Cover page
Cover page - shares | 6 Months Ended | |
Dec. 29, 2023 | Jan. 22, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 29, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-31560 | |
Entity Incorporation, State or Country Code | L2 | |
Entity Tax Identification Number | 98-1597419 | |
Entity Address, Address Line One | 121 Woodlands Avenue 5 | |
Entity Address, City or Town | Singapore | |
Entity Address, Country | SG | |
Entity Address, Postal Zip Code | 739009 | |
City Area Code | 65 | |
Local Phone Number | 6018-2562 | |
Title of 12(b) Security | Ordinary Shares, par value $0.00001 per share | |
Trading Symbol | STX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Smaller Reporting Company | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 209,510,729 | |
Entity Registrant Name | Seagate Technology Holdings plc | |
Entity Central Index Key | 0001137789 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --06-28 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 29, 2023 | Jun. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 787,000,000 | $ 786,000,000 |
Accounts receivable, net | 471,000,000 | 621,000,000 |
Inventories | 1,053,000,000 | 1,140,000,000 |
Other current assets | 317,000,000 | 358,000,000 |
Total current assets | 2,628,000,000 | 2,905,000,000 |
Property, equipment and leasehold improvements, net | 1,642,000,000 | 1,706,000,000 |
Goodwill | 1,237,000,000 | 1,237,000,000 |
Deferred Income Tax Assets, Net | 1,074,000,000 | 1,117,000,000 |
Other assets, net | 568,000,000 | 591,000,000 |
Total Assets | 7,149,000,000 | 7,556,000,000 |
Current liabilities: | ||
Accounts payable | 1,619,000,000 | 1,603,000,000 |
Accrued employee compensation | 86,000,000 | 100,000,000 |
Accrued warranty | 81,000,000 | 78,000,000 |
Accrued expenses | 743,000,000 | 748,000,000 |
Total current liabilities | 2,529,000,000 | 2,592,000,000 |
Long-term accrued warranty | 86,000,000 | 90,000,000 |
Other non-current liabilities | 679,000,000 | 685,000,000 |
Long-term debt, less current portion | 5,669,000,000 | 5,388,000,000 |
Total Liabilities | 8,963,000,000 | 8,755,000,000 |
Shareholders’ Deficit: | ||
Ordinary shares and additional paid-in capital | 7,377,000,000 | 7,373,000,000 |
Accumulated other comprehensive income | 3,000,000 | 98,000,000 |
Accumulated deficit | (9,194,000,000) | (8,670,000,000) |
Total Shareholders’ Deficit | (1,814,000,000) | (1,199,000,000) |
Total Liabilities and Shareholders’ Deficit | 7,149,000,000 | 7,556,000,000 |
Less: current portion of debt, net of debt issuance costs | $ 0 | $ 63,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,555 | $ 1,887 | $ 3,009 | $ 3,922 |
Cost of revenue | 1,193 | 1,641 | 2,498 | 3,194 |
Product development | 161 | 200 | 332 | 434 |
Marketing and administrative | 108 | 125 | 213 | 254 |
Amortization of intangibles | 0 | 0 | 0 | 3 |
Restructuring Charges | (31) | 81 | (29) | 90 |
Total operating expenses | 1,431 | 2,047 | 3,014 | 3,975 |
Income (loss) from operations | 124 | (160) | (5) | (53) |
Interest income | 3 | 1 | 5 | 2 |
Interest expense | (84) | (77) | (168) | (148) |
Net gain recognized from termination of interest rate swap | 0 | 0 | 104 | 0 |
Net gain (loss) recognized from early redemption of debt | 0 | 204 | (29) | 204 |
Other, net | (47) | (6) | (58) | (16) |
Other (expense) income, net | (128) | 122 | (146) | 42 |
Loss before income taxes | (4) | (38) | (151) | (11) |
Provision for (benefit from) income taxes | 15 | (5) | 52 | (7) |
Net loss | $ (19) | $ (33) | $ (203) | $ (4) |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.09) | $ (0.16) | $ (0.97) | $ (0.02) |
Diluted (in dollars per share) | $ (0.09) | $ (0.16) | $ (0.97) | $ (0.02) |
Number of shares used in per share calculations: | ||||
Basic (in shares) | 209,000 | 206,000 | 209,000 | 207,000 |
Diluted (in shares) | 209,000 | 206,000 | 209,000 | 207,000 |
Cash dividends declared per ordinary share (in dollars per share) | $ 1.4 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Net loss | $ (19) | $ (33) | $ (203) | $ (4) |
Foreign currency translation adjustments | ||||
Foreign currency translation adjustments | 0 | 1 | 1 | 0 |
Total other comprehensive income (loss), net of tax | 18 | 26 | (95) | 63 |
Comprehensive (loss) income | (1) | (7) | (298) | 59 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
Change in net unrealized (losses) gains on cash flow hedges: | ||||
Net unrealized gains (losses) arising during the period | 13 | 19 | (9) | 51 |
Losses (gains) reclassified into earnings | 5 | 6 | (87) | 11 |
Net change | 18 | 25 | (96) | 62 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||||
Change in unrealized components of post-retirement plans: | ||||
Net unrealized gains arising during the period | 0 | (1) | 0 | 0 |
Losses reclassified into earnings | 0 | 1 | 0 | 1 |
Net change | $ 0 | $ 0 | $ 0 | $ 1 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
OPERATING ACTIVITIES | ||
Net loss | $ (203) | $ (4) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 138 | 283 |
Share-based compensation | 55 | 62 |
Deferred income taxes | 41 | (4) |
Other non-cash operating activities, net | (12) | 28 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 150 | 692 |
Inventories | 87 | 371 |
Accounts payable | 54 | (919) |
Accrued employee compensation | (14) | (145) |
BIS settlement penalty | (15) | 0 |
Accrued expenses, income taxes and warranty | (13) | 228 |
Other assets and liabilities | 21 | 108 |
Net cash provided by operating activities | 296 | 496 |
INVESTING ACTIVITIES | ||
Acquisition of property, equipment and leasehold improvements | (140) | (212) |
Proceeds from the sale of assets | 35 | 3 |
Purchases of investments | 0 | (1) |
Net cash used in investing activities | (105) | (210) |
FINANCING ACTIVITIES | ||
Redemption and repurchase of debt | (1,288) | 0 |
Dividends to shareholders | (291) | (292) |
Repurchases of ordinary shares | 0 | (408) |
Taxes paid related to net share settlement of equity awards | (28) | (39) |
Proceeds from issuance of long-term debt | 1,500 | 600 |
Proceeds from issuance of ordinary shares under employee stock plans | 44 | 29 |
Other financing activities, net | (128) | (21) |
Net cash used in financing activities | (191) | (131) |
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash | 1 | 0 |
Increase in cash, cash equivalents and restricted cash | 1 | 155 |
Cash, cash equivalents and restricted cash at the beginning of the period | 788 | 617 |
Cash, cash equivalents and restricted cash at the end of the period | 789 | 772 |
Gain (loss) on repurchase of debt instrument | $ 7 | $ (204) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning balance (in shares) at Jul. 01, 2022 | 210 | ||||
Beginning balance at Jul. 01, 2022 | $ 109 | $ 0 | $ 7,190 | $ 36 | $ (7,117) |
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (4) | (4) | |||
Other comprehensive income | 63 | 63 | |||
Issuance of ordinary shares under employee stock plans (In shares) | 2 | ||||
Issuance of ordinary shares under employee share plans | 29 | 29 | |||
Repurchases of ordinary shares (in shares) | (5) | ||||
Repurchases of ordinary shares | (400) | (400) | |||
Tax withholding related to vesting of restricted stock units (in shares) | (1) | ||||
Tax withholding related to vesting of restricted share units | (39) | (39) | |||
Dividends to shareholders ($0.70 per ordinary share) | (290) | (290) | |||
Share-based compensation | 62 | 62 | |||
Ending balance (in shares) at Dec. 30, 2022 | 206 | ||||
Ending balance at Dec. 30, 2022 | (470) | $ 0 | 7,281 | 99 | (7,850) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of ordinary shares under employee stock plans (In shares) | 2 | ||||
Beginning balance (in shares) at Sep. 30, 2022 | 206 | ||||
Beginning balance at Sep. 30, 2022 | (351) | $ 0 | 7,248 | 73 | (7,672) |
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (33) | (33) | |||
Other comprehensive income | 26 | 26 | |||
Issuance of ordinary shares under employee stock plans (In shares) | 0 | ||||
Issuance of ordinary shares under employee share plans | 0 | 0 | |||
Tax withholding related to vesting of restricted stock units (in shares) | 0 | ||||
Tax withholding related to vesting of restricted share units | 0 | 0 | |||
Dividends to shareholders ($0.70 per ordinary share) | (145) | (145) | |||
Share-based compensation | 33 | 33 | |||
Ending balance (in shares) at Dec. 30, 2022 | 206 | ||||
Ending balance at Dec. 30, 2022 | (470) | $ 0 | 7,281 | 99 | (7,850) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of ordinary shares under employee stock plans (In shares) | 0 | ||||
