0000106040-23-000010 | 10-Q | XBRL Viewer

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Cover Page - shares	6 Months Ended
Cover Page - shares	Dec. 30, 2022	Jan. 25, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 30, 2022
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		319,322,335
Entity Central Index Key	0000106040
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 30, 2022	Jul. 01, 2022
Current assets:
Cash and cash equivalents	$ 1,871	$ 2,327
Accounts receivable, net	1,905	2,804
Inventories	3,773	3,638
Other current assets	832	684
Total current assets	8,381	9,453
Non-current assets:
Property, plant and equipment, net	3,688	3,670
Notes receivable and investments in Flash Ventures	1,357	1,396
Goodwill	10,041	10,041
Other intangible assets, net	135	213
Other non-current assets	1,445	1,486
Total assets	25,047	26,259
Current liabilities:
Accounts payable	1,193	1,902
Accounts payable to related parties	368	320
Accrued expenses	1,410	1,636
Income taxes payable	1,025	869
Accrued compensation	348	510
Current portion of long-term debt	38	0
Total current liabilities	4,382	5,237
Non-current liabilities:
Long-term debt	7,033	7,022
Other liabilities	1,517	1,779
Total liabilities	12,932	14,038
Commitments and contingencies (Notes 10, 11, 13 and 16)
Shareholders’ equity:
Common stock, $0.01 par value; authorized — 450 shares; issued — 319 shares and 315 shares, respectively; outstanding — 319 shares and 315 shares, respectively	3	3
Additional paid-in capital	3,770	3,733
Accumulated other comprehensive loss	(369)	(554)
Retained earnings	8,711	9,039
Total shareholders’ equity	12,115	12,221
Total liabilities and shareholders’ equity	$ 25,047	$ 26,259

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 30, 2022	Jul. 01, 2022
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	450,000,000	450,000,000
Common stock, shares issued (in shares)	319,000,000	315,000,000
Common stock, shares outstanding (in shares)	319,000,000	315,000,000

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021
Income Statement [Abstract]
Revenue, net	$ 3,107	$ 4,833	$ 6,843	$ 9,884
Cost of revenue	2,579	3,250	5,334	6,636
Gross profit	528	1,583	1,509	3,248
Operating expenses:
Research and development	523	575	1,075	1,153
Selling, general and administrative	250	279	497	570
Employee termination, asset impairment, and other charges	76	2	100	20
Total operating expenses	849	856	1,672	1,743
Operating income (loss)	(321)	727	(163)	1,505
Interest and other income (expense):
Interest income	3	1	5	3
Interest expense	(73)	(76)	(143)	(154)
Other income (expense), net	6	(6)	0	(4)
Total interest and other expense, net	(64)	(81)	(138)	(155)
Income (loss) before taxes	(385)	646	(301)	1,350
Income tax expense	61	82	118	176
Net income (loss)	$ (446)	$ 564	$ (419)	$ 1,174
Income (loss) per common share:
Basic (in dollars per share)	$ (1.40)	$ 1.81	$ (1.32)	$ 3.77
Diluted (in dollars per share)	$ (1.40)	$ 1.79	$ (1.32)	$ 3.73
Weighted average shares outstanding:
Basic (in shares)	318	312	317	311
Diluted (in shares)	318	315	317	315

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (446)	$ 564	$ (419)	$ 1,174
Other comprehensive income (loss), before tax:
Actuarial pension gain	0	0	0	1
Foreign currency translation adjustment	95	(45)	15	(41)
Net unrealized gain (loss) on derivative contracts and available-for-sale securities	288	(10)	212	23
Total other comprehensive income (loss), before tax	383	(55)	227	(17)
Income tax benefit (expense) related to items of other comprehensive income (loss), before tax	(58)	5	(42)	(3)
Other comprehensive income (loss), net of tax	325	(50)	185	(20)
Total comprehensive income (loss)	$ (121)	$ 514	$ (234)	$ 1,154

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021
Cash flows from operating activities
Net income (loss)	$ (419)	$ 1,174
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization	430	492
Stock-based compensation	172	163
Deferred income taxes	25	38
Loss on disposal of assets	1	1
Non-cash portion of asset impairment	15	0
Amortization of debt issuance costs and discounts	5	21
Other non-cash operating activities, net	69	13
Changes in:
Accounts receivable, net	899	(486)
Inventories	(135)	(30)
Accounts payable	(521)	96
Accounts payable to related parties	49	(9)
Accrued expenses	(226)	81
Income taxes payable	156	(34)
Accrued compensation	(162)	(66)
Other assets and liabilities, net	(317)	(267)
Net cash provided by operating activities	41	1,187
Cash flows from investing activities
Purchases of property, plant and equipment	(578)	(551)
Proceeds from the sale of property, plant and equipment	0	12
Proceeds from dispositions of business	7	0
Notes receivable issuances to Flash Ventures	(235)	(337)
Notes receivable proceeds from Flash Ventures	317	320
Strategic investments and other, net	7	(13)
Net cash used in investing activities	(482)	(569)
Cash flows from financing activities
Issuance of stock under employee stock plans	48	60
Taxes paid on vested stock awards under employee stock plans	(55)	(80)
Repayment of debt	0	(2,425)
Proceeds from debt	0	998
Repayments of revolving credit facility	(1,180)	0
Proceeds from revolving credit facility	1,180	0
Debt issuance costs	(5)	(9)
Net cash used in financing activities	(12)	(1,456)
Effect of exchange rate changes on cash	(3)	(1)
Net decrease in cash and cash equivalents	(456)	(839)
Cash and cash equivalents, beginning of year	2,327	3,370
Cash and cash equivalents, end of period	1,871	2,531
Supplemental disclosure of cash flow information:
Cash paid for income taxes	192	312
Cash paid for interest	$ 138	$ 129

CONDENSED 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	Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Loss	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment
Common stock, beginning balance (in shares) at Jul. 02, 2021			312
Beginning balance at Jul. 02, 2021	$ 10,721		$ 3	$ (232)	$ 3,608		$ (197)	$ 7,539
Treasury stock, beginning balance (in shares) at Jul. 02, 2021				(4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	610							610
Employee stock plans (in shares)				3
Employee stock plans	(76)			$ 207	(283)
Stock-based compensation	76				76
Actuarial pension gain	1						1
Foreign currency translation adjustment	4						4
Net unrealized gain (loss) on derivative contracts	25						25
Common stock, ending balance (in shares) at Oct. 01, 2021			312
Ending balance at Oct. 01, 2021	11,361		$ 3	$ (25)	3,401		(167)	8,149
Treasury stock, ending balance (in shares) at Oct. 01, 2021				(1)
Common stock, beginning balance (in shares) at Jul. 02, 2021			312
Beginning balance at Jul. 02, 2021	10,721		$ 3	$ (232)	3,608		(197)	7,539
Treasury stock, beginning balance (in shares) at Jul. 02, 2021				(4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	1,174
Common stock, ending balance (in shares) at Dec. 31, 2021			313
Ending balance at Dec. 31, 2021	12,018		$ 3	$ 0	3,519		(217)	8,713
Treasury stock, ending balance (in shares) at Dec. 31, 2021				0
Common stock, beginning balance (in shares) at Oct. 01, 2021			312
Beginning balance at Oct. 01, 2021	11,361		$ 3	$ (25)	3,401		(167)	8,149
Treasury stock, beginning balance (in shares) at Oct. 01, 2021				(1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	564							564
Employee stock plans (in shares)			1	1
Employee stock plans	56			$ 25	31
Stock-based compensation	87				87
Foreign currency translation adjustment	(45)						(45)
Net unrealized gain (loss) on derivative contracts	(5)						(5)
Common stock, ending balance (in shares) at Dec. 31, 2021			313
Ending balance at Dec. 31, 2021	$ 12,018		$ 3	$ 0	3,519		(217)	8,713
Treasury stock, ending balance (in shares) at Dec. 31, 2021				0
Common stock, beginning balance (in shares) at Jul. 01, 2022	315		315
Beginning balance at Jul. 01, 2022	$ 12,221	$ (37)	$ 3	$ 0	3,733	$ (128)	(554)	9,039	$ 91
Treasury stock, beginning balance (in shares) at Jul. 01, 2022				0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	27							27
Employee stock plans (in shares)			3
Employee stock plans	(50)				(50)
Stock-based compensation	86				86
Foreign currency translation adjustment	(80)						(80)
Net unrealized gain (loss) on derivative contracts	(60)						(60)
Common stock, ending balance (in shares) at Sep. 30, 2022			318
Ending balance at Sep. 30, 2022	$ 12,107		$ 3	$ 0	3,641		(694)	9,157
Treasury stock, ending balance (in shares) at Sep. 30, 2022				0
Common stock, beginning balance (in shares) at Jul. 01, 2022	315		315
Beginning balance at Jul. 01, 2022	$ 12,221	$ (37)	$ 3	$ 0	3,733	$ (128)	(554)	9,039	$ 91
Treasury stock, beginning balance (in shares) at Jul. 01, 2022				0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ (419)
Common stock, ending balance (in shares) at Dec. 30, 2022	319		319
Ending balance at Dec. 30, 2022	$ 12,115		$ 3	$ 0	3,770		(369)	8,711
Treasury stock, ending balance (in shares) at Dec. 30, 2022				0
Common stock, beginning balance (in shares) at Sep. 30, 2022			318
Beginning balance at Sep. 30, 2022	12,107		$ 3	$ 0	3,641		(694)	9,157
Treasury stock, beginning balance (in shares) at Sep. 30, 2022				0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(446)							(446)
Employee stock plans (in shares)			1
Employee stock plans	43				43
Stock-based compensation	86				86
Foreign currency translation adjustment	97						97
Net unrealized gain (loss) on derivative contracts	$ 228						228
Common stock, ending balance (in shares) at Dec. 30, 2022	319		319
Ending balance at Dec. 30, 2022	$ 12,115		$ 3	$ 0	$ 3,770		$ (369)	$ 8,711
Treasury stock, ending balance (in shares) at Dec. 30, 2022				0

Organization and Basis of Presentation	6 Months Ended
Organization and Basis of Presentation	Dec. 30, 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 based on both flash-based products (“Flash”) and hard disk drives (“HDD”) technologies. With dedicated Flash and HDD business units driving advancements in memory technologies, the Company creates and drives innovations needed to help customers capture, preserve, access, and transform an ever-increasing diversity of data. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 1, Organization and Basis of Presentation, of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10‑K for the year ended July 1, 2022. In the opinion of management, all adjustments necessary to fairly state the Condensed Consolidated Financial Statements have been made. All such adjustments are of a normal, recurring nature. Certain information and footnote disclosures normally included in the Consolidated Financial Statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10‑K for the year ended July 1, 2022. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year. 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, the Company reports a 53-week fiscal year to align the fiscal year with the foregoing policy. Fiscal years 2023, which ends on June 30, 2023, and 2022, which ended on July 1, 2022, are each comprised of 52 weeks, with all quarters presented consisting of 13 weeks. 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. The Company manages and reports under two reportable segments: Flash and HDD. The Company’s Chief Operating Decision Maker (“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 not available or reviewed by the CODM to evaluate the performance of or to allocate resources to the segments. 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 current macroeconomic conditions. However, actual results could differ materially from these estimates.

