liabilities:
Derivative liability		80
Interest rate swap contracts \| Level 3
ASSETS
Derivative asset	$ 0
Liabilities:
Derivative liability		$ 0

Fair Value Measurements and Investments - Debt Instrument Fair Value (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021	Feb. 28, 2018
1.50% convertible notes due 2024 \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	1.50%	1.50%	1.50%
4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	4.75%	4.75%	4.75%
2.85% senior unsecured notes due 2029
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	2.85%	2.85%
3.10% senior unsecured notes due 2032
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	3.10%	3.10%
Reported Value Measurement
Debt Instrument [Line Items]
Long-term debt	$ 7,022	$ 8,725
Reported Value Measurement \| 1.50% convertible notes due 2024
Debt Instrument [Line Items]
Long-term debt	1,048	1,017
Reported Value Measurement \| 4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Long-term debt	2,291	2,288
Reported Value Measurement \| Variable interest rate Term Loan A-2 maturing 2027
Debt Instrument [Line Items]
Long-term debt	2,693	0
Reported Value Measurement \| 2.85% senior unsecured notes due 2029
Debt Instrument [Line Items]
Long-term debt	495	0
Reported Value Measurement \| 3.10% senior unsecured notes due 2032
Debt Instrument [Line Items]
Long-term debt	495	0
Reported Value Measurement \| Variable interest rate Term Loan B-4
Debt Instrument [Line Items]
Long-term debt	0	1,093
Reported Value Measurement \| Variable interest rate Term Loan A-1
Debt Instrument [Line Items]
Long-term debt	0	4,327
Level 2 \| Estimate of Fair Value Measurement
Debt Instrument [Line Items]
Long-term debt	6,667	9,169
Level 2 \| Estimate of Fair Value Measurement \| 1.50% convertible notes due 2024
Debt Instrument [Line Items]
Long-term debt	1,040	1,173
Level 2 \| Estimate of Fair Value Measurement \| 4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Long-term debt	2,205	2,556
Level 2 \| Estimate of Fair Value Measurement \| Variable interest rate Term Loan A-2 maturing 2027
Debt Instrument [Line Items]
Long-term debt	2,621	0
Level 2 \| Estimate of Fair Value Measurement \| 2.85% senior unsecured notes due 2029
Debt Instrument [Line Items]
Long-term debt	412	0
Level 2 \| Estimate of Fair Value Measurement \| 3.10% senior unsecured notes due 2032
Debt Instrument [Line Items]
Long-term debt	389	0
Level 2 \| Estimate of Fair Value Measurement \| Variable interest rate Term Loan B-4
Debt Instrument [Line Items]
Long-term debt	0	1,094
Level 2 \| Estimate of Fair Value Measurement \| Variable interest rate Term Loan A-1
Debt Instrument [Line Items]
Long-term debt	$ 0	$ 4,346

Derivatives Instruments and Hedging Activities - Additional Information (Details)	12 Months Ended
	Jul. 01, 2022
Foreign Exchange Forward Contracts Designated
Derivative Instruments, Gain (Loss) [Line Items]
Derivative, term of contract	12 months

Debt - Schedule of Debt (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021	Feb. 28, 2018
Debt Instrument [Line Items]
Debt instrument, carrying amount	$ 7,100	$ 8,825
Issuance costs and debt discounts	(78)	(100)
Net carrying value	7,022	8,725
Less current portion of long-term debt	0	(251)
Long-term debt	$ 7,022	$ 8,474
4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	4.75%	4.75%	4.75%
Debt instrument, carrying amount	$ 2,300	$ 2,300
Variable interest rate Term Loan A-2 maturing 2027
Debt Instrument [Line Items]
Debt instrument, carrying amount	$ 2,700	$ 0
2.85% senior unsecured notes due 2029
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	2.85%	2.85%
Debt instrument, carrying amount	$ 500	$ 0
3.10% senior unsecured notes due 2032
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	3.10%	3.10%
Debt instrument, carrying amount	$ 500	$ 0
Variable interest rate Term Loan A-1
Debt Instrument [Line Items]
Debt instrument, carrying amount	0	4,332
Variable interest rate Term Loan B-4
Debt Instrument [Line Items]
Debt instrument, carrying amount	$ 0	$ 1,093
Convertible Debt \| 1.50% convertible notes due 2024
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	1.50%	1.50%	1.50%
Debt instrument, carrying amount	$ 1,100	$ 1,100
Issuance costs and debt discounts	$ (52)