Beginning balance (in shares) at Jun. 30, 2023 | 207 | ||||
Beginning balance at Jun. 30, 2023 | (1,199) | $ 0 | 7,373 | 98 | (8,670) |
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (203) | (203) | |||
Other comprehensive income | (95) | (95) | |||
Issuance of ordinary shares under employee stock plans (In shares) | 3 | ||||
Issuance of ordinary shares under employee share plans | 44 | 44 | |||
Repurchases of ordinary shares (in shares) | 0 | ||||
Repurchases of ordinary shares | 0 | 0 | |||
Capped calls related to the issuance of exchangeable notes | $ (95) | (95) | |||
Tax withholding related to vesting of restricted stock units (in shares) | 0 | 0 | |||
Tax withholding related to vesting of restricted share units | $ (28) | (28) | |||
Dividends to shareholders ($0.70 per ordinary share) | (293) | (293) | |||
Share-based compensation | 55 | 55 | |||
Ending balance (in shares) at Dec. 29, 2023 | 210 | ||||
Ending balance at Dec. 29, 2023 | (1,814) | $ 0 | 7,377 | 3 | (9,194) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of ordinary shares under employee stock plans (In shares) | 3 | ||||
Beginning balance (in shares) at Sep. 29, 2023 | 209 | ||||
Beginning balance at Sep. 29, 2023 | (1,702) | $ 0 | 7,338 | (15) | (9,025) |
Increase (Decrease) in Stockholders' Equity | |||||
Net loss | (19) | (19) | |||
Other comprehensive income | 18 | 18 | |||
Issuance of ordinary shares under employee stock plans (In shares) | 1 | ||||
Issuance of ordinary shares under employee share plans | 9 | 9 | |||
Capped calls related to the issuance of exchangeable notes | (95) | ||||
Tax withholding related to vesting of restricted stock units (in shares) | 0 | ||||
Tax withholding related to vesting of restricted share units | (3) | (3) | |||
Dividends to shareholders ($0.70 per ordinary share) | (147) | (147) | |||
Share-based compensation | 30 | 30 | |||
Ending balance (in shares) at Dec. 29, 2023 | 210 | ||||
Ending balance at Dec. 29, 2023 | $ (1,814) | $ 0 | $ 7,377 | $ 3 | $ (9,194) |
Increase (Decrease) in Stockholders' Equity | |||||
Issuance of ordinary shares under employee stock plans (In shares) | 1 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 29, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Organization Seagate Technology Holdings plc (“STX”) and its subsidiaries (collectively, unless the context otherwise indicates, the “Company”) is a leading provider of data storage technology and infrastructure solutions. Its principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, the Company produces a broad range of data storage products including solid state drives (“SSDs”) and storage subsystems and offers storage solutions such as a scalable edge-to-cloud mass data platform that includes data transfer shuttles and a storage-as-a-service cloud. HDDs are devices that store digitally encoded data on rapidly rotating disks with magnetic surfaces. HDDs continue to be the primary medium of mass data storage due to their performance attributes, reliability, high capacities, superior quality and cost effectiveness. Complementing HDD storage architectures, SSDs use NAND flash memory integrated circuit assemblies to store data. The Company’s HDD products are designed for mass capacity storage and legacy markets. Mass capacity storage involves well-established use cases, such as hyperscale data centers and public clouds as well as emerging use cases. Legacy markets are those that the Company continues to sell to but does not plan to invest in significantly. The Company’s HDD and SSD product portfolio includes Serial Advanced Technology Attachment (“SATA”), Serial Attached SCSI (“SAS”) and Non-Volatile Memory Express (“NVMe”) based designs to support a wide variety of mass capacity and legacy applications. The Company’s systems portfolio includes storage subsystems for enterprises, cloud service providers (“CSPs”), scale-out storage servers and original equipment manufacturers (“OEMs”). Engineered for modularity, mobility, capacity and performance, these solutions include the Company’s enterprise HDDs and SSDs, enabling customers to integrate powerful, scalable storage within existing environments or create new ecosystems from the ground up in a secure, cost-effective manner. The Company’s Lyve portfolio provides a simple, cost-efficient and secure way to manage massive volumes of data across the distributed enterprise. The Lyve platform includes a shuttle solution that enables enterprises to transfer massive amounts of data from endpoints to the core cloud and a storage-as-a-service cloud offering that provides frictionless mass capacity storage at the metro edge. In January 2024, the Company established Singapore as its principal executive offices to better align its operational footprint. Basis of Presentation and Consolidation The unaudited Condensed Consolidated Financial Statements of the Company and the accompanying notes were prepared in accordance with United States (“U.S.”) Generally Accepted Accounting Principles (“GAAP”). The Company’s unaudited Condensed Consolidated Financial Statements include the accounts of the Company and all its wholly-owned and majority-owned subsidiaries, after elimination of intercompany transactions and balances. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its Condensed Consolidated Financial Statements. The Company’s Consolidated Financial Statements for the fiscal year ended June 30, 2023 are included in its Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission (“SEC”) on August 4, 2023. The Company believes that the disclosures included in these unaudited Condensed Consolidated Financial Statements, when read in conjunction with its Consolidated Financial Statements as of June 30, 2023, and the notes thereto, are adequate to make the information presented not misleading. The results of operations for the three and six months ended December 29, 2023 are not necessarily indicative of the results to be expected for any subsequent interim period or for the Company’s fiscal year ending June 28, 2024. Fiscal Year The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. In fiscal years with 53 weeks, the first quarter consists of 14 weeks and the remaining quarters consist of 13 weeks each. Both the three and six months ended December 29, 2023 and December 30, 2022 consisted of 13 and 26 weeks, respectively. Fiscal years 2024 and 2023 both comprise 52 weeks and end on June 28, 2024 and June 30, 2023, respectively. The fiscal quarters ended December 29, 2023, September 29, 2023 and December 30, 2022, are also referred to herein as the “December 2023 quarter”, the “September 2023 quarter” and the “December 2022 quarter”, respectively. Summary of Significant Accounting Policies Except for the change in the Company’s other long-lived assets policies described below, there have been no material changes to the Company’s significant accounting policies disclosed in Note 1. Basis of Presentation and Summary of Significant Accounting Policies of “Financial Statements and Supplementary Data” contained in Part II, Item 8. of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023, as filed with the SEC on August 4, 2023. Other Long-Lived Assets In accordance with its policy, the Company reviews the estimated useful lives of its fixed assets on an ongoing basis. Effective from the first quarter of fiscal year 2024, the Company changed the useful lives of certain manufacturing equipment from a range of three three or three and six months ended December 29, 2023, respectively. Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (FASB) issued ASU 2022-04 (ASC Subtopic 405-50), Disclosure of Supplier Finance Program Obligations . This ASU requires disclosure of key terms of the outstanding supplier finance programs and a roll forward of the related obligations. The Company adopted this guidance in the quarter ended September 29, 2023. The adoption of this ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07 (ASC Topic 280), Improvements to Reportable Segment Disclosures . This ASU improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The Company is required to adopt this guidance for its annual reporting in fiscal year 2025 and for interim period reporting beginning the first quarter of fiscal year 2026 on a retrospective basis. Early adoption is permitted. This standard is expected to impact the Company’s disclosures and will not have impact on its Condensed Consolidated Financial Statements. In December 2023, the FASB issued ASU 2023-09 (ASC Topic 740), Improvements to Income Tax Disclosures . This ASU requires disaggregated income tax disclosures on the rate reconciliation and income taxes paid. The Company is required to adopt this guidance in the first quarter of the fiscal year 2026. Early adoption is permitted. This standard is expected to impact the Company’s disclosures and will not have impact on its Condensed Consolidated Financial Statements. |