Recent Accounting Pronouncements	6 Months Ended
Recent Accounting Pronouncements	Dec. 30, 2022
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 prior 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 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. The Company adopted this ASU on July 2, 2022, the first day of the year ending June 30, 2023, and the adoption did not have a material impact on its Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In September 2022, the FASB issued ASU No. 2022-04, “Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations”. This guidance requires annual and interim disclosures for entities that use supplier finance programs in connection with the purchase of goods and services. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company is currently evaluating the extent of the impact of this ASU on its Condensed Consolidated Financial Statements.

- 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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Reference 27: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Business Segments, Geographic Information, and Concentrations of Risk

6 Months Ended

Dec. 30, 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:


	Three Months Ended						Six Months Ended
	December 30, 2022			December 31, 2021			December 30, 2022			December 31, 2021
	$ in millions
Net revenue:
Flash	$	1,657		$	2,620		$	3,379		$	5,110
HDD	1,450			2,213			3,464			4,774
Total net revenue	$	3,107		$	4,833		$	6,843		$	9,884
Gross profit:
Flash	$	240		$	946		$	662		$	1,867
HDD	300			677			874			1,469
Total gross profit for segments	540			1,623			1,536			3,336
Unallocated corporate items:

Stock-based compensation expense	(12)			(14)			(26)			(23)
Amortization of acquired intangible assets	—			(26)			(1)			(65)



Total unallocated corporate items	(12)			(40)			(27)			(88)
Consolidated gross profit	$	528		$	1,583		$	1,509		$	3,248
Gross margin:
Flash	14.5		%	36.1		%	19.6		%	36.5		%
HDD	20.7		%	30.6		%	25.2		%	30.8		%
Consolidated gross margin	17.0		%	32.8		%	22.1		%	32.9		%

Disaggregated Revenue

The Company’s broad portfolio of technology and products address multiple end markets. Cloud represents a large and growing end market comprised primarily of products for public or private cloud environments and end 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 original equipment manufacturer (“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:



	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)





Revenue by End Market
Cloud	$	1,224	$	1,920	$	3,053	$	4,145
Client	1,089		1,854		2,318		3,707
Consumer	794		1,059		1,472		2,032
Total Revenue	$	3,107	$	4,833	$	6,843	$	9,884

Revenue by Geography
Asia	$	1,494	$	2,610	$	3,180	$	5,285
Americas	1,090		1,407		2,513		3,021
Europe, Middle East and Africa	523		816		1,150		1,578
Total Revenue	$	3,107	$	4,833	$	6,843	$	9,884

The Company’s top 10 customers accounted for 47% and 48% of its net revenue for the three and six months ended December 30, 2022, respectively, and 46% and 44% of its net revenue for the three and six months ended December 31, 2021, respectively. For the three and six months ended December 30, 2022 and December 31, 2021, no single customer accounted for 10% or more of the Company’s net revenue.

Goodwill

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


	Flash		HDD		Total
	(in millions)
Balance at July 1, 2022	$	5,718	$	4,323	$	10,041

Foreign currency translation adjustment	—		—		—

Balance at December 30, 2022	$	5,718	$	4,323	$	10,041

Goodwill is not amortized. Instead, it is tested for impairment annually as of the beginning of the Company’s fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. 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.

As of December 30, 2022, management identified several continuing factors, including changes in macroeconomic conditions and recent declines of the Company’s market stock price, that warranted quantitative analyses of impairments for both the Flash and HDD reporting units as of such date. The fair value of each operating segment was based on a weighting of two valuation methodologies: an income approach and a market approach.

The income approach was based on the present value of the projected discounted cash flows (“DCF”) expected to be generated by the operating segment. Those projections required the use of significant estimates and assumptions specific to the reporting unit as well as those based on general economic conditions, which included, among other factors, revenue growth rates, gross margins, operating costs, capital expenditures, assumed tax rates and other assumptions deemed reasonable by management. The present value was based on applying a weighted average cost of capital (“WACC”) which considered long-term interest rates and cost of equity based on the Company’s risk profile.

The market approach was based on a guideline company method, which analyzed market multiples of revenue and earnings before interest, taxes, depreciation and amortization (“EBITDA”) for a group of comparable public companies.

The Company reconciled the aggregated estimated fair value of both operating segments to the Company’s market capitalization, including consideration of a control premium representing the estimated amount a market participant would pay to obtain a controlling interest in the Company.

As of December 30, 2022, the fair value derived from those valuation methodologies exceeded the carrying value by 9% and 28% for Flash and HDD, respectively. There were no impairment charges recorded for the three and six months ended December 30, 2022.

The Company is required to use judgment when applying the goodwill impairment test, including the assignment of assets and liabilities 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 as well as their actual carrying value may change based on future changes in the Company’s 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. In addition, if negative macroeconomic conditions continue or worsen or the Company’s stock price decreases further for a sustained period of time, goodwill could become impaired, which could result in an impairment charge and materially adversely affect the Company’s financial condition results of operations.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-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 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 34
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI https://asc.fasb.org/topic&trid=2134510

+ Details

Revenues	6 Months Ended
Revenues	Dec. 30, 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 December 30, 2022 or July 1, 2022. 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 December 30, 2022 and July 1, 2022 and changes in contract liabilities for the six months ended December 30, 2022 and December 31, 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 intellectual property (“IP”) license arrangements, which typically have a duration of 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 December 30, 2022 was $17 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: $14 million during the remainder of 2023, and $3 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
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Supplemental Financial Statement Data

6 Months Ended

Dec. 30, 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. During the six months ended December 30, 2022, the Company sold trade accounts receivable aggregating $391 million. The Company did not sell any trade accounts receivable during the six months ended December 31, 2021. The discounts on the trade accounts receivable sold were not material and were recorded within Other income (expense), net in the Condensed Consolidated Statements of Operations. As of December 30, 2022 and July 1, 2022, the amount of factored receivables that remained outstanding was $100 million and $300 million, respectively.

Inventories


	December 30, 2022		July 1, 2022
	(in millions)
Inventories:
Raw materials and component parts	$	1,968	$	1,603
Work-in-process	966		1,162
Finished goods	839		873
Total inventories	$	3,773	$	3,638

Property, plant and equipment, net


	December 30, 2022		July 1, 2022
	(in millions)
Property, plant and equipment:
Land	$	269	$	269
Buildings and improvements	1,953		1,920
Machinery and equipment	8,692		8,642
Computer equipment and software	506		494
Furniture and fixtures	54		54
Construction-in-process	690		591
Property, plant and equipment, gross	12,164		11,970
Accumulated depreciation	(8,476)		(8,300)
Property, plant and equipment, net	$	3,688	$	3,670

Other Intangible assets, net


	December 30, 2022		July 1, 2022
	(in millions)
Other Intangible assets:
Finite-lived intangible assets	$	5,492	$	5,493
In-process research and development	80		80
Accumulated amortization	(5,437)		(5,360)
Other Intangible assets, net	$	135	$	213

As part of prior acquisitions, the Company recorded at the time of the acquisition acquired in-process research and development (“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.

Product warranty liability

Changes in the warranty accrual were as follows:


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)
Warranty accrual, beginning of period	$	340	$	370	$	345	$	363

Charges to operations	25		36		57		76
Utilization	(60)		(28)		(94)		(51)
Changes in estimate related to pre-existing warranties	(16)		(27)		(19)		(37)
Warranty accrual, end of period	$	289	$	351	$	289	$	351

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:


	December 30, 2022		July 1, 2022
	(in millions)
Warranty accrual:
Current portion (included in Accrued expenses)	$	131	$	162
Long-term portion (included in Other liabilities)	158		183
Total warranty accrual	$	289	$	345

Other liabilities


	December 30, 2022		July 1, 2022
	(in millions)
Other liabilities:
Non-current net tax payable	$	458	$	659
Non-current portion of unrecognized tax benefits	452		477
Other non-current liabilities	607		643
Total other liabilities	$	1,517	$	1,779

Accumulated other comprehensive loss

Accumulated other comprehensive 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 Losses		Foreign Currency Translation Adjustment		Unrealized Losses on Derivative Contracts		Total Accumulated Comprehensive Loss
	(in millions)















Balance at July 1, 2022	$	(11)	$	(277)	$	(266)	$	(554)
Other comprehensive income before reclassifications	—		15		35		50
Amounts reclassified from accumulated other comprehensive loss	—		—		177		177
Income tax benefit related to items of other comprehensive loss	—		2		(44)		(42)
Net current-period other comprehensive income	—		17		168		185
Balance at December 30, 2022	$	(11)	$	(260)	$	(98)	$	(369)

During the three and six months ended December 30, 2022, the amounts reclassified out of AOCI were losses related to foreign exchange contracts and gains related to interest rate swap contracts. Losses reclassified out of AOCI related to foreign exchange contracts were $119 million and $181 million for the three and six months ended December 30, 2022, respectively, that were substantially charged to Cost of revenue in the Condensed Consolidated Statements of Operations. Gains reclassified out of AOCI related to interest rate swap contracts were $6 million and $4 million for the three and six months ended December 30, 2022, respectively, that were charged to Interest expense in the Condensed Consolidated Statements of Operations.

As of December 30, 2022, substantially all existing net losses related to cash flow hedges recorded in AOCI are expected to be reclassified to earnings within the next twelve months. In addition, as of December 30, 2022, the Company did not have any foreign exchange forward contracts with credit-risk-related contingent features.

Fair Value Measurements and Investments

6 Months Ended

Dec. 30, 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 December 30, 2022 and July 1, 2022, and indicate the fair value hierarchy of the valuation techniques utilized to determine such values:


	December 30, 2022
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:

Cash equivalents - Money market funds	$	435	$	—	$	—	$	435


















Foreign exchange contracts	—		105		—		105
Interest rate swap contracts	—		6		—		6

Total assets at fair value	$	435	$	111	$	—	$	546
Liabilities:
Foreign exchange contracts	$	—	$	97	$	—	$	97


Total liabilities at fair value	$	—	$	97	$	—	$	97


	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

During the periods presented, the Company had no transfers of financial assets and liabilities between levels and there were no changes in valuation techniques or 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 second quarter of 2023 and the fourth quarter of 2022, respectively.