Debt - Additional Information (Details) - USD ($)		12 Months Ended
Debt - Additional Information (Details) - USD ($)	Jan. 07, 2022	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020	Dec. 31, 2021	Feb. 28, 2018
Debt Instrument [Line Items]
Repayment of debt		$ 3,621,000,000	$ 886,000,000	$ 982,000,000
Issuance costs and debt discounts		78,000,000	$ 100,000,000
July 1, 2022 through March 31, 2023
Debt Instrument [Line Items]
Quarterly installment payments		38,000,000
Variable interest rate Term Loan A-2 maturing 2027
Debt Instrument [Line Items]
Debt instrument, face amount	$ 3,000,000,000	150,000,000
Repayment of debt		300,000,000
Unamortized costs		$ 7,000,000
Variable interest rate Term Loan A-2 maturing 2027 \| Base Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.125%
Variable interest rate Term Loan A-2 maturing 2027 \| Base Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Variable interest rate Term Loan A-2 maturing 2027 \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.375%
Variable interest rate Term Loan A-2 maturing 2027 \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.125%
Variable interest rate Term Loan A-2 maturing 2027 \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Revolving Credit Facility, 2027 \| Revolving credit facility maturing 2023
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 2,250,000,000
Line of Credit Facility, Commitment Fee Percentage	0.20%
Revolving Credit Facility, 2027 \| Revolving credit facility maturing 2023 \| Minimum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.12%
Revolving Credit Facility, 2027 \| Revolving credit facility maturing 2023 \| Maximum
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Percentage	0.35%
Revolving Credit Facility, 2027 \| Revolving credit facility maturing 2023 \| Base Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.125%
Revolving Credit Facility, 2027 \| Revolving credit facility maturing 2023 \| Base Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Revolving Credit Facility, 2027 \| Revolving credit facility maturing 2023 \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.375%
Revolving Credit Facility, 2027 \| Revolving credit facility maturing 2023 \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.125%
Revolving Credit Facility, 2027 \| Revolving credit facility maturing 2023 \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
2.85% senior unsecured notes due 2029
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)		2.85%	2.85%
2.85% senior unsecured notes due 2029 \| Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount					$ 500,000,000
Debt instrument, interest rate (percentage)					2.85%
3.100% senior unsecured notes due 2032 \| Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount					$ 500,000,000
Debt instrument, interest rate (percentage)					3.10%
1.50% convertible notes due 2024 \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, face amount						$ 1,100,000,000
Debt instrument, interest rate (percentage)		1.50%	1.50%			1.50%
Conversion price (in dollars per share)						$ 121.91
Issuance costs and debt discounts		$ 52,000,000
Debt discount		165,000,000
Debt issuance costs, net		18,000,000
Debt issuance costs		15,000,000
Excess capital		$ 3,000,000
1.50% convertible notes due 2024 \| Convertible Debt \| Measurement Input, Discount Rate
Debt Instrument [Line Items]
Debt instrument. measurement input		0.04375
4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Debt instrument, face amount						$ 2,300,000,000
Debt instrument, interest rate (percentage)		4.75%	4.75%			4.75%
Debt issuance costs, net						$ 9,000,000