Balance Sheet Information
Balance Sheet Information | 6 Months Ended |
Dec. 29, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Balance Sheet Information | Balance Sheet Information Available-for-sale Debt Securities The following table summarizes, by major type, the fair value and amortized cost of the Company’s available-for-sale debt investments as of December 29, 2023 and June 30, 2023: December 29, 2023 June 30, 2023 (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale debt securities: Money market funds $ 90 $ — $ 90 $ 73 $ — $ 73 Time deposits and certificates of deposit 1 — 1 1 — 1 Other debt securities 15 — 15 16 — 16 Total $ 106 $ — $ 106 $ 90 $ — $ 90 Included in Cash and cash equivalents $ 89 $ 72 Included in Other current assets 2 2 Included in Other assets, net 15 16 Total $ 106 $ 90 As of December 29, 2023 and June 30, 2023, the Company’s Other current assets in cluded $2 million in restricted cash equivalents held as collateral at banks for various performance obligations. As of December 29, 2023 and June 30, 2023, the Compa ny had no available-for-sale debt securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no impairment related to credit losses for available-for-sale debt securities as of December 29, 2023. The fair value and amortized cost of the Company’s investments classified as available-for-sale debt securities as of December 29, 2023, by remaining contractual maturity were as follows: (Dollars in millions) Amortized Cost Fair Value Due in less than 1 year $ 91 $ 91 Due in 1 to 5 years 15 15 Total $ 106 $ 106 Cash, Cash Equivalents and Restricted Cash The following table provides a summary of cash, cash equivalents and restricted cash reported within the Company’s Condensed Consolidated Balance Sheets that reconciles to the corresponding amount in the Company’s Condensed Consolidated Statements of Cash Flows: (Dollars in millions) December 29, 2023 June 30, 2023 December 30, 2022 July 1, 2022 Cash and cash equivalents $ 787 $ 786 $ 770 $ 615 Restricted cash included in Other current assets 2 2 2 2 Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows $ 789 $ 788 $ 772 $ 617 Accounts receivable, net In connection with the Company’ s factoring agreements, from time to time the Company sells trade receivables to a third party for cash proceeds less a discount. During the three and six months ended December 29, 2023, the Company sold trade receivables without recourse for cash proceeds of $290 million and $582 million, respectively. As of December 29, 2023, the total amount that remained subject to servicing by the Company was $290 million. During the three and six months ended December 30, 2022, the Company sold trade receivables without recourse for cash proceeds of $211 million and $411 million, respectively. The discounts on the sale of trade receivables were not material for the three and six months ended December 29, 2023 and December 30, 2022, respectively. Inventories The details of the inventories were as follows: (Dollars in millions) December 29, 2023 June 30, 2023 Raw materials and components $ 214 $ 241 Work-in-process 627 682 Finished goods 212 217 Total inventories $ 1,053 $ 1,140 Other Current Assets The details of the other current assets were as follows: (Dollars in millions) December 29, 2023 June 30, 2023 Vendor receivables $ 122 $ 167 Other current assets 195 191 Total $ 317 $ 358 Property, Equipment and Leasehold Improvements, net The components of property, equipment and leasehold improvements, net, were as follows: (Dollars in millions) December 29, 2023 June 30, 2023 Property, equipment and leasehold improvements $ 10,270 $ 10,267 Accumulated depreciation and amortization (8,628) (8,561) Property, equipment and leasehold improvements, net $ 1,642 $ 1,706 During the three months ended December 29, 2023, the Company did not record accelerated depreciation expense. During the six months ended December 29, 2023, the Company recognized a charge of $13 million for the accelerated depreciation of certain fixed assets, respectively, which was recorded to Cost of revenue in the Condensed Consolidated Statements of Operations. During the three and six months ended December 30, 2022 , the Company recognized a charge of $39 million and $61 million for the accelerated depreciation of certain fixed assets, respectively, which was recorded to Cost of revenue and Product development in the Condensed Consolidated Statements of Operations. Accrued Expenses The details of the accrued expenses were as follows: (Dollars in millions) December 29, 2023 June 30, 2023 Dividends payable $ 147 $ 145 Other accrued expenses 596 603 Total $ 743 $ 748 Accumulated Other Comprehensive Income (“AOCI”) The components of AOCI, net of tax, were as follows: (Dollars in millions) Unrealized Gains/(Losses) on Cash Flow Hedges Unrealized Gains/(Losses) on Post-Retirement Plans Foreign Currency Translation Adjustments Total Balance at June 30, 2023 $ 103 $ (4) $ (1) $ 98 Other comprehensive (loss) income before reclassifications (9) — 1 (8) Amounts reclassified from AOCI (87) — — (87) Other comprehensive (loss) income (96) — 1 (95) Balance at December 29, 2023 $ 7 $ (4) $ — $ 3 Balance at July 1, 2022 $ 51 $ (14) $ (1) $ 36 Other comprehensive income before reclassifications 51 — — 51 Amounts reclassified from AOCI 11 1 — 12 Other comprehensive income 62 1 — 63 Balance at December 30, 2022 $ 113 $ (13) $ (1) $ 99 |
Debt
Debt | 6 Months Ended |
Dec. 29, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table provides details of the Company’s debt as of December 29, 2023 and June 30, 2023: (Dollars in millions) December 29, 2023 June 30, 2023 Unsecured Senior Notes (1) $1,000 issued on May 28, 2014 at 4.75% due January 1, 2025 (the “2025 Notes”) , interest payable semi-annually on January 1 and July 1 of each year. $ 479 $ 479 $700 issued on May 14, 2015 at 4.875% due June 1, 2027 (the “2027 Notes”) , interest payable semi-annually on June 1 and December 1 of each year. 504 504 $500 issued on June 18, 2020 at 4.091% due June 1, 2029 (the “June 2029 Notes”) , interest payable semi-annually on June 1 and December 1 of each year. 469 465 $500 issued on December 8, 2020 at 3.125% due July 15, 2029 (the “July 2029 Notes”) , interest payable semi-annually on January 15 and July 15 of each year. 163 163 $500 issued on May 30, 2023 at 8.25% due December 15, 2029 ( the “December 2029 Notes” ), interest payable semi-annually on June 15 and December 15 of each year. 500 500 $500 issued on June 10, 2020 at 4.125% due January 15, 2031 (the “January 2031 Notes”) , interest payable semi-annually on January 15 and July 15 of each year. 275 275 $500 issued on December 8, 2020 at 3.375% due July 15, 2031 (the “July 2031 Notes”) , interest payable semi-annually on January 15 and July 15 of each year. 72 72 $500 issued on May 30, 2023 at 8.50% due July 15, 2031 ( the “8.50% July 2031 Notes” ), interest payable semi-annually on January 15 and July 15 of each year. 500 500 $750 issued on November 30, 2022 at 9.625% due December 1, 2032 ( the “ 2032 Notes ”), interest payable semi-annually on June 1 and December 1 of each year. 750 750 $500 issued on December 2, 2014 at 5.75% due December 1, 2034 (the “2034 Notes”) , interest payable semi-annually on June 1 and December 1 of each year. 489 489 Exchangeable Senior Notes (1) $1,500 issued on September 13, 2023 at 3.50% due June 1, 2028 ( the “2028 Notes” ), interest payable semi-annually on March 1 and September 1 of each year. 1,500 — Term Loans $600 borrowed on October 14, 2021 at SOFR plus a variable margin ranging from 1.125% to 2.375%, ( the “Term Loan A1”) , repayable in quarterly installments beginning on December 31, 2022, with a final maturity date of September 16, 2025. — 430 $600 borrowed on October 14, 2021 at SOFR plus a variable margin ranging from 1.25% to 2.5%, ( the “Term Loan A2”) , repayable in quarterly installments beginning on December 31, 2022, with a final maturity date of July 30, 2027. — 430 $600 borrowed on August 18, 2022 at SOFR plus a variable margin ranging from 1.25% to 2.5%, (the “Term Loan A3”), repayable in quarterly installments beginning on December 31, 2022, with a final maturity date of July 30, 2027. — 430 5,701 5,487 Less: unamortized debt issuance costs (32) (36) Debt, net of debt