	December 30, 2022				July 1, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)







1.50% convertible notes due 2024	$	1,097	$	1,052	$	1,048	$	1,040

4.75% senior unsecured notes due 2026	2,292		2,169		2,291		2,205
Variable interest rate Term Loan A-2 maturing 2027	2,691		2,661		2,693		2,621
2.85% senior unsecured notes due 2029	496		388		495		412
3.10% senior unsecured notes due 2032	495		361		495		389




Total	$	7,071	$	6,631	$	7,022	$	6,667

- 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

Derivative Instruments and Hedging Activities	6 Months Ended
Derivative Instruments and Hedging Activities	Dec. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	Derivative Instruments and Hedging Activities As of December 30, 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 through February 2023, on a portion of its term loans. Changes in fair values of the non-designated foreign exchange contracts are recognized in Other income (expense), net and are largely offset by corresponding changes in the fair values of the foreign currency denominated monetary assets and liabilities. For each of the three and six months ended December 30, 2022 and December 31, 2021, total net realized and unrealized transaction and foreign exchange contract currency gains and losses were not material to the Company’s Condensed Consolidated Financial Statements. Unrealized gains or losses on designated cash flow hedges are recognized in AOCI. For more information regarding cash flow hedges, see Note 5, Supplemental Financial Statement Data - Accumulated other comprehensive loss. 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 December 30, 2022 and July 1, 2022, 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 Condensed Consolidated Balance Sheets.

Debt

6 Months Ended

Dec. 30, 2022

Debt Disclosure [Abstract]

Debt

Debt consisted of the following:


	December 30, 2022		July 1, 2022
	(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		2,700
2.85% senior unsecured notes due 2029	500		500
3.10% senior unsecured notes due 2032	500		500

Total debt	7,100		7,100
Issuance costs and debt discounts	(29)		(78)
Subtotal	7,071		7,022
Less current portion of long-term debt	(38)		—
Long-term debt	$	7,033	$	7,022

During the six months ended December 30, 2022, the Company drew and repaid $1.18 billion principal amount under its $2.25 billion revolving credit facility maturing in January 2027 (the “2027 Revolving Credit Facility”).

In December 2022, the Company amended the credit agreement governing the 2027 Revolving Credit Facility and Term Loan A-2 for the purposes of providing flexibility by adjusting the leverage ratio requirements of the financial covenant thereunder through the Company’s quarter ending September 27, 2024 (such period, the “Covenant Relief Period”). As amended, the Company is required to maintain a maximum ratio (“Leverage Ratio”) of total funded debt to trailing twelve-month Consolidated Adjusted EBITDA (as defined in the Credit Agreement) at the end of each quarter as follows:


Quarter ending:			Leverage ratio
December 30, 2022			3.25 to 1.00
March 31, 2023			3.75 to 1.00
June 30, 2023			4.75 to 1.00
September 29, 2023			5.00 to 1.00
December 29, 2023			4.75 to 1.00
March 29, 2024			4.50 to 1.00
June 28, 2024			4.25 to 1.00
September 27, 2024			3.75 to 1.00
December 27, 2024 and thereafter			3.25 to 1.00

As of December 30, 2022, the Company was in compliance with this financial covenant. The amendment also provides that the due date for amounts outstanding under the Credit Agreement will be accelerated from January 7, 2027 to November 2, 2023 if, as of that date, the Company does not have Cash and cash equivalents plus available unused capacity under its credit facilities that exceed by $1 billion the sum of the outstanding balance of the 1.50% convertible notes due 2024 plus the outstanding principal amount of any other debt maturing within 12 months. In addition, during the Covenant Relief Period, the amendment requires certain subsidiaries of the Company to provide guarantees if the corporate family ratings of the Company from at least two of Standard & Poor’s Ratings Services, Moody’s Investors Service, Inc. and Fitch, Inc. (the “Credit Rating Agencies”) drops below investment grade and includes limits on secured indebtedness and certain types of unsecured subsidiary indebtedness.

In January 2023, the Company entered into a loan agreement (the “Delayed Draw Term Loan Agreement”), which allows the Company to draw a single unsecured loan of up to $875 million (the “Delayed Draw Term Loan”) through June 30, 2023. The Delayed Draw Term Loan Agreement may be terminated, at the election of the Company, at any time without premium or penalty, subject to certain conditions.

Any amount drawn under the Delayed Draw Term Loan Agreement will mature 364 days following the date of the initial draw. However, the due date will be accelerated to November 2, 2023 if conditions for acceleration of amounts due under the Credit Agreement have been triggered as described above.

The Delayed Draw Term Loan will bear interest, at the Company’s option, at a per annum rate equal to either (x) the Adjusted Term SOFR Rate (as defined in the Delayed Draw Term Loan Agreement) plus an applicable margin varying from 1.750% to 2.625% or (y) a base rate plus an applicable margin varying from 0.750% to 1.625%, in each case depending on the corporate family ratings of the Company from at least two of the Credit Rating Agencies. The Company will also pay an unused commitment fee on the Delayed Draw Term Loan Agreement of 0.200%.

The key covenants, limitations and requirements provided under Credit Agreement amendment noted above also apply to the Delayed Draw Term Loan Agreement.

As described in Note 2, Recent Accounting Pronouncements, the Company adopted ASU 2020-06 effective July 2, 2022, using a modified retrospective method, which resulted in the elimination of the originally recorded debt discount associated with the conversion feature on its 1.50% convertible notes due 2024.

- 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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Name Accounting Standards Codification
-Topic 470
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-Paragraph 1B
-Subparagraph (h)
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-Paragraph 1
-Subparagraph (SX 210.4-08(c))
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+ Details

Pension and Other Post-Retirement Benefit Plans

6 Months Ended

Dec. 30, 2022

Retirement Benefits [Abstract]

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 Condensed Consolidated Financial Statements. The expected long-term rate of return on the Pension Plans assets is 2.5%.

Obligations and Funded Status

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


	December 30, 2022		July 1, 2022
	(in millions)











Benefit obligation at end of period	$	302	$	294









Fair value of plan assets at end of period	195		189
Unfunded status	$	107	$	105

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


	December 30, 2022		July 1, 2022
	(in millions)
Current liabilities	$	1	$	1
Non-current liabilities	106		104
Net amount recognized	$	107	$	105

Net periodic benefit costs were not material for the three and six months ended December 30, 2022.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
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-SubTopic 20
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+ Details

Related Parties and Related Commitments and Contingencies

6 Months Ended

Dec. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Flash Ventures

The Company’s business ventures with Kioxia Corporation (“Kioxia”) consist 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 following table presents the notes receivable from, and equity investments in, Flash Ventures:


	December 30, 2022		July 1, 2022
	(in millions)
Notes receivable, Flash Partners	$	12	$	27
Notes receivable, Flash Alliance	66		55
Notes receivable, Flash Forward	737		793
Investment in Flash Partners	174		166
Investment in Flash Alliance	251		243
Investment in Flash Forward	117		112
Total notes receivable and investments in Flash Ventures	$	1,357	$	1,396

During the three and six months ended December 30, 2022 and December 31, 2021, the Company made net payments to Flash Ventures of $1.0 billion and $2.0 billion, and $1.1 billion and $2.3 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 December 30, 2022 and July 1, 2022, the Company had accounts payable balances due to Flash Ventures of $368 million and $320 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 December 30, 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.


	December 30, 2022
	(in millions)
Notes receivable	$	815
Equity investments	542
Operating lease guarantees	1,895
Inventory and prepayments	1,128
Maximum estimable loss exposure	$	4,380

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 each Flash Ventures entity’s operating cash flow is insufficient to fund these investments.

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 $147 million as follows: $124 million for the remaining six months of 2023 and $23 million in 2024, to be credited against future wafer charges.

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 research and development (“R&D”) activities with Kioxia and is contractually committed to a minimum funding level. R&D commitments are immaterial to the Condensed 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 December 30, 2022.


	Lease Amounts
	(Japanese yen, in billions)		(U.S. dollar, in millions)
Total guarantee obligations	¥	250	$	1,895

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 December 30, 2022 in U.S. dollars, based upon the Japanese yen to U.S. dollar exchange rate as of December 30, 2022:


Annual Installments	Payment of Principal Amortization		Purchase Option Exercise Price at Final Lease Terms		Guarantee Amount
	(in millions)
Remaining six months of 2023	$	285	$	55	$	340
2024	450		99		549
2025	250		90		340
2026	261		136		397
2027	81		116		197
2028 and thereafter	12		60		72
Total guarantee obligations	$	1,339	$	556	$	1,895

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 December 30, 2022, no amounts have been accrued in the Condensed 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 both the three and six months ended December 30, 2022, the Company recognized approximately 3% of its consolidated revenue on products distributed by the Unis Venture. For both the three and six months ended December 31, 2021, the Company recognized approximately 4% of its consolidated revenue on products distributed by the Unis Venture. The outstanding accounts receivable due from the Unis Venture were 7% and 5% of Accounts receivable, net as of December 30, 2022 and July 1, 2022, respectively.

Leases and Other Commitments

6 Months Ended

Dec. 30, 2022

Leases [Abstract]

Leases and Other Commitments

Leases

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 those options. Lease expense is recognized on a straight-line basis over the lease term. The following table summarizes supplemental balance sheet information related to operating leases as of December 30, 2022:


	Lease Amounts
	($ in millions)
Minimum lease payments by year:
Remaining six months of 2023	$	24
2024	47
2025	44
2026	43
2027	39
Thereafter	147
Total future minimum lease payments	344
Less: Imputed interest	54
Present value of lease liabilities	290
Less: Current portion (included in Accrued expenses)	39
Long-term operating lease liabilities (included in Other liabilities )	$	251

Operating lease right-of-use assets (included in Other non-current assets)	$	271

Weighted average remaining lease term in years	8.1
Weighted average discount rate	4.1		%

The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases:


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)
Cost of operating leases	$	14	$	14	$	28	$	27
Cash paid for operating leases	12		12		26		24
Operating lease assets obtained in exchange for operating lease liabilities	—		11		4		123

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 December 30, 2022, the Company had the following minimum long-term commitments:


	Long-Term Commitments
	(in millions)
Year:
Remaining six months of 2023	$	193
2024	256
2025	180
2026	53
2027	46
Thereafter	150
Total	$	878

Shareholders' Equity

6 Months Ended

Dec. 30, 2022

Share-Based Payment Arrangement [Abstract]

Shareholders' Equity

Shareholders’ Equity

Stock-based Compensation Expense

The following tables present the Company’s stock-based compensation for equity-settled awards by type (i.e., restricted stock units (“RSUs”), restricted stock unit awards with performance conditions or market conditions (“PSUs”), and rights to purchase shares of common stock under the Company’s Employee Stock Purchase Plan (“ESPP”)) and financial statement line as well as the related tax benefit included in the Company’s Condensed Consolidated Statements of Operations:


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)

RSUs and PSUs	$	79	$	78	$	154	$	145
ESPP	7		9		18		18
Total	$	86	$	87	$	172	$	163


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)
Cost of revenue	$	12	$	14	$	26	$	23
Research and development	40		43		79		83
Selling, general and administrative	34		30		67		57

Subtotal	86		87		172		163
Tax benefit	(11)		(13)		(24)		(28)
Total	$	75	$	74	$	148	$	135

Windfall tax benefits and tax deficiencies for shortfalls 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 December 30, 2022:


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

RSUs and PSUs (1)	$	571	2.4
ESPP	89		1.9
Total unamortized compensation cost	$	660

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

Plan Activities

Stock Options

The following table summarizes stock option activity under the Company’s incentive plans. All outstanding options were exercisable at December 30, 2022:


	Number of Shares	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life
	(in millions)			(in years)

























Options outstanding at July 1, 2022	0.9	$	66.76	0.54



Canceled or expired	(0.5)	83.50
Options outstanding at December 30, 2022	0.4	$	44.63	0.57

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 July 1, 2022	15.4	$	52.89
Granted	4.7	43.34

Vested	(4.7)	53.76		$	200
Forfeited	(0.9)	58.54
RSUs and PSUs outstanding at December 30, 2022	14.5	$	49.18

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.