Debt - Debt Maturities (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021
Debt Disclosure [Abstract]
2024	$ 1,213
2025	150
2026	2,450
2027	2,287
2028 and thereafter	1,000
Total debt maturities	7,100	$ 8,825
Issuance costs and debt discounts	(78)
Net carrying value	$ 7,022	$ 8,725

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Pensions and Other Post-retirement Benefit Plans - Obligations and Funded Status (Details) - Foreign Plan - Pension Plan - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Projected benefit obligation at beginning of period	$ 359	$ 366	$ 352
Service cost	15	16	13
Interest cost	5	5	4
Plan amendments	9	0	0
Actuarial loss (gain)	(31)	(5)	3
Benefits paid	(9)	(11)	(8)
Settlement/curtailment	0	0	0
Non-U.S. currency movement	(54)	(12)	2
Projected benefit obligation at end of period	294	359	366
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of period	227	215	209
Actual return on plan assets	0	20	4
Employer contributions	10	11	9
Benefits paid	(7)	(11)	(8)
Non-U.S. currency movement	(41)	(8)	1
Fair value of plan assets at end of period	189	227	215
Unfunded status	$ 105	$ 132	$ 151

Pensions and Other Post-retirement Benefit Plans - Unfunded Amounts Recognized on Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021
Retirement Benefits [Abstract]
Current liabilities	$ 1	$ 1
Non-current liabilities	104	131
Net amount recognized	$ 105	$ 132

Pensions and Other Post-retirement Benefit Plans - Additional Information (Details) - USD ($)	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Defined Benefit Plan Disclosure [Line Items]
Actuarial pension gain (loss)	$ 24,000,000	$ 23,000,000	$ (5,000,000)
Pension Plan \| Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	294,000,000
Actuarial pension gain (loss)	13,000,000
Prior service credits for defined benefit pension plans included in accumulated other comprehensive income at the balance sheet date	$ 0
Defined benefit pension plan, estimated expenditure (years)	5 years
Pension Plan \| Debt Securities \| Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Target asset allocation for securities	55.00%
Pension Plan \| Equity securities \| Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Target asset allocation for securities	30.00%
Pension Plan \| Other Assets \| Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Target asset allocation for securities	15.00%

Pensions and Other Post-retirement Benefit Plans - Weighted-Average Actuarial Assumptions used to Determine Benefit Obligations (Details) - Foreign Plan	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.30%	1.40%	1.10%
Rate of compensation increase	2.30%	2.00%	2.00%

Pensions and Other Post-retirement Benefit Plans - Weighted-Average Actuarial Assumptions used to Determine Benefit Costs (Details) - Foreign Plan	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.40%	1.10%	1.10%
Expected long-term rate of return on plan assets	2.50%	2.50%	2.50%
Rate of compensation increase	2.00%	2.00%	1.70%

Pensions and Other Post-retirement Benefit Plans - Defined Benefit Pension Plans' Major Asset Categories and Their Associated Fair Values (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021
Level 1
Defined Benefit Plan Disclosure [Line Items]
Total investments at fair value	$ 0	$ 0
Level 2
Defined Benefit Plan Disclosure [Line Items]
Total investments at fair value	158	196
Level 3
Defined Benefit Plan Disclosure [Line Items]
Total investments at fair value	0	0
Net asset value
Defined Benefit Plan Disclosure [Line Items]
Total investments at fair value	189	226
Equity commingled/mutual funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	63	73
Equity commingled/mutual funds \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Equity commingled/mutual funds \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	63	73
Equity commingled/mutual funds \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Fixed income commingled/mutual funds
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	95	123
Fixed income commingled/mutual funds \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Fixed income commingled/mutual funds \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	95	123
Fixed income commingled/mutual funds \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Net plan assets subject to leveling
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	158	196
Net plan assets subject to leveling \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Net plan assets subject to leveling \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	158	196
Net plan assets subject to leveling \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	0	0
Real estate investment trust at net asset value \| Level 1
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets
Real estate investment trust at net asset value \| Level 2
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets
Real estate investment trust at net asset value \| Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets
Real estate investment trust at net asset value \| Net asset value
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, fair value of plan assets	$ 31	$ 30