issuance costs 5,669 5,451 Less: current portion of long-term debt — (63) Long-term debt, less current portion $ 5,669 $ 5,388 _____________________________ (1) All unsecured senior notes and exchangeable senior notes are issued by Seagate HDD Cayman (“Seagate HDD”), and the obligations under these notes are fully and unconditionally guaranteed, on a senior unsecured basis, by Seagate Technology Unlimited Company (“STUC”) and STX. 2028 Exchangeable Senior Notes and related Capped Call Transactions 2028 Notes. On September 13, 2023, Seagate HDD, in a private placement, issued $1.5 billion in aggregate principal amount of 3.50% exchangeable Senior Notes due 2028 (the “2028 Notes”), which includes $200 million aggregate principal amount pursuant to the over-allotment option of the initial purchasers to purchase additional notes. The 2028 Notes will mature on June 1, 2028, with interest payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2024. The entire outstanding principal amount of Term Loans A1, A2 and A3 were repaid from the proceeds of the 2028 Notes issuance. The exchange was accounted for as a debt extinguishment and the Company recorded a net loss of $29 million, which was included in the Net loss recognized from early redemption of debt in the Company’s Condensed Consolidated Statements of Operations fo r the six months ended December 29, 2023. In connection with the repayment of Term Loans, the Company terminated its interest rate swap agreements. Refer to “ Note 6. Derivative Financial Instruments ” for more details. Prior to March 1, 2028, the 2028 Notes are exchangeable at the option of the holders only under certain circumstances as set forth in the indenture with respect to the 2028 Notes. On or after March 1, 2028, the 2028 Notes are exchangeable at any time at the option of the holders until the close of business on the second scheduled trading day immediately preceding the maturity date, unless the 2028 Notes have been previously redeemed or repurchased by Seagate HDD. Upon exchange of the 2028 Notes, Seagate HDD will pay cash up to the aggregate principal amount of 2028 Notes to be exchanged and will pay or cause to be delivered, as the case may be, cash, ordinary shares of the Company or a combination of cash and ordinary shares of the Company, at Seagate HDD’s election, in respect of any remainder of the exchange obligation in excess of such principal amount. The initial exchange rate for the 2028 Notes is 12.1253 ordinary shares per $1,000 principal amount of 2028 Notes. Seagate HDD may redeem the 2028 Notes at its option, in whole but not in part, if Seagate HDD or the Guarantors have, or on the next interest payment date would, become obligated to pay to the holder of any Note additional amounts as a result of certain tax-related events at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest, including additional interest, if any, to, but excluding, the redemption date; provided that Seagate HDD may only redeem the Notes if: (x) Seagate HDD or the relevant Guarantor cannot avoid these obligations by taking commercially reasonable measures available to Seagate HDD or such Guarantor; and (y) Seagate HDD delivers to the Trustee an opinion of outside legal counsel of recognized standing in the relevant taxing jurisdiction attesting to such tax-related event and obligation to pay additional amounts. Seagate HDD also may redeem the 2028 Notes at its option on or after September 8, 2026, in whole or in part, if the last reported sale price of ordinary shares of the Company has been at least 130% of the exchange price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which Seagate HDD provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which Seagate HDD provides notice of redemption at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If Seagate HDD redeems less than all the outstanding 2028 Notes, at least $150 million aggregate principal amount of 2028 Notes must be outstanding and not subject to redemption as of the relevant notice of redemption date. In connection with the 2028 Notes, the Company and Seagate HDD entered into privately negotiated capped call transactions with certain financial institutions. The cap price of the capped call transactions will initially be $107.848 per share, which represents a premium of approximately 70% over the last reported sale price of the ordinary shares of $63.44 per share on the Nasdaq Global Market on September 7, 2023. The cost of the capped call transactions was $95 million, which met certain accounting criteria to be accounted under Additional Paid-in Capital as part of the Shareholders’ Deficit and are not accounted as derivatives in the Company’s Condensed Consolidated Balance Sheets. Credit Agreement The credit agreement dated as of February 20, 2019, by and among, Seagate Technology Holdings plc, Seagate HDD, The Bank of Nova Scotia, as administrative agent, and the lenders party thereto (as amended from time to time, the “Credit Agreement”) includes two financial covenants: (1) interest coverage ratio and (2) total net leverage ratio. The maximum permitted total net leverage ratio did not apply for the fiscal quarter ended December 29, 2023 and will not apply for the fiscal quarter ending March 29, 2024. For the fiscal quarters ending June 28, 2024 until the end of the covenant relief period, which terminates on June 27, 2025, the maximum permitted total net leverage ratio is 6.75 to 1.00, and applies only to the extent that the aggregate outstanding amount of revolving loans, swing line loans and the aggregate face amount of certain letters of credit exceeds 25% of the then outstanding revolving commitments in effect (the “Testing Condition”) as of the last day of the fiscal quarter. The maximum permitted total leverage ratio for each fiscal quarter ending after June 27, 2025 is 4.00 to 1.00. The minimum interest coverage ratio did not apply for the fiscal quarter ended December 29, 2023 and will not apply for the fiscal quarter ending March 29, 2024. For the fiscal quarters ending June 28, 2024 until June 27, 2025, the minimum interest coverage ratio is 2.25 to 1.00, and applies only to the extent that the Testing Condition is satisfied as of the last day of the fiscal quarter. The minimum interest coverage ratio is 3.25 to 1.00 for each fiscal quarter ending after June 27, 2025. Future Principal Payments on Long-term Debt At December 29, 2023, future principal payments on long-term debt were as follows (in millions): Fiscal Year Principal Amount Remainder of 2024 $ — 2025 479 2026 — 2027 505 2028 1,500 Thereafter 3,245 Total $ 5,729 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 29, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company recorded income tax provisions of $15 million and $52 million for the three and six months ended December 29, 2023, respectively. The discrete items in the income tax provision were not material for the three months ended December 29, 2023. The income tax provision for the six months ended December 29, 2023 included approximately $36 million of net discrete expense, primarily associated with an increase in the Company’s valuation allowance to account for the impacts of new tax guidance which clarifies the treatment of specified research and experimental expenditures issued by the U.S. Treasury Department under Internal Revenue Code Section 174 during the September 2023 quarter, partially offset by net excess tax benefits related to share-based compensation expense. Additional guidance issued by the Treasury department in December 2023 did not result in any impacts. The Company will have income taxes payable based on profits generated in various jurisdictions. During the six months ended December 29, 2023, the Company’s unrecognized tax benefits excluding interest and penalties decreased by approximately $8 million to $108 million, substantially all of which would impact the effective tax rate, if recognized, subject to certain future valuation allowance reversals. The Company is not expecting material changes to its unrecognized tax benefits in the next twelve months beginning December 30, 2023. The Company recorded income tax benefits of $5 million and $7 million for the three and six months ended December 30, 2022, respectively. The discrete items in the income tax benefit were not material for the three months ended December 30, 2022. The income tax benefit for the six months ended December 30, 2022 included approximately $5 million of net discrete tax benefit, primarily associated with excess tax benefits related to share-based compensation expense. |