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. The Company did not make any stock repurchases during the six months ended December 30, 2022 and has not repurchased any shares of its common stock pursuant to its stock repurchase program since the first quarter of fiscal 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 December 30, 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.

Income Tax Expense

6 Months Ended

Dec. 30, 2022

Income Tax Disclosure [Abstract]

Income Tax Expense

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 fiscal 2019. However, the U.S. Treasury and the Internal Revenue Service (“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 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% on corporations with three-year average annual adjusted financial statement income exceeding $1 billion. 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.

The following table presents the Company’s Income tax expense and the effective tax rate:


	Three Months Ended						Six Months Ended
	December 30, 2022			December 31, 2021			December 30, 2022			December 31, 2021
	($ in millions)
Income (loss) before taxes	$	(385)		$	646		$	(301)		$	1,350
Income tax expense	61			82			118			176
Effective tax rate	(16)		%	13		%	(39)		%	13		%

Beginning in fiscal year 2023, the 2017 Act requires the Company to capitalize and amortize R&D expenses rather than expensing them in the year incurred. The tax effects related to the capitalization of R&D expenses are included in the effective tax rate for the three and six months ended December 30, 2022 but did not have a material impact on the effective tax rate. The primary drivers of the difference between the effective tax rate for the three and six months ended December 30, 2022 and the U.S. Federal statutory rate of 21% are the relative mix of earnings and losses by jurisdiction, the deduction for foreign derived intangible income, credits, and tax holidays in Malaysia, the Philippines and Thailand that will expire at various dates during fiscal years 2024 through 2031.

The primary drivers of the difference between the effective tax rate for the three and six months ended December 31, 2021 and the U.S. Federal statutory rate of 21% are the relative mix of earnings and losses by jurisdiction, the deduction for foreign derived intangible income, credits, and tax holidays in Malaysia, the Philippines and Thailand that will expire at various dates during fiscal years 2024 through 2031. In addition, the effective tax rate for the three and six months ended December 31, 2021 included the discrete effect of an increase to unrecognized tax benefits of $8 million and $25 million, respectively, as a result of ongoing discussions with various taxing authorities.

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 Condensed Consolidated Balance Sheets.

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits excluding accrued interest and penalties for the three months ended December 30, 2022 (in millions):


Accrual balance at July 1, 2022	$	1,047
Gross increases related to current year tax positions	4
Gross increases related to prior year tax positions	11
Gross decreases related to prior year tax positions	(12)
Settlements	(5)
Lapse of statute of limitations	(3)
Accrual balance at December 30, 2022	$	1,042

As of December 30, 2022, the liability for unrecognized tax benefits (excluding accrued interest and penalties) was $1.04 billion. 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 December 30, 2022 was $279 million. Of these amounts, approximately $1.18 billion could result in potential cash payments.

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. Based on the tentative settlement for resolution, the Company expects to pay tax and interest totaling approximately $720 million to $760 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 million 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 has classified that portion of these unrecognized tax benefits, including interest in Income taxes payable on its Condensed Consolidated Balance Sheets as of December 30, 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. Any significant change in the amount of the Company’s liability for unrecognized tax benefits would most likely result from additional information or settlements relating to the examination of the Company’s tax returns.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/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
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1
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-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Net Income (Loss) Per Common Share

6 Months Ended

Dec. 30, 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:


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021			December 30, 2022		December 31, 2021
	(in millions, except per share data)
Net income (loss)	$	(446)	$	564		$	(419)	$	1,174
Weighted average shares outstanding:
Basic	318		312			317		311
Employee stock options, RSUs, PSUs, and ESPP	—		3			—		4
Basic and diluted	318		315			317		315
Income (loss) per common share
Basic	$	(1.40)	$	1.81		$	(1.32)	$	3.77
Diluted	$	(1.40)	$	1.79		$	(1.32)	$	3.73
Anti-dilutive potential common shares excluded	15		5			15		3

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 the three and six months ended and December 31, 2021, the Company excluded common shares subject to certain 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 the three and six months ended December 30, 2022, the Company recorded a net loss and all shares subject to outstanding equity awards were excluded from the calculation of diluted shares for those periods because their impact would have been anti-dilutive.

Employee Termination, Asset Impairment, and Other Charges

6 Months Ended

Dec. 30, 2022

Postemployment Benefits [Abstract]

Employee Termination, Asset Impairment, and Other Charges

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 recorded the following charges related to these actions:


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)




Employee termination benefits	$	61	$	3	$	85	$	18









Asset impairments and losses on disposal of assets	15		(1)		15		2




Total employee termination, asset impairment, and other charges	$	76	$	2	$	100	$	20

The following table presents an analysis of the components of these activities against the reserve during the six months ended December 30, 2022:


	Employee Termination Benefits
	(in millions)
Accrual balance at July 1, 2022	$	17
Charges	85
Cash payments	(69)

Accrual balance at December 30, 2022	$	33

Legal Proceedings	6 Months Ended
Legal Proceedings	Dec. 30, 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 13, 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.

Subsequent Events	6 Months Ended
Subsequent Events	Dec. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsOn January 31, 2023, the Board of Directors of the Company authorized the designation of 900,000 shares of Series A Convertible Perpetual Preferred Stock, par value $0.01 per share (the “Preferred Shares”) from the Company’s existing five million authorized but unissued shares of preferred stock and issued the Preferred Shares through a private placement for an aggregate purchase price of $900 million. The Preferred Shares will have a stated value of $1,000 per share and accrue a cumulative preferred dividend at an annual rate of 6.25% per annum (increasing to 7.25% per annum on January 31, 2030 and to 8.25% per annum on January 31, 2033) compounded on a quarterly basis. The Preferred Shares will also participate in any dividends declared for common shareholders on an as-converted equivalent basis. The Preferred Shares will be convertible into shares of the Company’s common stock at an initial conversion rate of $47.75 per share (the “Conversion Price”) (subject to anti-dilution adjustments and certain other one-time adjustments upon the occurrence of various specified spin-off transactions) applied to the aggregate of the stated value plus any cumulative accrued but unpaid dividends (the “Accumulated Stated Value”). In the event of a standalone spin-off transaction, the holders of Preferred Shares may have one third of their Preferred Shares converted to a similar class of preferred shares of the spin-off entity. The Preferred Shares will be convertible at the option of the holder beginning on January 31, 2024, or on the date a specified spin-off transaction is completed, if earlier. The Preferred Shares will be convertible at the option of the Company after January 31, 2026 if the closing price per share of the Company’s common stock exceeds 150% of the Conversion Price for at least 20 out of 30 consecutive trading days. After January 31, 2030, the Company will have the right, but not the obligation, to redeem the Preferred Shares at an amount equal to 110% of the Accumulated Stated Value. Redemption is contingently mandatory in the event of a fundamental change in the business as defined in the designation of the Preferred Shares. The Preferred Shares will vote on an as-converted equivalent basis along with holders of the Company’s common stock, except to the extent that shares issuable upon conversion of the Preferred Stock would exceed 19.9% of common stock outstanding immediately prior to the original issuance date of the Preferred Stock. In the event of liquidation, holders of the Preferred Shares will be senior to the holders of the Company’s common stock.

Organization and Basis of Presentation (Policies)	6 Months Ended
Organization and Basis of Presentation (Policies)	Dec. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Western Digital Corporation (“Western Digital” or the “Company”) is a leading developer, manufacturer, and provider of data storage devices and solutions based on both flash-based products (“Flash”) and hard disk drives (“HDD”) technologies. With dedicated Flash and HDD business units driving advancements in memory technologies, the Company creates and drives innovations needed to help customers capture, preserve, access, and transform an ever-increasing diversity of data. The accounting policies followed by the Company are set forth in Part II, Item 8, Note 1, Organization and Basis of Presentation, of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10‑K for the year ended July 1, 2022. In the opinion of management, all adjustments necessary to fairly state the Condensed Consolidated Financial Statements have been made. All such adjustments are of a normal, recurring nature. Certain information and footnote disclosures normally included in the Consolidated Financial Statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in the Company’s Annual Report on Form 10‑K for the year ended July 1, 2022. The results of operations for interim periods are not necessarily indicative of results to be expected for the full year.
Fiscal Year	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, the Company reports a 53-week fiscal year to align the fiscal year with the foregoing policy. Fiscal years 2023, which ends on June 30, 2023, and 2022, which ended on July 1, 2022, are each comprised of 52 weeks, with all quarters presented consisting of 13 weeks.
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. The Company manages and reports under two reportable segments: Flash and HDD. The Company’s Chief Operating Decision Maker (“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 not available or reviewed by the CODM to evaluate the performance of or to allocate resources to the segments.
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 current macroeconomic conditions. However, actual results could differ materially from these estimates.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 prior 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 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. The Company adopted this ASU on July 2, 2022, the first day of the year ending June 30, 2023, and the adoption did not have a material impact on its Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In September 2022, the FASB issued ASU No. 2022-04, “Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations”. This guidance requires annual and interim disclosures for entities that use supplier finance programs in connection with the purchase of goods and services. The ASU is effective for fiscal years beginning after December 15, 2022, with early adoption permitted, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. The Company is currently evaluating the extent of the impact of this ASU on its Condensed Consolidated Financial Statements.
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)

6 Months Ended

Dec. 30, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

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


	Three Months Ended						Six Months Ended
	December 30, 2022			December 31, 2021			December 30, 2022			December 31, 2021
	$ in millions
Net revenue:
Flash	$	1,657		$	2,620		$	3,379		$	5,110
HDD	1,450			2,213			3,464			4,774
Total net revenue	$	3,107		$	4,833		$	6,843		$	9,884
Gross profit:
Flash	$	240		$	946		$	662		$	1,867
HDD	300			677			874			1,469
Total gross profit for segments	540			1,623			1,536			3,336
Unallocated corporate items:

Stock-based compensation expense	(12)			(14)			(26)			(23)
Amortization of acquired intangible assets	—			(26)			(1)			(65)



Total unallocated corporate items	(12)			(40)			(27)			(88)
Consolidated gross profit	$	528		$	1,583		$	1,509		$	3,248
Gross margin:
Flash	14.5		%	36.1		%	19.6		%	36.5		%
HDD	20.7		%	30.6		%	25.2		%	30.8		%
Consolidated gross margin	17.0		%	32.8		%	22.1		%	32.9		%