Related Parties and Related Commitments and Contingencies - Additional Information (Details) $ in Millions	12 Months Ended
	Jul. 01, 2022 USD ($) entity	Jul. 02, 2021 USD ($)	Jul. 03, 2020 USD ($)
Related Party Transactions [Abstract]
Number of legal entities \| entity	3
Depreciation prepayments	$ 290
2023	268
2024	22
Accounts payable to related parties	320	$ 398
Undistributed earnings	$ 43	33
Investment funding commitments	50.00%
Costs incurred with unexpected power outage incident	$ 207		$ 68
Insurance recovery recorded in cost of revenue	$ 7	75
Western Digital Corp \| Minimum
Related Party Transactions [Abstract]
Investment funding commitments	49.90%
Western Digital Corp \| Maximum
Related Party Transactions [Abstract]
Investment funding commitments	50.00%
Equity Method Investee
Related Party Transactions [Abstract]
Payments for equity method investments	$ 4,700	4,360	$ 3,090
Accounts payable to related parties	$ 320	$ 398
Flash Ventures
Related Party Transactions [Abstract]
Equity method investment, ownership percentage	49.90%
Flash Ventures \| Prepayments of Future Depreciation
Related Party Transactions [Abstract]
Other commitment	$ 360
Flash Ventures \| Kioxia
Related Party Transactions [Abstract]
Equity method investment, ownership percentage	50.10%
Unis Venture
Related Party Transactions [Abstract]
Equity method investment, ownership percentage	49.00%
Unis Venture \| Revenue from Contract with Customer \| Product Concentration Risk
Related Party Transactions [Abstract]
Concentration risk, percentage	4.00%	3.00%	1.00%
Unis Venture \| Accounts Receivable Benchmark \| Product Concentration Risk
Related Party Transactions [Abstract]
Concentration risk, percentage		5.00%
Unis Venture \| Unissoft (Wuxi) Group Co Ltd.
Related Party Transactions [Abstract]
Partner's ownership in venture business	51.00%
Kioxia
Related Party Transactions [Abstract]
Equity method investment, ownership percentage	49.90%

Related Parties and Related Commitments and Contingencies - Equity Investments (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes receivable and investments in Flash Ventures	$ 1,396	$ 1,586
Flash Partners Ltd
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, related parties	27	191
Investments	166	199
Flash Alliance Ltd
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, related parties	55	213
Investments	243	293
Flash Forward Ltd
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, related parties	793	561
Investments	112	129
Equity Method Investee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes receivable and investments in Flash Ventures	$ 1,396	$ 1,586

Related Parties and Related Commitments and Contingencies - Maximum Loss Exposure (Details) - Jul. 01, 2022 - Equity Method Investee $ in Millions, ¥ in Billions	USD ($)	JPY (¥)
Guarantor Obligations [Line Items]
VIE, reporting entity involvement, maximum loss exposure, amount	$ 4,093
Notes receivable
Guarantor Obligations [Line Items]
VIE, reporting entity involvement, maximum loss exposure, amount	875
Equity investments
Guarantor Obligations [Line Items]
VIE, reporting entity involvement, maximum loss exposure, amount	521
Operating lease guarantees
Guarantor Obligations [Line Items]
Operating lease guarantees	1,760	¥ 238
Inventory and prepayments
Guarantor Obligations [Line Items]
Inventory and prepayments	$ 937

Related Parties and Related Commitments and Contingencies - JV Lease Guarantees (Details) - Jul. 01, 2022 $ in Millions, ¥ in Billions	USD ($)	JPY (¥)
Operating lease guarantees \| Equity Method Investee
Loss Contingencies [Line Items]
Total guarantee obligations	$ 1,760	¥ 238