Restructuring and Exit Costs
Restructuring and Exit Costs | 6 Months Ended |
Dec. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Exit Costs | Restructuring and Other, net The Company recorded restructuring and other, net benefits of $31 million and $29 million for the three and six months ended December 29, 2023, respectively, primarily due to the net gain of $30 million from the sale and leaseback of certain property during the December 2023 quarter. The net proceeds of $34 million were recorded as an investing inflow on the Company’s Condensed Statements of Cash Flows. For the three and six months ended December 30, 2022, the Company recorded restructuring charges of $81 million and $90 million, respectively. The Company’s restructuring plans are comprised primarily of charges related to workforce reduction costs, including severance and other one-time termination benefits, facilities and other exit costs. All restructuring charges are reported in Restructuring and other, net on the Company’s Condensed Consolidated Statement of Operations. The Company’s significant restructuring plans are described below. October 2022 Plan - On October 24, 2022, the Company committed to an October 2022 restructuring plan (the “October 2022 Plan”) to reduce its cost structure to better align the Company’s operational needs to current economic conditions while continuing to support the long-term business strategy. On March 29, 2023, in light of further deteriorating economic conditions, the Company committed to an expansion of the October 2022 Plan to further reduce its global headcount by approximately 480 employees to a total reduction of approximately 3,480 employees. This expanded plan included aligning its business plan to near-term market conditions, along with other cost saving measures. The October 2022 Plan was substantially completed by the end of fiscal year 2023. April 2023 Plan - On April 20, 2023, the Company committed to an April 2023 restructuring plan (the “April 2023 Plan”) to further reduce its cost structure in response to changes in macroeconomic and business conditions. The April 2023 Plan was intended to align the Company’s operational needs with the near-term demand environment while continuing to support the long-term business strategy. The April 2023 Plan was substantially completed by the end of fiscal year 2023. The following table summarizes the Company’s restructuring activities under its active restructuring plans: April 2023 Plan October 2022 Plan Other Plans (Dollars in millions) Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Total Accrual balances at June 30, 2023 $ 108 $ — $ 1 $ 5 $ 1 $ 4 $ 119 Restructuring charges — — — — 3 — 3 Cash payments (104) — (1) (1) (4) — (110) Adjustments (1) — — (1) — — (2) Accrual balances at December 29, 2023 $ 3 $ — $ — $ 3 $ — $ 4 $ 10 Total costs incurred inception to date as of December 29, 2023 $ 144 $ 3 $ 104 $ 5 $ 66 $ 13 $ 335 Total expected charges to be incurred as of December 29, 2023 $ — $ — $ — $ — $ — $ — $ — Of the accrued restructuring balance of $10 million at December 29, 2023, $9 million was included in Accrued expenses and $1 million was included in Other non-current liabilities in the Company’s Condensed Consolidated Balance Sheets. Of the accrued restructuring balance of $119 million at June 30, 2023, $117 million was included in Accrued expenses and $2 million was included in Other non-current liabilities in the Company’s Condensed Consolidated Balance Sheets. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Dec. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company is exposed to foreign currency exchange rate, interest rate, and to a lesser extent, equity market risks relating to its ongoing business operations. From time to time, the Company enters into cash flow hedges in the form of foreign currency forward exchange contracts in order to manage the foreign currency exchange rate risk on forecasted expenses and investments denominated in foreign currencies. The Company entered into certain interest rate swap agreements to convert the variable interest rate on its Term Loans to fixed interest rates. The objective of the interest rate swap agreements was to eliminate the variability of interest payment cash flows associated with the variable interest rate under the Term Loans. The Company designated the interest rate swaps as cash flow hedges. On September 13, 2023, the Company terminated its then existing interest rate swap agreements as a result of the repayment of Term Loans A1, A2 and A3 and received cash proceeds of $25 million from the counterparty. The cash proceeds are reported within Net cash provided by operating activities in the Company’s Condensed Consolidated Statements of Cash Flows during the six months ended December 29, 2023. The Company discontinued the related hedge accounting prospectively and realized a net gain of $104 million in Net gain recognized from termination of interest rate swap in the Condensed Consolidated Statements of Operations during the six months ended December 29, 2023. Additionally, $6 million of the gains were amortized to Interest expense prior to the termination of interest rate swap in the Company’s Condensed Consolidated Statements of Operations. Refer to “ Note 3. Debt ” for more details. As of December 29, 2023, the Company does not have any interest rate swap contracts. The Company’s accounting policies for these instruments are based on whether the instruments are classified as designated or non-designated hedging instruments. The Company records all derivatives on its Condensed Consolidated Balance Sheets at fair value. The changes in the fair value of highly effective designated cash flow hedges are recorded in AOCI until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments or are not assessed to be highly effective are adjusted to fair value through earnings. The net unrealized gain on cash flow hedges was $4 million as of December 29, 2023, all of which is expected to be reclassified to earnings within twelve months. The net unrealized gain on cash flow hedges was $12 million as of June 30, 2023. The Company de-designates its cash flow hedges when the forecasted hedged transactions affect earnings or it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in AOCI on the Company’s Condensed Consolidated Balance Sheets are reclassified into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings. The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and six months ended December 29, 2023: Amount of Gain/(Loss) Recognized in Income on Derivatives (Dollars in millions) Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivatives For the Three Months For the Six Months Foreign currency forward exchange contracts Other, net $ 6 $ — Total return swap Operating expenses (13) (16) (Dollars in millions) Derivatives Designated as Hedging Instruments Amount of Gain/(Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing (1) Amount of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) For the Three Months For the Six Months For the Three Months For the Six Months For the Three Months For the Six Months Foreign currency forward exchange contracts $ 13 $ 6 Cost of revenue $ (5) $ (6) Other, net $ 1 $ 1 Interest rate swap — (15) Interest expense — 11 Net gain recognized from termination of interest rate swap — 104 (1) The net gain recognized into earnings as a result of the discontinuance of interest rate swap during the six months ended December 29, 2023. The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and six months ended December 30, 2022 : (Dollars in millions) Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivatives Amount of Gain/(Loss) Recognized in Income on Derivatives For the Three Months For the Six Months Foreign currency forward exchange contracts Other, net $ 4 $ (6) Total return swap Operating expenses — (8) (Dollars in millions) Derivatives Designated as Hedging Instruments Amount of Gain/(Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) For the Three Months For the Six Months For the Three Months For the Six Months For the Three Months For the Six Months Foreign currency forward exchange contracts $ 19 $ (1) Cost of revenue $ (12) $ (19) Other, net $ — $ (1) Interest rate swap — 52 Interest expense 6 8 Interest expense — — Other derivatives not designated as hedging instruments consist of foreign currency forward exchange contracts that the Company uses to hedge the foreign currency exposure on forecasted expenditures denominated in currencies other than the U.S. dollar. The Company also enters into