Schedule of Disaggregation of Revenue

The Company’s disaggregated revenue information is as follows:



	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)





Revenue by End Market
Cloud	$	1,224	$	1,920	$	3,053	$	4,145
Client	1,089		1,854		2,318		3,707
Consumer	794		1,059		1,472		2,032
Total Revenue	$	3,107	$	4,833	$	6,843	$	9,884

Revenue by Geography
Asia	$	1,494	$	2,610	$	3,180	$	5,285
Americas	1,090		1,407		2,513		3,021
Europe, Middle East and Africa	523		816		1,150		1,578
Total Revenue	$	3,107	$	4,833	$	6,843	$	9,884

Schedule of Goodwill

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


	Flash		HDD		Total
	(in millions)
Balance at July 1, 2022	$	5,718	$	4,323	$	10,041

Foreign currency translation adjustment	—		—		—

Balance at December 30, 2022	$	5,718	$	4,323	$	10,041

- 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
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-Paragraph 1
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-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)

6 Months Ended

Dec. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Inventories

Inventories


	December 30, 2022		July 1, 2022
	(in millions)
Inventories:
Raw materials and component parts	$	1,968	$	1,603
Work-in-process	966		1,162
Finished goods	839		873
Total inventories	$	3,773	$	3,638

Schedule of Property, Plant and Equipment, Net

Property, plant and equipment, net


	December 30, 2022		July 1, 2022
	(in millions)
Property, plant and equipment:
Land	$	269	$	269
Buildings and improvements	1,953		1,920
Machinery and equipment	8,692		8,642
Computer equipment and software	506		494
Furniture and fixtures	54		54
Construction-in-process	690		591
Property, plant and equipment, gross	12,164		11,970
Accumulated depreciation	(8,476)		(8,300)
Property, plant and equipment, net	$	3,688	$	3,670

Schedule of Intangible Assets

Other Intangible assets, net


	December 30, 2022		July 1, 2022
	(in millions)
Other Intangible assets:
Finite-lived intangible assets	$	5,492	$	5,493
In-process research and development	80		80
Accumulated amortization	(5,437)		(5,360)
Other Intangible assets, net	$	135	$	213

Schedule of Product Warranty Liability

Product warranty liability

Changes in the warranty accrual were as follows:


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)
Warranty accrual, beginning of period	$	340	$	370	$	345	$	363

Charges to operations	25		36		57		76
Utilization	(60)		(28)		(94)		(51)
Changes in estimate related to pre-existing warranties	(16)		(27)		(19)		(37)
Warranty accrual, end of period	$	289	$	351	$	289	$	351

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:


	December 30, 2022		July 1, 2022
	(in millions)
Warranty accrual:
Current portion (included in Accrued expenses)	$	131	$	162
Long-term portion (included in Other liabilities)	158		183
Total warranty accrual	$	289	$	345

Schedule of Other Liabilities

Other liabilities


	December 30, 2022		July 1, 2022
	(in millions)
Other liabilities:
Non-current net tax payable	$	458	$	659
Non-current portion of unrecognized tax benefits	452		477
Other non-current liabilities	607		643
Total other liabilities	$	1,517	$	1,779

Schedule of Accumulated Other Comprehensive Loss

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


	Actuarial Pension Losses		Foreign Currency Translation Adjustment		Unrealized Losses on Derivative Contracts		Total Accumulated Comprehensive Loss
	(in millions)















Balance at July 1, 2022	$	(11)	$	(277)	$	(266)	$	(554)
Other comprehensive income before reclassifications	—		15		35		50
Amounts reclassified from accumulated other comprehensive loss	—		—		177		177
Income tax benefit related to items of other comprehensive loss	—		2		(44)		(42)
Net current-period other comprehensive income	—		17		168		185
Balance at December 30, 2022	$	(11)	$	(260)	$	(98)	$	(369)

Fair Value Measurements and Investments (Tables)

6 Months Ended

Dec. 30, 2022

Fair Value Disclosures [Abstract]

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


	December 30, 2022
	Level 1		Level 2		Level 3		Total
	(in millions)
Assets:

Cash equivalents - Money market funds	$	435	$	—	$	—	$	435


















Foreign exchange contracts	—		105		—		105
Interest rate swap contracts	—		6		—		6

Total assets at fair value	$	435	$	111	$	—	$	546
Liabilities:
Foreign exchange contracts	$	—	$	97	$	—	$	97


Total liabilities at fair value	$	—	$	97	$	—	$	97


	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


	December 30, 2022				July 1, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(in millions)







1.50% convertible notes due 2024	$	1,097	$	1,052	$	1,048	$	1,040

4.75% senior unsecured notes due 2026	2,292		2,169		2,291		2,205
Variable interest rate Term Loan A-2 maturing 2027	2,691		2,661		2,693		2,621
2.85% senior unsecured notes due 2029	496		388		495		412
3.10% senior unsecured notes due 2032	495		361		495		389




Total	$	7,071	$	6,631	$	7,022	$	6,667

Debt (Tables)

6 Months Ended

Dec. 30, 2022

Debt Disclosure [Abstract]

Schedule of Debt

Debt consisted of the following:


	December 30, 2022		July 1, 2022
	(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		2,700
2.85% senior unsecured notes due 2029	500		500
3.10% senior unsecured notes due 2032	500		500

Total debt	7,100		7,100
Issuance costs and debt discounts	(29)		(78)
Subtotal	7,071		7,022
Less current portion of long-term debt	(38)		—
Long-term debt	$	7,033	$	7,022

Schedule of Leverage Ratio

As amended, the Company is required to maintain a maximum ratio (“Leverage Ratio”) of total funded debt to trailing twelve-month Consolidated Adjusted EBITDA (as defined in the Credit Agreement) at the end of each quarter as follows:


Quarter ending:			Leverage ratio
December 30, 2022			3.25 to 1.00
March 31, 2023			3.75 to 1.00
June 30, 2023			4.75 to 1.00
September 29, 2023			5.00 to 1.00
December 29, 2023			4.75 to 1.00
March 29, 2024			4.50 to 1.00
June 28, 2024			4.25 to 1.00
September 27, 2024			3.75 to 1.00
December 27, 2024 and thereafter			3.25 to 1.00

Pension and Other Post-Retirement Benefit Plans (Tables)

6 Months Ended

Dec. 30, 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:


	December 30, 2022		July 1, 2022
	(in millions)











Benefit obligation at end of period	$	302	$	294









Fair value of plan assets at end of period	195		189
Unfunded status	$	107	$	105

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 Condensed Consolidated Balance Sheets:


	December 30, 2022		July 1, 2022
	(in millions)
Current liabilities	$	1	$	1
Non-current liabilities	106		104
Net amount recognized	$	107	$	105

Related Parties and Related Commitments and Contingencies (Tables)

6 Months Ended

Dec. 30, 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:


	December 30, 2022		July 1, 2022
	(in millions)
Notes receivable, Flash Partners	$	12	$	27
Notes receivable, Flash Alliance	66		55
Notes receivable, Flash Forward	737		793
Investment in Flash Partners	174		166
Investment in Flash Alliance	251		243
Investment in Flash Forward	117		112
Total notes receivable and investments in Flash Ventures	$	1,357	$	1,396

Schedule of Variable Interest Entity Maximum Loss Exposure


	December 30, 2022
	(in millions)
Notes receivable	$	815
Equity investments	542
Operating lease guarantees	1,895
Inventory and prepayments	1,128
Maximum estimable loss exposure	$	4,380

Schedule of Guarantor Obligations


	Lease Amounts
	(Japanese yen, in billions)		(U.S. dollar, in millions)
Total guarantee obligations	¥	250	$	1,895

Schedule of Remaining Guarantee Obligations


Annual Installments	Payment of Principal Amortization		Purchase Option Exercise Price at Final Lease Terms		Guarantee Amount
	(in millions)
Remaining six months of 2023	$	285	$	55	$	340
2024	450		99		549
2025	250		90		340
2026	261		136		397
2027	81		116		197
2028 and thereafter	12		60		72
Total guarantee obligations	$	1,339	$	556	$	1,895

Leases and Other Commitments (Tables)

6 Months Ended

Dec. 30, 2022

Leases [Abstract]

Schedule of Supplemental Balance Sheet Disclosures

The following table summarizes supplemental balance sheet information related to operating leases as of December 30, 2022:


	Lease Amounts
	($ in millions)
Minimum lease payments by year:
Remaining six months of 2023	$	24
2024	47
2025	44
2026	43
2027	39
Thereafter	147
Total future minimum lease payments	344
Less: Imputed interest	54
Present value of lease liabilities	290
Less: Current portion (included in Accrued expenses)	39
Long-term operating lease liabilities (included in Other liabilities )	$	251

Operating lease right-of-use assets (included in Other non-current assets)	$	271

Weighted average remaining lease term in years	8.1
Weighted average discount rate	4.1		%

Schedule of Supplemental Cash Flow Disclosures

The following table summarizes supplemental disclosures of operating cost and cash flow information related to operating leases:


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)
Cost of operating leases	$	14	$	14	$	28	$	27
Cash paid for operating leases	12		12		26		24
Operating lease assets obtained in exchange for operating lease liabilities	—		11		4		123

Schedule of Long-term Purchase Agreements

As of December 30, 2022, the Company had the following minimum long-term commitments:


	Long-Term Commitments
	(in millions)
Year:
Remaining six months of 2023	$	193
2024	256
2025	180
2026	53
2027	46
Thereafter	150
Total	$	878

Shareholders' Equity (Tables)

6 Months Ended

Dec. 30, 2022

Share-Based Payment Arrangement [Abstract]

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


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)

RSUs and PSUs	$	79	$	78	$	154	$	145
ESPP	7		9		18		18
Total	$	86	$	87	$	172	$	163


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)
Cost of revenue	$	12	$	14	$	26	$	23
Research and development	40		43		79		83
Selling, general and administrative	34		30		67		57

Subtotal	86		87		172		163
Tax benefit	(11)		(13)		(24)		(28)
Total	$	75	$	74	$	148	$	135

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 December 30, 2022:


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

RSUs and PSUs (1)	$	571	2.4
ESPP	89		1.9
Total unamortized compensation cost	$	660

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

Schedule of Stock Option Activity

The following table summarizes stock option activity under the Company’s incentive plans. All outstanding options were exercisable at December 30, 2022:


	Number of Shares	Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Life
	(in millions)			(in years)

























Options outstanding at July 1, 2022	0.9	$	66.76	0.54



Canceled or expired	(0.5)	83.50
Options outstanding at December 30, 2022	0.4	$	44.63	0.57

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 July 1, 2022	15.4	$	52.89
Granted	4.7	43.34

Vested	(4.7)	53.76		$	200
Forfeited	(0.9)	58.54
RSUs and PSUs outstanding at December 30, 2022	14.5	$	49.18