Related Parties and Related Commitments and Contingencies - Joint Venture Lease Amounts (Details) - Equity Method Investee $ in Millions	Jul. 01, 2022 USD ($)
Guarantor Obligations [Line Items]
2023	$ 558
2024	464
2025	279
2026	307
2027 and thereafter	152
Total guarantee obligations	1,760
Payment of Principal Amortization
Guarantor Obligations [Line Items]
2023	505
2024	368
2025	191
2026	174
2027 and thereafter	39
Total guarantee obligations	1,277
Purchase Option Exercise Price at Final Lease Terms
Guarantor Obligations [Line Items]
2023	53
2024	96
2025	88
2026	133
2027 and thereafter	113
Total guarantee obligations	$ 483

Leases and Other Commitments - Supplemental Balance Sheet (Details) $ in Millions	Jul. 01, 2022 USD ($)
Leases [Abstract]
2023	$ 48
2024	48
2025	44
2026	43
2027	39
Thereafter	147
Total future minimum lease payments	369
Less: Imputed Interest	52
Present value of lease liabilities	$ 317
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses
Less: Current portion (included in Accrued expenses)	$ 40
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent
Long-term operating lease liabilities (included in Other liabilities )	$ 277
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other non-current assets
Operating lease right-of-use assets (included in Other non-current assets)	$ 300
Weighted average remaining lease term in years	8 years 3 months 18 days
Weighted average discount rate	3.40%

Leases and Other Commitments - Supplemental Cash Flow (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Leases [Abstract]
Cost of operating leases	$ 58	$ 50	$ 55
Cash paid for operating leases	51
Operating lease assets obtained in exchange for operating lease liabilities	$ 137

Leases and Other Commitments - Rent Expense, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Leases [Abstract]
Cost of operating leases	$ 58	$ 50	$ 55

Leases and Other Commitments - Long-Term Commitments (Details) $ in Millions	Jul. 01, 2022 USD ($)
Leases [Abstract]
2023	$ 572
2024	348
2025	180
2026	53
2027	46
Thereafter	150
Total	$ 1,349

Western Digital Corporation 401(k) Plan - Additional Information (Details) - USD ($) $ in Millions		12 Months Ended
	Jan. 01, 2022	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, employer matching contribution, percent of match		50.00%
Defined contribution plan, employer matching contribution, percent of employees' gross pay		6.00%
Defined contribution plan, employer discretionary contribution amount		$ 36	$ 34	$ 33
Pre-Tax
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, maximum annual contributions per employee, percent	85.00%	75.00%
Pre Tax and Post Tax
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, maximum annual contributions per employee, percent	10.00%	10.00%
Post-Tax
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, maximum annual contributions per employee, percent		10.00%
After Amendment
Defined Benefit Plan Disclosure [Line Items]
Company contributions vest period		2 years

Shareholders' Equity - 2021 Long Term Incentive Plan and ESPP (Details) $ in Millions	12 Months Ended
	Jul. 01, 2022 USD ($) entity shares	Jul. 02, 2021 USD ($) shares	Jul. 03, 2020 USD ($) shares	Nov. 30, 2021 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock plans \| $	$ 31	$ 78	$ 69
2021 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	10,800,000
Expiration period	10 years
RSUs and PSUs \| 2021 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)				9,500,000
Shares excluded from authorized shares (in shares)				1
RSUs and PSUs \| 2017 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares to be issued for every one share actually issued in connection with award (in shares)	1.72
Options \| 2021 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares to be issued for every one share actually issued in connection with award (in shares)	1
Employee Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percent of eligible compensation authorized	10.00%
Purchase price of common stock, percent	95.00%
Consecutive offering period	24 months
Number of exercise periods \| entity	4
Purchase period	6 months
Employee stock plans (in shares)	2,100,000	3,200,000	3,000,000
Employee stock plans \| $	$ 113	$ 115	$ 107
Minimum \| RSUs and PSUs \| 2021 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	2 years
Maximum \| RSUs and PSUs \| 2021 Long-Term Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	4 years

Shareholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	$ 326	$ 318	$ 308
Tax benefit	(48)	(47)	(45)
Total	278	271	263
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	48	55	51
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	167	158	163
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	111	105	94
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	0	0	7
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	286	282	268
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	$ 40	$ 36	$ 33

Shareholders' Equity - Unrecognized Share-based Compensation (Details) $ in Millions	12 Months Ended
	Jul. 01, 2022 USD ($)
Employee Service Share-based Compensation, Unrecognized Service Costs [Line Items]
Unamortized Compensation Costs	$ 618
RSUs and PSUs
Employee Service Share-based Compensation, Unrecognized Service Costs [Line Items]
Unamortized Compensation Costs	$ 557
Weighted Average Service Period	2 years 2 months 12 days
ESPP
Employee Service Share-based Compensation, Unrecognized Service Costs [Line Items]
Unamortized Compensation Costs	$ 61
Weighted Average Service Period	1 year 2 months 12 days

Shareholders' Equity - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Number of Shares
Options outstanding, beginning balance (in shares)	1,500,000	2,700,000	3,900,000
Exercised (in shares)	(200,000)	(400,000)	(800,000)
Canceled or expired (in shares)	(400,000)	(800,000)	(400,000)
Options outstanding, ending balance (in shares)	900,000	1,500,000	2,700,000
Weighted Average Exercise Price Per Share
Options outstanding, beginning balance, exercise price (in dollars per share)	$ 72.84	$ 69.16	$ 65.72
Exercised, exercise price (in dollars per share)	43.80	44.34	43.26
Canceled or expired, exercise price (in dollars per share)	97.65	75.42	88.58
Options outstanding, ending balance, exercise price (in dollars per share)	$ 66.76	$ 72.84	$ 69.16
Options outstanding, weighted average remaining contractual term	6 months 14 days
Aggregate Intrinsic Value
Exercised, intrinsic value	$ 3	$ 6	$ 12
Options granted (in shares)	0	0	0

Shareholders' Equity - Restricted Stock Units And Performance Share Units (Details) - Restricted Stock Units And Performance Share Units - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Number of Shares
Outstanding, beginning balance (in shares)	16.1	13.3	11.6
Granted (in shares)	6.9	8.8	7.4
Vested (in shares)	(5.2)	(4.5)	(4.4)
Forfeited (in shares)	(2.4)	(1.5)	(1.3)
Outstanding, ending balance (in shares)	15.4	16.1	13.3
Weighted Average Grant Date Fair Value
Outstanding, beginning balance, grant date fair value (in dollars per share)	$ 50.12	$ 60.92	$ 62.07
Granted, grant date fair value (in dollars per share)	60.00	40.40	55.32
Vested, grant date fair value (in dollars per share)	54.27	60.18	58.36
Forfeited, grant date fair value (in dollars per share)	52.14	55.74	63.33
Outstanding, ending balance, grant date fair value (in dollars per share)	$ 52.89	$ 50.12	$ 60.92
Aggregate value of restricted stock awards vested	$ 317	$ 196	$ 252

Shareholders' Equity - Fair Values Assumptions User For Employee Stock Purchase Plan Granted (Details) - ESPP - $ / shares	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average expected term (in years)	1 year 3 months	1 year 3 months	1 year 3 months
Risk-free interest rate	1.42%	0.10%	0.55%
Stock price volatility	48.00%	56.00%	59.00%
Dividend yield	0.00%	0.00%	1.08%
Fair value (in dollars per share)	$ 15.56	$ 21.59	$ 12.76