foreign currency forward contracts with contractual maturities of less than one month, which are designed to mitigate the effect of changes in foreign exchange rates on monetary assets and liabilities. The Company recognizes gains and losses on these contracts, as well as the related costs, in Other, net on its Condensed Consolidated Statements of Operations. The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of December 29, 2023 and June 30, 2023. All of the foreign currency forward exchange contracts mature within 12 months: As of December 29, 2023 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Singapore Dollar $ 126 $ 102 Thai Baht 95 16 Chinese Renminbi 40 19 British Pound Sterling 38 7 Total $ 299 $ 144 As of June 30, 2023 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Singapore Dollar $ 195 $ 161 Thai Baht 129 16 Chinese Renminbi 64 12 British Pound Sterling 57 8 Total $ 445 $ 197 The Company is subject to equity market risks due to changes in the fair value of the notional investments selected by its employees as part of its non-qualified deferred compensation plan: the Seagate Deferred Compensation Plan (the “SDCP”). In fiscal year 2014, the Company entered into a Total Return Swap (“TRS”) in order to manage the equity market risks associated with the SDCP’s liabilities. The Company pays a floating rate, based on SOFR plus an interest rate spread, on the notional amount of the TRS. The TRS is designed to substantially offset changes in the SDCP’s liabilities due to changes in the value of the investment options made by employees. As of December 29, 2023, the notional investments underlying the TRS amounted to $107 million. This contract, which settles monthly and matures in January 2024, effectively mitigates counterparty risk. Currently, the Company is renegotiating the contract's maturity terms without altering other aspects. The Company did not designate the TRS as a hedge. Rather, the Company records all changes in the fair value of the TRS to earnings to offset the market value changes of the SDCP’s liabilities. The following tables show the Company’s derivative instruments measured at gross fair value as reflected in the Condensed Consolidated Balance Sheets as of December 29, 2023 and June 30, 2023: As of December 29, 2023 Derivative Assets Derivative Liabilities (Dollars in millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Other current assets $ 5 Accrued expenses $ (1) Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets 1 Accrued expenses — Total derivatives $ 6 $ (1) As of June 30, 2023 Derivative Assets Derivative Liabilities (Dollars in millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Other current assets $ 2 Accrued expenses $ (10) Interest rate swap Other current assets 20 Accrued expenses — Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets — Accrued expenses (1) Total return swap Other current assets 1 Accrued expenses — Total derivatives $ 23 $ (11) |
Fair Value
Fair Value | 6 Months Ended |
Dec. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Measurement of Fair Value Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. Fair Value Hierarchy A fair value hierarchy is based on whether the market participant assumptions used in determining fair value are obtained from independent sources (observable inputs) or reflect the Company’s own assumptions of market participant valuation (unobservable inputs). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are: Level 1 — Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 — Quoted prices for identical assets and liabilities in markets that are inactive; quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; or Level 3 — Prices or valuations that require inputs that are both unobservable and significant to the fair value measurement. The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, the Company’s or the counterparty’s non-performance risk is considered in determining the fair values of liabilities and assets, respectively. Items Measured at Fair Value on a Recurring Basis The following tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item, that are measured at fair value on a recurring basis, excluding accrued interest components, as of: December 29, 2023 June 30, 2023 Fair Value Measurements at Reporting Date Using Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Money market funds $ 89 $ — $ — $ 89 $ 72 $ — $ — $ 72 Total cash equivalents 89 — — 89 72 — — 72 Restricted cash and investments: Money market funds 1 — — 1 1 — — 1 Time deposits and certificates of deposit — 1 — 1 — 1 — 1 Other debt securities — — 15 15 — — 16 16 Derivative assets — 6 — 6 — 23 — 23 Total assets $ 90 $ 7 $ 15 $ 112 $ 73 $ 24 $ 16 $ 113 Liabilities: Derivative liabilities $ — $ 1 $ — $ 1 $ — $ 11 $ — $ 11 Total liabilities $ — $ 1 $ — $ 1 $ — $ 11 $ — $ 11 December 29, 2023 June 30, 2023 Fair Value Measurements at Reporting Date Using Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Cash and cash equivalents $ 89 $ — $ — $ 89 $ 72 $ — $ — $ 72 Other current assets 1 7 — 8 1 24 — 25 Other assets, net — — 15 15 — — 16 16 Total assets $ 90 $ 7 $ 15 $ 112 $ 73 $ 24 $ 16 $ 113 Liabilities: Accrued expenses $ — $ 1 $ — $ 1 $ — $ 11 $ — $ 11 Total liabilities $ — $ 1 $ — $ 1 $ — $ 11 $ — $ 11 The Company classifies items in Level 1 if the financial assets consist of securities for which quoted prices are available in an active market. The Company classifies items in Level 2 if the financial asset or liability is valued using observable inputs. The Company uses observable inputs including quoted prices in active markets for similar assets or liabilities. Level 2 assets include: agency bonds, corporate bonds, commercial paper, municipal bonds, U.S. Treasuries, time deposits and certificates of deposit. These debt investments are priced using observable inputs and valuation models which vary by asset class. The Company uses a pricing service to assist in determining the fair value of all of its cash equivalents. For the cash equivalents in the Company’s portfolio, multiple pricing sources are generally available. The pricing service uses inputs from multiple industry-standard data providers or other third-party sources and various methodologies, such as weighting and models, to determine the appropriate price at the measurement date. The Company corroborates the prices obtained from the pricing service against other independent sources and, as of December 29, 2023, has not found it necessary to make any adjustments to the prices obtained. The Company’s derivative financial instruments are also classified within Level 2. The Company’s derivative financial instruments consist of foreign currency forward exchange contracts, interest rate swaps and the TRS. The Company recognizes derivative financial instruments in its Condensed Consolidated Financial Statements at fair value. The Company determines the fair value of these instruments by considering the estimated amount it would pay or receive to terminate these agreements at the reporting date. Items Measured at Fair Value on a Non-Recurring Basis From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives, which are accounted for either under the equity method or the measurement alternative. Investments under the measurement alternative are recorded at cost, less impairment and adjusted for qualifying observable price changes on a prospective basis. If measured at fair value in the Condensed Consolidated Balance Sheets, these investments would generally be classified in Level 3 of the fair value hierarchy. For the investments that are accounted for under the equity method, the Company recorded a net loss of $29 million for the three and six months ended December 29, 2023, which included $25 million related to downward adjustments to write down the carrying amount of certain investments to their fair value. The Company recorded an immaterial gain and a net loss of $3 million for the three and six months ended December 30, 2022, respectively. The adjusted carrying value of the investments accounted for under the equity method amounted to $26 million and $55 million as of December 29, 2023 and June 30, 2023, respectively. For the investments that are accounted for under the measurement alternative, the Company recorded a net loss of $14 million for the three and six months ended December 29, 2023, related to downward adjustments to write down the carrying amount of certain investments to their fair value. The Company recorded an immaterial loss and a net gain of $3 million for the three and six months ended December 30, 