Income Tax Expense (Tables)

6 Months Ended

Dec. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

The following table presents the Company’s Income tax expense and the effective tax rate:


	Three Months Ended						Six Months Ended
	December 30, 2022			December 31, 2021			December 30, 2022			December 31, 2021
	($ in millions)
Income (loss) before taxes	$	(385)		$	646		$	(301)		$	1,350
Income tax expense	61			82			118			176
Effective tax rate	(16)		%	13		%	(39)		%	13		%

Schedule of Income Tax Contingencies

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits excluding accrued interest and penalties for the three months ended December 30, 2022 (in millions):


Accrual balance at July 1, 2022	$	1,047
Gross increases related to current year tax positions	4
Gross increases related to prior year tax positions	11
Gross decreases related to prior year tax positions	(12)
Settlements	(5)
Lapse of statute of limitations	(3)
Accrual balance at December 30, 2022	$	1,042

Net Income (Loss) Per Common Share (Tables)

6 Months Ended

Dec. 30, 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:


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021			December 30, 2022		December 31, 2021
	(in millions, except per share data)
Net income (loss)	$	(446)	$	564		$	(419)	$	1,174
Weighted average shares outstanding:
Basic	318		312			317		311
Employee stock options, RSUs, PSUs, and ESPP	—		3			—		4
Basic and diluted	318		315			317		315
Income (loss) per common share
Basic	$	(1.40)	$	1.81		$	(1.32)	$	3.77
Diluted	$	(1.40)	$	1.79		$	(1.32)	$	3.73
Anti-dilutive potential common shares excluded	15		5			15		3

Employee Termination, Asset Impairment, and Other Charges (Tables)

6 Months Ended

Dec. 30, 2022

Postemployment Benefits [Abstract]

Schedule of Restructuring Reserve by Type of Cost

The Company recorded the following charges related to these actions:


	Three Months Ended				Six Months Ended
	December 30, 2022		December 31, 2021		December 30, 2022		December 31, 2021
	(in millions)




Employee termination benefits	$	61	$	3	$	85	$	18









Asset impairments and losses on disposal of assets	15		(1)		15		2




Total employee termination, asset impairment, and other charges	$	76	$	2	$	100	$	20

The following table presents an analysis of the components of these activities against the reserve during the six months ended December 30, 2022:


	Employee Termination Benefits
	(in millions)
Accrual balance at July 1, 2022	$	17
Charges	85
Cash payments	(69)

Accrual balance at December 30, 2022	$	33

Organization and Basis of Presentation - Additional Information (Details)	6 Months Ended
	Dec. 30, 2022 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2

Recent Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Millions	Dec. 30, 2022	Jul. 02, 2022	Jul. 01, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Additional paid-in capital	$ (3,770)		$ (3,733)
Retained earnings	$ 8,711		$ 9,039
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2020-06
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 (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Revenue, net	$ 3,107	$ 4,833	$ 6,843	$ 9,884
Gross profit	528	1,583	1,509	3,248
Stock-based compensation expense			172	163
Total operating expenses	$ 849	$ 856	$ 1,672	$ 1,743
Gross margin, percentage	17.00%	32.80%	22.10%	32.90%
Operating Segments
Segment Reporting Information [Line Items]
Revenue, net	$ 3,107	$ 4,833	$ 6,843	$ 9,884
Gross profit	540	1,623	1,536	3,336
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Stock-based compensation expense	(12)	(14)	(26)	(23)
Amortization of acquired intangible assets	0	(26)	(1)	(65)
Total operating expenses	$ (12)	$ (40)	$ (27)	$ (88)
Flash
Segment Reporting Information [Line Items]
Gross margin, percentage	14.50%	36.10%	19.60%	36.50%
Flash \| Operating Segments
Segment Reporting Information [Line Items]
Revenue, net	$ 1,657	$ 2,620	$ 3,379	$ 5,110
Gross profit	$ 240	$ 946	$ 662	$ 1,867
HDD
Segment Reporting Information [Line Items]
Gross margin, percentage	20.70%	30.60%	25.20%	30.80%
HDD \| Operating Segments
Segment Reporting Information [Line Items]
Revenue, net	$ 1,450	$ 2,213	$ 3,464	$ 4,774
Gross profit	$ 300	$ 677	$ 874	$ 1,469

Business Segments, Geographic Information, and Concentrations of Risk - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue, net	$ 3,107	$ 4,833	$ 6,843	$ 9,884
Asia
Disaggregation of Revenue [Line Items]
Revenue, net	1,494	2,610	3,180	5,285
Americas
Disaggregation of Revenue [Line Items]
Revenue, net	1,090	1,407	2,513	3,021
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Revenue, net	523	816	1,150	1,578
Cloud
Disaggregation of Revenue [Line Items]
Revenue, net	1,224	1,920	3,053	4,145
Client
Disaggregation of Revenue [Line Items]
Revenue, net	1,089	1,854	2,318	3,707
Consumer
Disaggregation of Revenue [Line Items]
Revenue, net	$ 794	$ 1,059	$ 1,472	$ 2,032

- 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
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-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
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-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
-SubTopic 10
-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 - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021
Flash
Concentration Risk [Line Items]
Carrying value, percentage	9.00%		9.00%
Impairment charges	$ 0
HDD
Concentration Risk [Line Items]
Carrying value, percentage	28.00%		28.00%
Impairment charges			$ 0
Revenue from Contract with Customer \| Customer Concentration Risk \| Top Ten Customers
Concentration Risk [Line Items]
Concentration risk, percentage	47.00%	46.00%	48.00%	44.00%

Business Segments, Geographic Information, and Concentrations of Risk - Goodwill Rollforward (Details) $ in Millions	6 Months Ended
	Dec. 30, 2022 USD ($)
Goodwill [Roll Forward]
Balance at July 1, 2022	$ 10,041
Foreign currency translation adjustment	0
Balance at December 30, 2022	10,041
Flash
Goodwill [Roll Forward]
Balance at July 1, 2022	5,718
Foreign currency translation adjustment	0
Balance at December 30, 2022	5,718
HDD
Goodwill [Roll Forward]
Balance at July 1, 2022	4,323
Foreign currency translation adjustment	0
Balance at December 30, 2022	$ 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

Revenues - Revenue Remaining Performance Obligation (Details) $ in Millions	Dec. 30, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 17
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-31
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 14
Revenue, remaining performance obligation, period	6 months
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	$ 3
Revenue, remaining performance obligation, period

Supplemental Financial Statement Data - Additional Information (Details) - USD ($)	3 Months Ended	6 Months Ended
	Dec. 30, 2022	Dec. 30, 2022	Dec. 31, 2021	Jul. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Proceeds on sale of trade accounts receivable		$ 391,000,000	$ 0
Factored receivables outstanding	$ 100,000,000	100,000,000		$ 300,000,000
Other comprehensive loss, foreign currency transaction and translation adjustment, net of tax	119,000,000	181,000,000
Loss, reclassification, after tax	$ (6,000,000)	$ (4,000,000)

Supplemental Financial Statement Data - Inventory (Details) - USD ($) $ in Millions	Dec. 30, 2022	Jul. 01, 2022
Inventories:
Raw materials and component parts	$ 1,968	$ 1,603
Work-in-process	966	1,162
Finished goods	839	873
Total inventories	$ 3,773	$ 3,638

Supplemental Financial Statement Data - Property, Plant and Equipment (Details) - USD ($) $ in Millions	Dec. 30, 2022	Jul. 01, 2022
Property, plant and equipment:
Property, plant and equipment, gross	$ 12,164	$ 11,970
Accumulated depreciation	(8,476)	(8,300)
Property, plant and equipment, net	3,688	3,670
Land
Property, plant and equipment:
Property, plant and equipment, gross	269	269
Buildings and improvements
Property, plant and equipment:
Property, plant and equipment, gross	1,953	1,920
Machinery and equipment
Property, plant and equipment:
Property, plant and equipment, gross	8,692	8,642
Computer equipment and software
Property, plant and equipment:
Property, plant and equipment, gross	506	494
Furniture and fixtures
Property, plant and equipment:
Property, plant and equipment, gross	54	54
Construction-in-process
Property, plant and equipment:
Property, plant and equipment, gross	$ 690	$ 591

Supplemental Financial Statement Data - Other Intangible Assets (Details) - USD ($) $ in Millions	Dec. 30, 2022	Jul. 01, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Finite-lived intangible assets	$ 5,492	$ 5,493
In-process research and development	80	80
Accumulated amortization	(5,437)	(5,360)
Other Intangible assets, net	$ 135	$ 213

Supplemental Financial Statement Data - Warranty Accrual Roll Forward (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty accrual, beginning of period	$ 340	$ 370	$ 345	$ 363
Charges to operations	25	36	57	76
Utilization	(60)	(28)	(94)	(51)
Changes in estimate related to pre-existing warranties	(16)	(27)	(19)	(37)
Warranty accrual, end of period	$ 289	$ 351	$ 289	$ 351

Supplemental Financial Statement Data - Total Warranty Accrual (Details) - USD ($) $ in Millions	Dec. 30, 2022	Sep. 30, 2022	Jul. 01, 2022	Dec. 31, 2021	Oct. 01, 2021	Jul. 02, 2021
Warranty accrual:
Current portion (included in Accrued expenses)	$ 131		$ 162
Long-term portion (included in Other liabilities)	158		183
Total warranty accrual	$ 289	$ 340	$ 345	$ 351	$ 370	$ 363

Supplemental Financial Statement Data - Other Liabilities (Details) - USD ($) $ in Millions	Dec. 30, 2022	Jul. 01, 2022
Other liabilities:
Non-current net tax payable	$ 458	$ 659
Non-current portion of unrecognized tax benefits	452	477
Other non-current liabilities	607	643
Total other liabilities	$ 1,517	$ 1,779

Supplemental Financial Statement Data - Accumulated Other Comprehensive Loss Roll Forward (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 12,107	$ 11,361	$ 12,221	$ 10,721
Other comprehensive income before reclassifications			50
Amounts reclassified from accumulated other comprehensive loss			177
Income tax benefit related to items of other comprehensive loss	(58)	5	(42)	(3)
Other comprehensive income (loss), net of tax	325	(50)	185	(20)
Ending balance	12,115	12,018	12,115	12,018
Actuarial Pension Losses
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(11)
Other comprehensive income before reclassifications			0
Amounts reclassified from accumulated other comprehensive loss			0
Income tax benefit related to items of other comprehensive loss			0
Other comprehensive income (loss), net of tax			0
Ending balance	(11)		(11)
Foreign Currency Translation Adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(277)
Other comprehensive income before reclassifications			15
Amounts reclassified from accumulated other comprehensive loss			0
Income tax benefit related to items of other comprehensive loss			2
Other comprehensive income (loss), net of tax			17
Ending balance	(260)		(260)
Unrealized Losses on Derivative Contracts
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance			(266)
Other comprehensive income before reclassifications			35
Amounts reclassified from accumulated other comprehensive loss			177
Income tax benefit related to items of other comprehensive loss			(44)
Other comprehensive income (loss), net of tax			168
Ending balance	(98)		(98)
Total Accumulated Comprehensive Loss
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(694)	(167)	(554)	(197)
Ending balance	$ (369)	$ (217)	$ (369)	$ (217)