Shareholders' Equity - Stock Repurchase Program (Details) - USD ($)	12 Months Ended	21 Months Ended
	Jul. 01, 2022	Jun. 30, 2020
Equity, Class of Treasury Stock [Line Items]
Repurchases of common stock (in shares)	0
Stock Repurchase Program Effective Until July 25, 2023
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, number of shares authorized to be repurchased	$ 5,000,000,000
Repurchases of common stock (in shares)		0
Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, remaining authorized repurchase, amount	$ 4,500,000,000

Shareholders' Equity - Stock Reserved for Issuance (Details) shares in Millions	Jul. 01, 2022 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance	30
Outstanding awards and shares available for award grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance	26
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock reserved for issuance	4

Income Tax Expense - Domestic and Foreign Components of Income Before Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Income Tax Disclosure [Abstract]
Foreign	$ 1,384	$ 218	$ (695)
Domestic	739	709	649
Income (loss) before taxes	$ 2,123	$ 927	$ (46)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=126941158&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI https://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Tax Expense - Components of Provision for Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Current:
Foreign	$ 143	$ 195	$ 157
Domestic - Federal	341	154	124
Domestic - State	25	(1)	5
Current income tax expense (benefit)	509	348	286
Deferred:
Foreign	27	(20)	(29)
Domestic - Federal	84	(208)	(53)
Domestic - State	3	(14)	0
Deferred income tax expense (benefit)	114	(242)	(82)
Income tax expense (benefit)	$ 623	$ 106	$ 204

Income Tax Expense - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021
Deferred tax assets:
Sales related reserves and accrued expenses not currently deductible	$ 71	$ 88
Accrued compensation and benefits not currently deductible	114	143
Deferred revenue	0	128
Net operating loss carryforward	195	196
Business credit carryforward	483	461
Long-lived assets	72	101
Other	178	131
Total deferred tax assets	1,113	1,248
Deferred tax liabilities:
Long-lived assets	(128)	(202)
Unremitted earnings of certain non-U.S. entities	(288)	(280)
Other	(17)	(20)
Total deferred tax liabilities	(433)	(502)
Valuation allowances	(580)	(558)
Deferred tax assets, net	$ 100	$ 188

Income Tax Expense - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020	Jun. 28, 2019
Income Tax Disclosure [Line Items]
Valuation allowance, deferred tax asset, increase (decrease), amount	$ 22
Income tax holiday, aggregate amount	$ 566	$ 390	$ 464
Income tax benefits (in dollars in share)	$ 1.79	$ 1.26	$ 1.54
Effective tax rate	$ 903	$ 612	$ 583
Penalties and interest accrued on unrecognized tax benefits	254	138	137
Unrecognized tax benefits, including accrued interest and penalties	1,160	750	720
Federal tax related to adjustments for transfer pricing	1,600
Income taxes payable	1,047	$ 748	$ 717	$ 695
Minimum
Income Tax Disclosure [Line Items]
Penalties and interest accrued on unrecognized tax benefits	600
Income taxes payable	600
Income taxes payable	324
Mandatory deemed repatriation tax obligations	100
Maximum
Income Tax Disclosure [Line Items]
Penalties and interest accrued on unrecognized tax benefits	700
Income taxes payable	700
Mandatory deemed repatriation tax obligations	150
State and Local Jurisdiction
Income Tax Disclosure [Line Items]
Operating loss carryforward, valuation allowance	240
Tax credit carryforward, valuation allowance	2
Domestic Tax Authority
Income Tax Disclosure [Line Items]
Operating loss carryforward, valuation allowance	125
Tax credit carryforward, valuation allowance	27
Tax Years 2008 Through 2015
Income Tax Disclosure [Line Items]
Federal tax related to adjustments for transfer pricing	$ 449