2022, respectively, related to downward and upward adjustments due to observable price changes. As of December 29, 2023 and June 30, 2023, the carrying value of the Company’s strategic investments under the measurement alternative was $75 million and $88 million, respectively. Other Fair Value Disclosures The Company’s debt is carried at amortized cost. The estimated fair value of the Company’s debt is derived using the closing price of the same debt instruments as of the date of valuation, which takes into account the yield curve, interest rates and other observable inputs. Accordingly, these fair value measurements are categorized as Level 2. The following table presents the fair value and amortized cost of the Company’s debt in order of maturity: December 29, 2023 June 30, 2023 (Dollars in millions) Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 4.75% Senior Notes due January 2025 $ 479 $ 476 $ 479 $ 472 4.875% Senior Notes due June 2027 504 496 504 484 3.50% Senior Notes due June 2028 1,500 1,812 — — 4.091% Senior Notes due June 2029 469 457 465 436 3.125% Senior Notes due July 2029 163 136 163 126 8.25% Senior Notes due December 2029 500 539 500 522 4.125% Senior Notes due January 2031 275 247 275 227 3.375% Senior Notes due July 2031 72 57 72 53 8.50% Senior Notes due July 2031 500 545 500 524 9.625% Senior Notes due December 2032 750 859 750 830 5.75% Senior Notes due December 2034 489 470 489 438 SOFR Based Term Loan A1 due September 2025 — — 430 426 SOFR Based Term Loan A2 due July 2027 — — 430 420 SOFR Based Term Loan A3 due July 2027 — — 430 413 $ 5,701 $ 6,094 $ 5,487 $ 5,371 Less: unamortized debt issuance costs (32) — (36) — Debt, net of debt issuance costs $ 5,669 $ 6,094 $ 5,451 $ 5,371 Less: current portion of debt, net of debt issuance costs — — (63) (62) Long-term debt, less current portion, net of debt issuance costs $ 5,669 $ 6,094 $ 5,388 $ 5,309 |
Equity
Equity | 6 Months Ended |
Dec. 29, 2023 | |
Equity [Abstract] | |
Equity | it Share Capital The Company’ s authorized share capital is $13,500 and consists of 1,250,000,000 ordinary shares, par value $0.00001, of which 209,504,857 shares were outstanding as of December 29, 2023, and 100,000,000 preferred shares, par value $0.00001, of which none were issued or outstanding as of December 29, 2023. Ordinary shares - Holders of ordinary shares are entitled to receive dividends when and as declared by the Company’s board of directors (the “Board of Directors”). Upon any liquidation, dissolution, or winding up of the Company, after required payments are made to holders of preferred shares, any remaining assets of the Company will be distributed ratably to holders of the preferred and ordinary shares. Holders of shares are entitled to one vote per share on all matters upon which the ordinary shares are entitled to vote, including the election of directors. Preferred shares - The Company may issue preferred shares in one or more series, up to the authorized amount, without shareholder approval. The Board of Directors is authorized to establish from time to time the number of shares to be included in each series, and to fix the rights, preferences and privileges of the shares of each wholly unissued series and any of its qualifications, limitations or restrictions. The Board of Directors can also increase or decrease the number of shares of a series, but not below the number of shares of that series then outstanding, without any further vote or action by the shareholders. The Board of Directors may authorize the issuance of preferred shares with voting or conversion rights that could harm the voting power or other rights of the holders of the ordinary shares. The issuance of preferred shares, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of the Company and might harm the market price of its ordinary shares and the voting and other rights of the holders of ordinary shares. Repurchases of Equity Securities All repurchases are effected as redemptions in accordance with the Company’s Constitution. As of December 29, 2023 , $1.9 billion remained available for repurchase under the existing repurchase authorization limit approved by the Board of Directors. The following table sets f orth information with respect to repurchases of the Company’s ordinary shares during the six months ended December 29, 2023: (In millions) Number of Shares Repurchased Dollar Value of Shares Repurchased Tax withholding related to vesting of equity awards — $ 28 Total — $ 28 |
Revenue
Revenue | 6 Months Ended |
Dec. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following table provides information about disaggregated revenue by sales channel and geographical region for the Company’s single reportable segment: For the Three Months Ended For the Six Months Ended (Dollars in millions) December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Revenues by Channel OEMs $ 1,140 $ 1,365 $ 2,172 $ 2,910 Distributors 218 297 484 596 Retailers 197 225 353 416 Total $ 1,555 $ 1,887 $ 3,009 $ 3,922 Revenues by Geography (1) Asia Pacific $ 777 $ 760 $ 1,588 $ 1,561 Americas 544 853 999 1,789 EMEA 234 274 422 572 Total $ 1,555 $ 1,887 $ 3,009 $ 3,922 _____________________________ (1) Revenue is attributed to geography based on bill from locations. |
Guarantees
Guarantees | 6 Months Ended |
Dec. 29, 2023 | |
Guarantees [Abstract] | |
Guarantees | Guarantees Indemnification Obligations The Company from time to time enters into agreements with customers, suppliers, partners and others in the ordinary course of business that provide indemnification for certain matters including, but not limited to, intellectual property infringement claims, environmental claims and breach of agreement claims. The nature of the Company’s indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay. Historically, the Company has not made any significant indemnification payments under such agreements an d no amount has been accrued in the Company’s Condensed Consolidated Financial Statements with respect to these indemnificatio n obligations. Product Warranty The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally warrants its products for a period of 1 to 5 years. The Company uses estimated repair or replacement costs and uses statistical modeling to estimate product warranty return rates in order to determine its warranty obligation. Changes in the Company’s product warranty liability during the six months ended December 29, 2023 and December 30, 2022 were as follows: For the Six Months Ended (Dollars in millions) December 29, 2023 December 30, 2022 Balance, beginning of period $ 168 $ 148 Warranties issued 27 27 Repairs and replacements (40) (48) Changes in liability for pre-existing warranties, including expirations 12 26 Balance, end of period $ 167 $ 153 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 29, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Loss Per Share Basic (loss) earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period and the number of additional shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options, unvested restricted share units and performance-based share units and shares to be purchased under the Employee Stock Purchase Plan. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in fair market value of the Company’s share price can result in a greater dilutive effect from potentially dilutive securities. The following table sets forth the computation of basic and diluted net loss per share attributable to the shareholders of the Company: For the Three Months Ended For the Six Months Ended (In millions, except per share data) December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Numerator: Net loss $ (19) $ (33) $ (203) $ (4) Number of shares used in per share calculations: Total shares for purposes of calculating basic net loss per share 209 206 209 207 Weighted-average effect of dilutive securities: Employee equity award plans — — — — Total shares for purposes of calculating diluted net loss per share 209 206 209 207 Net loss per share: Basic $ (0.09) $ (0.16) $ (0.97) $ (0.02) Diluted $ (0.09) $ (0.16) $ (0.97) $ (0.02) |
Legal, Environmental and Other
Legal, Environmental and Other Contingencies | 6 Months Ended |