Fair Value Measurements and Investments - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions	Dec. 30, 2022	Jul. 01, 2022
Assets:
Total assets at fair value	$ 546	$ 330
Liabilities:
Total liabilities at fair value	97	316
Cash equivalents - Money market funds
Assets:
Cash equivalents - Money market funds	435	266
Foreign exchange contracts
Assets:
Foreign exchange contracts	105	61
Liabilities:
Derivative liability	97	316
Interest rate swap contracts
Assets:
Foreign exchange contracts	6	3
Level 1
Assets:
Total assets at fair value	435	266
Liabilities:
Total liabilities at fair value	0	0
Level 1 \| Cash equivalents - Money market funds
Assets:
Cash equivalents - Money market funds	435	266
Level 1 \| Foreign exchange contracts
Assets:
Foreign exchange contracts	0	0
Liabilities:
Derivative liability	0	0
Level 1 \| Interest rate swap contracts
Assets:
Foreign exchange contracts	0	0
Level 2
Assets:
Total assets at fair value	111	64
Liabilities:
Total liabilities at fair value	97	316
Level 2 \| Cash equivalents - Money market funds
Assets:
Cash equivalents - Money market funds	0	0
Level 2 \| Foreign exchange contracts
Assets:
Foreign exchange contracts	105	61
Liabilities:
Derivative liability	97	316
Level 2 \| Interest rate swap contracts
Assets:
Foreign exchange contracts	6	3
Level 3
Assets:
Total assets at fair value	0	0
Liabilities:
Total liabilities at fair value	0	0
Level 3 \| Cash equivalents - Money market funds
Assets:
Cash equivalents - Money market funds	0	0
Level 3 \| Foreign exchange contracts
Assets:
Foreign exchange contracts	0	0
Liabilities:
Derivative liability	0	0
Level 3 \| Interest rate swap contracts
Assets:
Foreign exchange contracts	$ 0	$ 0

Fair Value Measurements and Investments - Debt Instrument Fair Value (Details) - USD ($) $ in Millions	Dec. 30, 2022	Jul. 01, 2022
1.50% convertible notes due 2024 \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	1.50%	1.50%
4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	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%
Level 2 \| Carrying Value
Debt Instrument [Line Items]
Long-term debt	$ 7,071	$ 7,022
Level 2 \| Carrying Value \| 1.50% convertible notes due 2024
Debt Instrument [Line Items]
Long-term debt	1,097	1,048
Level 2 \| Carrying Value \| 4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Long-term debt	2,292	2,291
Level 2 \| Carrying Value \| Variable interest rate Term Loan A-2 maturing 2027
Debt Instrument [Line Items]
Long-term debt	2,691	2,693
Level 2 \| Carrying Value \| 2.85% senior unsecured notes due 2029
Debt Instrument [Line Items]
Long-term debt	496	495
Level 2 \| Carrying Value \| 3.10% senior unsecured notes due 2032
Debt Instrument [Line Items]
Long-term debt	495	495
Level 2 \| Fair Value
Debt Instrument [Line Items]
Long-term debt	6,631	6,667
Level 2 \| Fair Value \| 1.50% convertible notes due 2024
Debt Instrument [Line Items]
Long-term debt	1,052	1,040
Level 2 \| Fair Value \| 4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Long-term debt	2,169	2,205
Level 2 \| Fair Value \| Variable interest rate Term Loan A-2 maturing 2027
Debt Instrument [Line Items]
Long-term debt	2,661	2,621
Level 2 \| Fair Value \| 2.85% senior unsecured notes due 2029
Debt Instrument [Line Items]
Long-term debt	388	412
Level 2 \| Fair Value \| 3.10% senior unsecured notes due 2032
Debt Instrument [Line Items]
Long-term debt	$ 361	$ 389

Derivative Instruments and Hedging Activities (Details)	6 Months Ended
Derivative Instruments and Hedging Activities (Details)	Dec. 30, 2022
Foreign Exchange Forward Contracts Designated
Derivatives, Fair Value [Line Items]
Derivative, term of contract (to not exceed)	12 months

Debt - Schedule of Debt (Details) - USD ($) $ in Millions	Dec. 30, 2022	Jul. 01, 2022
Debt Instrument [Line Items]
Debt instrument, carrying amount	$ 7,100	$ 7,100
Issuance costs and debt discounts	(29)	(78)
Subtotal	7,071	7,022
Less current portion of long-term debt	(38)	0
Long-term debt	$ 7,033	$ 7,022
4.75% senior unsecured notes due 2026
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	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	$ 2,700
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	$ 500
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	$ 500
Convertible Debt \| 1.50% convertible notes due 2024
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)	1.50%	1.50%
Debt instrument, carrying amount	$ 1,100	$ 1,100

Debt - Additional Information (Details) - USD ($)	1 Months Ended	6 Months Ended
Debt - Additional Information (Details) - USD ($)	Jan. 31, 2023	Dec. 30, 2022	Dec. 31, 2021	Jul. 02, 2022	Jul. 01, 2022
Debt Instrument [Line Items]
Repayments of revolving credit facility		$ 1,180,000,000	$ 0
1.50% convertible notes due 2024 \| Convertible Debt
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)		1.50%			1.50%
1.50% convertible notes due 2024 \| Convertible Debt \| Cumulative Effect, Period of Adoption, Adjustment
Debt Instrument [Line Items]
Outstanding convertible note amount		$ 1,000,000,000
Debt instrument, interest rate (percentage)				1.50%
1.50% convertible notes due 2024 \| Convertible Debt \| Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2020-06
Debt Instrument [Line Items]
Debt instrument, interest rate (percentage)				1.50%
Delayed Draw Term Loan Agreement \| Subsequent Event \| Line of Credit
Debt Instrument [Line Items]
Debt term	364 days
Commitment fee (percentage)	0.20%
Delayed Draw Term Loan Agreement \| Minimum \| SOFR \| Subsequent Event \| Line of Credit
Debt Instrument [Line Items]
Variable interest rate	1.75%
Delayed Draw Term Loan Agreement \| Minimum \| Base Rate \| Subsequent Event \| Line of Credit
Debt Instrument [Line Items]
Variable interest rate	0.75%
Delayed Draw Term Loan Agreement \| Maximum \| SOFR \| Subsequent Event \| Line of Credit
Debt Instrument [Line Items]
Variable interest rate	2.625%
Delayed Draw Term Loan Agreement \| Maximum \| Base Rate \| Subsequent Event \| Line of Credit
Debt Instrument [Line Items]
Variable interest rate	1.625%
Revolving Credit Facility \| 2027 Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, face amount		$ 2,250,000,000
Revolving Credit Facility \| Delayed Draw Term Loan Agreement \| Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 875,000,000

Debt - Schedule of Leverage Ratio (Details) - Revolving Credit Facility	Dec. 30, 2022
December 30, 2022
Debt Instrument [Line Items]
Covenant, leverage ratio, maximum	3.25
March 31, 2023
Debt Instrument [Line Items]
Covenant, leverage ratio, maximum	3.75
June 30, 2023
Debt Instrument [Line Items]
Covenant, leverage ratio, maximum	4.75
September 29, 2023
Debt Instrument [Line Items]
Covenant, leverage ratio, maximum	5.00
December 29, 2023
Debt Instrument [Line Items]
Covenant, leverage ratio, maximum	4.75
March 29, 2024
Debt Instrument [Line Items]
Covenant, leverage ratio, maximum	4.50
June 28, 2024
Debt Instrument [Line Items]
Covenant, leverage ratio, maximum	4.25
September 27, 2024
Debt Instrument [Line Items]
Covenant, leverage ratio, maximum	3.75
December 27, 2024 and thereafter
Debt Instrument [Line Items]
Covenant, leverage ratio, maximum	3.25

Pension and Other Post-Retirement Benefit Plans - Additional Information (Details)	6 Months Ended
	Dec. 30, 2022
Retirement Benefits [Abstract]
Expected long-term rate of return on plan assets	2.50%

Pension and Other Post-Retirement Benefit Plans - Obligations and Funded Status (Details) - USD ($) $ in Millions	Dec. 30, 2022	Jul. 01, 2022
Retirement Benefits [Abstract]
Benefit obligation at end of period	$ 302	$ 294
Fair value of plan assets at end of period	195	189
Unfunded status	$ 107	$ 105

- Definition

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

+ References + Details

Pension and Other Post-Retirement Benefit Plans - Unfunded Amounts Recognized on Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Dec. 30, 2022	Jul. 01, 2022
Retirement Benefits [Abstract]
Current liabilities	$ 1	$ 1
Non-current liabilities	106	104
Net amount recognized	$ 107	$ 105

Related Parties and Related Commitments and Contingencies - Additional Information (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 30, 2022 USD ($) entity	Dec. 31, 2021 USD ($)	Dec. 30, 2022 USD ($) entity	Dec. 31, 2021 USD ($)	Jul. 01, 2022 USD ($)
Guarantor Obligations [Line Items]
Number of legal entities \| entity	3		3
Accounts payable to related parties	$ 368		$ 368		$ 320
Investment funding commitments, percentage	50.00%		50.00%
Depreciation prepayments	$ 147		$ 147
Remainder of fiscal year	124		124
Next fiscal year	$ 23		$ 23
Unis Venture
Guarantor Obligations [Line Items]
Equity method investment, ownership percentage	49.00%		49.00%
Revenue from Contract with Customer \| Unis Venture \| Product Concentration Risk
Guarantor Obligations [Line Items]
Concentration risk, percentage	3.00%	4.00%	3.00%	4.00%
Accounts Receivable Benchmark \| Product Concentration Risk \| Unis Venture
Guarantor Obligations [Line Items]
Concentration risk, percentage			7.00%		5.00%
Unissoft (Wuxi) Group Co Ltd. \| Unis Venture
Guarantor Obligations [Line Items]
Partner's ownership in venture business	51.00%		51.00%
Western Digital Corp \| Minimum
Guarantor Obligations [Line Items]
Investment funding commitments, percentage	49.90%		49.90%
Western Digital Corp \| Maximum
Guarantor Obligations [Line Items]
Investment funding commitments, percentage	50.00%		50.00%
Equity Method Investee
Guarantor Obligations [Line Items]
Investments in flash ventures	$ 1,000	$ 1,100	$ 2,000	$ 2,300
Accounts payable to related parties	$ 368		$ 368		$ 320