Income Tax Expense - Reconciliation of the U.S. Federal statutory rate (Details)	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Income Tax Disclosure [Abstract]
U.S. Federal statutory rate	21.00%	21.00%	21.00%
Tax rate differential on international income	(9.00%)	8.00%	(443.00%)
Tax effect of U.S. foreign income inclusion	0.00%	5.00%	(38.00%)
Tax effect of U.S. foreign minimum tax	5.00%	1.00%	(235.00%)
Tax effect of U.S. foreign derived intangible income	(1.00%)	(14.00%)	109.00%
Tax effect of U.S. non-deductible stock-based compensation	1.00%	1.00%	(21.00%)
Tax effect of U.S. permanent differences	0.00%	1.00%	(26.00%)
IRS Tentative Settlement	15.00%	0.00%	0.00%
Change in valuation allowance	1.00%	(7.00%)	(12.00%)
Unremitted earnings of certain non-U.S. entities	1.00%	6.00%	(114.00%)
Foreign income tax credits	(3.00%)	(5.00%)	191.00%
R&D tax credits	(4.00%)	(8.00%)	147.00%
Other	2.00%	2.00%	(22.00%)
Effective tax rate	29.00%	11.00%	(443.00%)

Income Tax Expense - NOL Carryforward (Details) - USD ($) $ in Millions	Jul. 01, 2022	Jul. 02, 2021
Operating Loss Carryforwards [Line Items]
Tax credit carryforward	$ 483	$ 461
Malaysia
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	122
Belgium
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	106
Japan
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	84
Spain
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	46
Netherlands
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	12
Federal NOL (Pre 2017 Act Generation)
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	627
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	364
Tax credit carryforward	691
Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Tax credit carryforward	$ 57

Income Tax Expense - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefit, beginning balance	$ 748	$ 717	$ 695
Gross increases related to current year tax positions	12	21	11
Gross increases related to prior year tax positions	358	46	35
Gross decreases related to prior year tax positions	(65)	(20)	(4)
Settlements	(1)	(9)	(12)
Lapse of statute of limitations	(5)	(7)	(8)
Unrecognized tax benefit, ending balance	$ 1,047	$ 748	$ 717

Net Income (Loss) Per Common Share - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Earnings Per Share [Abstract]
Net income (loss)	$ 1,500	$ 821	$ (250)
Weighted average shares outstanding:
Basic (in shares)	312	305	298
Employee stock options, RSUs, PSUs, ESPP (in shares)	4	4	0
Diluted (in shares)	316	309	298
Income (loss) per common share
Basic (in dollars per share)	$ 4.81	$ 2.69	$ (0.84)
Diluted (in dollars per share)	$ 4.75	$ 2.66	$ (0.84)
Anti-dilutive potential common shares excluded (in shares)	3	5	15

Employee Termination, Asset Impairment and Other Charges - Expense Recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 50	$ 28	$ 49
Asset impairments and losses (gains) on disposal of assets	7	75	17
Total employee termination, asset impairment, and other charges	43	(47)	32
Closure of Foreign Manufacturing Facilities
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0	0	5
Business Realignment
Restructuring Cost and Reserve [Line Items]
Restructuring charges	50	28	44
Asset impairments and losses (gains) on disposal of assets	$ 7	$ 75	$ 17

Employee Termination, Asset Impairment and Other Charges - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Jul. 01, 2022	Jul. 02, 2021	Jul. 03, 2020
Restructuring Cost and Reserve [Line Items]
Gain (Loss) on Sale of Assets and Asset Impairment Charges	$ (7)	$ (75)	$ (17)
Business Realignment
Restructuring Cost and Reserve [Line Items]
Gain (Loss) on Sale of Assets and Asset Impairment Charges	$ (7)	$ (75)	$ (17)

Employee Termination, Asset Impairment and Other Charges - Business Realignment Activities (Details) - Employee Termination Benefits - Business Realignment $ in Millions	12 Months Ended
	Jul. 01, 2022 USD ($)
Restructuring Reserve [Roll Forward]
Accrual balance at July 2, 2021	$ 2
Charges	50
Cash payments	(35)
Accrual balance at July 1, 2022	$ 17