Related Parties and Related Commitments and Contingencies - Equity Investments (Details) - USD ($) $ in Millions	Dec. 30, 2022	Jul. 01, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes receivable and investments in Flash Ventures	$ 1,357	$ 1,396
Flash Partners Ltd
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, related parties	12	27
Investments	174	166
Flash Alliance Ltd
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, related parties	66	55
Investments	251	243
Flash Forward Ltd
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, related parties	737	793
Investments	117	112
Equity Method Investee
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total notes receivable and investments in Flash Ventures	$ 1,357	$ 1,396

Related Parties and Related Commitments and Contingencies - Maximum Loss Exposure (Details) - Dec. 30, 2022 - Equity Method Investee $ in Millions, ¥ in Billions	USD ($)	JPY (¥)
Guarantor Obligations [Line Items]
VIE, reporting entity involvement, maximum loss exposure, amount	$ 4,380
Notes receivable
Guarantor Obligations [Line Items]
VIE, reporting entity involvement, maximum loss exposure, amount	815
Equity investments
Guarantor Obligations [Line Items]
VIE, reporting entity involvement, maximum loss exposure, amount	542
Operating lease guarantees
Guarantor Obligations [Line Items]
Operating lease guarantees	1,895	¥ 250
Inventory and prepayments
Guarantor Obligations [Line Items]
Inventory and prepayments	$ 1,128

Related Parties and Related Commitments and Contingencies - JV Lease Guarantees (Details) - Dec. 30, 2022 $ in Millions, ¥ in Billions	USD ($)	JPY (¥)
Operating lease guarantees \| Equity Method Investee
Loss Contingencies [Line Items]
Total guarantee obligations	$ 1,895	¥ 250

Related Parties and Related Commitments and Contingencies - Joint Venture Lease Amounts (Details) - Equity Method Investee $ in Millions	Dec. 30, 2022 USD ($)
Guarantor Obligations [Line Items]
Remaining six months of 2023	$ 340
2024	549
2025	340
2026	397
2027	197
2028 and thereafter	72
Total guarantee obligations	1,895
Payment of Principal Amortization
Guarantor Obligations [Line Items]
Remaining six months of 2023	285
2024	450
2025	250
2026	261
2027	81
2028 and thereafter	12
Total guarantee obligations	1,339
Purchase Option Exercise Price at Final Lease Terms
Guarantor Obligations [Line Items]
Remaining six months of 2023	55
2024	99
2025	90
2026	136
2027	116
2028 and thereafter	60
Total guarantee obligations	$ 556

Leases and Other Commitments - Supplemental Balance Sheet (Details) $ in Millions	Dec. 30, 2022 USD ($)
Minimum lease payments by year:
Remaining six months of 2023	$ 24
2024	47
2025	44
2026	43
2027	39
Thereafter	147
Total future minimum lease payments	344
Less: Imputed interest	54
Present value of lease liabilities	$ 290
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses
Less: Current portion (included in Accrued expenses)	$ 39
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities
Long-term operating lease liabilities (included in Other liabilities )	$ 251
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)	$ 271
Weighted average remaining lease term in years	8 years 1 month 6 days
Weighted average discount rate	4.10%

Leases and Other Commitments - Supplemental Cash Flow (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021
Leases [Abstract]
Cost of operating leases	$ 14	$ 14	$ 28	$ 27
Cash paid for operating leases	12	12	26	24
Operating lease assets obtained in exchange for operating lease liabilities	$ 0	$ 11	$ 4	$ 123

Leases and Other Commitments - Long-Term Commitments (Details) $ in Millions	Dec. 30, 2022 USD ($)
Purchase Obligation, Fiscal Year Maturity [Abstract]
Remaining six months of 2023	$ 193
2024	256
2025	180
2026	53
2027	46
Thereafter	150
Total	$ 878

Shareholders' Equity - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	$ 86	$ 87	$ 172	$ 163
Tax benefit	(11)	(13)	(24)	(28)
Total	75	74	148	135
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	12	14	26	23
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	40	43	79	83
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	34	30	67	57
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	79	78	154	145
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses on stock-based compensation	$ 7	$ 9	$ 18	$ 18

Shareholders' Equity - Unrecognized Share-based Compensation (Details) $ in Millions	6 Months Ended
	Dec. 30, 2022 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Compensation Costs	$ 660
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Compensation Costs	$ 571
Weighted Average Service Period	2 years 4 months 24 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unamortized Compensation Costs	$ 89
Weighted Average Service Period	1 year 10 months 24 days

Shareholders' Equity - Stock Option Activity (Details) - $ / shares shares in Millions	6 Months Ended	12 Months Ended
	Dec. 30, 2022	Jul. 01, 2022
Number of Shares
Options outstanding, beginning balance (in shares)	0.9
Canceled or expired (in shares)	(0.5)
Options outstanding, ending balance (in shares)	0.4	0.9
Weighted Average Exercise Price Per Share
Options outstanding, beginning balance, exercise price (in dollars per share)	$ 66.76
Canceled or expired, exercise price (in dollars per share)	83.50
Options outstanding, ending balance, exercise price (in dollars per share)	$ 44.63	$ 66.76
Options outstanding, weighted average remaining contractual term	6 months 25 days	6 months 14 days

Shareholders' Equity - Restricted Stock Units And Performance Share Units (Details) - Restricted Stock Units And Performance Share Units $ / shares in Units, shares in Millions, $ in Millions	6 Months Ended
	Dec. 30, 2022 USD ($) $ / shares shares
Number of Shares
Outstanding, beginning balance (in shares) \| shares	15.4
Granted (in shares) \| shares	4.7
Vested (in shares) \| shares	(4.7)
Forfeited (in shares) \| shares	(0.9)
Outstanding, ending balance (in shares) \| shares	14.5
Weighted Average Grant Date Fair Value
Outstanding, beginning balance, grant date fair value (in dollars per share) \| $ / shares	$ 52.89
Granted, grant date fair value (in dollars per share) \| $ / shares	43.34
Vested, grant date fair value (in dollars per share) \| $ / shares	53.76
Forfeited, grant date fair value (in dollars per share) \| $ / shares	58.54
Outstanding, ending balance, grant date fair value (in dollars per share) \| $ / shares	$ 49.18
Aggregate value of restricted stock awards vested \| $	$ 200

Shareholders' Equity - Share Repurchase Program (Details)	Dec. 30, 2022 USD ($)
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
Share Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, remaining authorized repurchase, amount	$ 4,500,000,000

Income Tax Expense - Tax Expense and Effective Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income (loss) before taxes	$ (385)	$ 646	$ (301)	$ 1,350
Income tax expense	$ 61	$ 82	$ 118	$ 176
Effective tax rate	(16.00%)	13.00%	(39.00%)	13.00%

- 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
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-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

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Tax Expense - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021	Jul. 01, 2022
Income Tax Disclosure [Line Items]
Increase to unrecognized tax benefits as a result of ongoing discussions with various taxing authorities	$ 8		$ 25
Unrecognized tax benefits		$ 1,042		$ 1,047
Penalties and interest accrued on unrecognized tax benefits		279
Potential payables related to unrecognized tax benefits		1,180
Federal tax related to adjustments for transfer pricing		1,600
Minimum
Income Tax Disclosure [Line Items]
Penalties and interest accrued on unrecognized tax benefits		720
Mandatory deemed repatriation tax obligations		100
Maximum
Income Tax Disclosure [Line Items]
Penalties and interest accrued on unrecognized tax benefits		760
Mandatory deemed repatriation tax obligations		150
Tax Years 2008 Through 2015
Income Tax Disclosure [Line Items]
Federal tax related to adjustments for transfer pricing		$ 449

Income Tax Expense - Unrecognized Tax Benefits (Details) $ in Millions	6 Months Ended
	Dec. 30, 2022 USD ($)
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefit, beginning balance	$ 1,047
Gross increases related to current year tax positions	4
Gross increases related to prior year tax positions	11
Gross decreases related to prior year tax positions	(12)
Settlements	(5)
Lapse of statute of limitations	(3)
Unrecognized tax benefit, ending balance	$ 1,042

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended				6 Months Ended
	Dec. 30, 2022	Sep. 30, 2022	Dec. 31, 2021	Oct. 01, 2021	Dec. 30, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Net income (loss)	$ (446)	$ 27	$ 564	$ 610	$ (419)	$ 1,174
Weighted average shares outstanding:
Basic (in shares)	318		312		317	311
Employee stock options, RSUs, PSUs, and ESPP (in shares)	0		3		0	4
Diluted (in shares)	318		315		317	315
Income (loss) per common share
Basic (in dollars per share)	$ (1.40)		$ 1.81		$ (1.32)	$ 3.77
Diluted (in dollars per share)	$ (1.40)		$ 1.79		$ (1.32)	$ 3.73
Anti-dilutive potential common shares excluded (in shares)	15		5		15	3

Employee Termination, Asset Impairment, and Other Charges - Expense Recognition (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2022	Dec. 31, 2021	Dec. 30, 2022	Dec. 31, 2021
Postemployment Benefits [Abstract]
Employee termination benefits	$ 61	$ 3	$ 85	$ 18
Asset impairments and losses on disposal of assets	15	(1)	15	2
Total employee termination, asset impairment, and other charges	$ 76	$ 2	$ 100	$ 20

Employee Termination, Asset Impairment, and Other Charges - Business Realignment Activities (Details) - Employee Termination Benefits - Business Realignment $ in Millions	6 Months Ended
	Dec. 30, 2022 USD ($)
Restructuring Reserve [Roll Forward]
Accrual balance at July 1, 2022	$ 17
Charges	85
Cash payments	(69)
Accrual balance at December 30, 2022	$ 33

Subsequent Events (Details) $ / shares in Units, $ in Millions	Jan. 31, 2033	Jan. 31, 2030	Jan. 31, 2023 USD ($) day $ / shares shares
Private Placement \| Convertible Preferred Stock \| Forecast
Subsequent Event [Line Items]
Preferred dividend annual rate increasing per annum	8.25%	7.25%
Subsequent Event \| Convertible Preferred Stock
Subsequent Event [Line Items]
Accumulated stated value, percentage			110.00%
Preferred stock, percentage not to exceed common stock outstanding			19.90%
Subsequent Event \| Maximum \| Convertible Preferred Stock
Subsequent Event [Line Items]
Conversion price, percentage			150.00%
Consecutive trading days \| day			30
Subsequent Event \| Minimum \| Convertible Preferred Stock
Subsequent Event [Line Items]
Consecutive trading days \| day			20
Subsequent Event \| Private Placement \| Series A Preferred Stock
Subsequent Event [Line Items]
Preferred stock, shares authorized (in shares) \| shares			900,000
Preferred stock, par value (in dollars per share)			$ 0.01
Subsequent Event \| Private Placement \| Convertible Preferred Stock
Subsequent Event [Line Items]
Preferred stock, shares authorized (in shares) \| shares			5,000,000
Preferred stock, par value (in dollars per share)			$ 1,000
Aggregate purchase price \| $			$ 900
Preferred dividend annual rate increasing per annum			6.25%
Initial conversion rate (in dollar per share)			$ 47.75