Dec. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal, Environmental and Other Contingencies | Legal, Environmental and Other Contingencies The Company assesses the probability of an unfavorable outcome of all its material litigation, claims or assessments to determine whether a liability had been incurred and whether it is probable that one or more future events will occur confirming the fact of the loss. In the event that an unfavorable outcome is determined to be probable and the amount of the loss can be reasonably estimated, the Company establishes an accrual for the litigation, claim or assessment. In addition, in the event an unfavorable outcome is determined to be less than probable, but reasonably possible, the Company will disclose an estimate of the possible loss or range of such loss; however, when a reasonable estimate cannot be made, the Company will provide disclosure to that effect. Litigation is inherently uncertain and may result in adverse rulings or decisions. Additionally, the Company may enter into settlements or be subject to judgments that may, individually or in the aggregate, have a material adverse effect on its results of operations. Accordingly, actual results could differ materially. Litigation Lambeth Magnetic Structures LLC v. Seagate Technology (US) Holdings, Inc., et al . On April 29, 2016, Lambeth Magnetic Structures LLC filed a complaint against Seagate Technology (US) Holdings, Inc. and Seagate Technology LLC in the U.S. District Court for the Western District of Pennsylvania, alleging infringement of U.S. Patent No. 7,128,988, “Magnetic Material Structures, Devices and Methods,” seeking damages as well as additional relief. The district court entered judgement in favor of Seagate on April 19, 2022, following a jury trial. The parties filed post-trial motions with the district court, which were denied. An appeal to the Federal Circuit is pending. The Company believes the asserted claims are without merit and intends to vigorously defend this case. Seagate Technology LLC, et al. v. Headway Technologies, Inc., et al . On February 18, 2020, Seagate Technology LLC, Seagate Technology (Thailand) Ltd., Seagate Singapore International Headquarters Pte. Ltd. and Seagate Technology International (collectively, the “Seagate Entities”) filed a complaint in the U.S. District Court for the Northern District of California against defendant suppliers of HDD suspension assemblies. Defendants include NHK Spring Co. Ltd., TDK Corporation, Hutchinson Technology Inc. and several of their subsidiaries and affiliates. The complaint includes federal and state antitrust law claims, as well as a breach of contract claim. The complaint alleges that defendants and their co-conspirators knowingly conspired for more than twelve years not to compete in the supply of suspension assemblies; that defendant misused confidential information that the Seagate Entities had provided pursuant to nondisclosure agreements, in breach of their contractual obligations; and that the Seagate Entities paid artificially high prices on purchases of suspension assemblies. The Seagate Entities seek to recover the overcharges they paid for suspension assemblies and additional relief permitted by law. On March 22, 2022, the Seagate Entities dismissed with prejudice all claims being asserted against Defendants TDK Corporation, Hutchinson Technology Inc. and their subsidiaries and affiliates (collectively “TDK”) relating to the antitrust law claims, the breach of contract claim and other matters described in the complaint. On April 8, 2022, the court entered an Amended Stipulation and Order of Dismissal with Prejudice to dismiss all claims against TDK. On August 2, 2022, NHK Spring Co. Ltd. filed a motion for Partial Summary Judgment Regarding Foreign Commerce and on October 14, 2022, the Seagate Entities filed their corresponding opposition. On May 15, 2023, the court issued a ruling that Seagate’s antitrust claims can proceed as to suspension assemblies that enter the United States but not as to suspension assembles that do not enter the United States. On July 28, 2023, the judge initiated a reconsideration of this ruling and requested further briefing. On November 17, 2023, the Court granted NHK’s Motion for Partial Summary Judgment regarding the Foreign Trade Antitrust Improvements Act (“FTAIA”) and denied Seagate’s Motion for Leave to Amend the Complaint. Seagate plans to appeal the Court’s ruling and filed a motion on December 15, 2023 for the Court to certify interlocutory review of its ruling. A trial date has not been set. In re Seagate Technology Holdings plc Securities Litigation. A putative class action lawsuit alleging violations of the federal securities laws, UA Local 38 Defined Contribution Pension Plan, et al. v. Seagate Technology Holdings PLC, et al., was filed on July 10, 2023, in the U.S. District Court for the Northern District of California against Seagate Technology Holdings plc, Dr. William D. Mosley, and Gianluca Romano. The complaint alleged that it was a securities class action on behalf of all purchasers of Seagate common stock between September 15, 2020 and October 25, 2022, inclusive, and asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b5-1. The complaint sought unspecified monetary damages and other relief. A second action, Public Employees’ Retirement System of Mississippi v. Seagate Technology Holdings plc, William David Mosley, and Gianluca Romano, was filed on July 26, 2023, asserting similar claims. The cases were consolidated on September 25, 2023. On October 19, 2023, plaintiffs filed an amended complaint asserting similar claims with a putative class period of September 14, 2020 through April 19, 2023. The Company, on behalf of all defendants, filed a motion to dismiss the amended complaint, which is currently pending before the court. T he Company believes that the asserted claims are without merit and intends to vigorously defend the case. Environmental Matters The Company’s operations are subject to U.S. and foreign laws and regulations relating to the protection of the environment, including those governing discharges of pollutants into the air and water, the management and disposal of hazardous substances and wastes and the cleanup of contaminated sites. Some of the Company’s operations require environmental permits and controls to prevent and reduce air and water pollution, and these permits are subject to modification, renewal and revocation by issuing authorities. The Company has established environmental management systems and continually updates its environmental policies and standard operating procedures for its operations worldwide. The Company believes that its operations are in material compliance with applicable environmental laws, regulations and permits. The Company budgets for operating and capital costs on an ongoing basis to comply with environmental laws. If additional or more stringent requirements are imposed on the Company in the future, it could incur additional operating costs and capital expenditures. Some environmental laws, such as the Comprehensive Environmental Response Compensation and Liability Act of 1980 (as amended, the “Superfund” law) and its state equivalents, can impose liability for the cost of cleanup of contaminated sites upon any of the current or former site owners or operators or upon parties who sent waste to these sites, regardless of whether the owner or operator owned the site at the time of the release of hazardous substances or the lawfulness of the original disposal activity. The Company has been identified as a responsible or potentially responsible party at several sites. At each of these sites, the Company has an assigned portion of the financial liability based on the type and amount of hazardous substances disposed of by each party at the site and the number of financially viable parties. The Company has fulfilled its responsibilities at some of these sites and remains involved in only a few at this time. While the Company’s ultimate costs in connection with these sites is difficult to predict with complete accuracy, based on its current estimates of cleanup costs and its expected allocation of these costs, the Company does not expect costs in connection with these sites to be material. The Company may be subject to various state, federal and international laws and regulations governing the environment, including those restricting the presence of certain substances in electronic products. For example, the European Union (“EU”) enacted the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (2011/65/EU), which prohibits the use of certain substances, including lead, in certain products, including disk drives and server storage products, put on the market after July 1, 2006. Similar legislation has been or may be enacted in other jurisdictions, including in the United States, Canada, Mexico, Taiwan, China, Japan and others. The EU REACH Directive (Registration, Evaluation, Authorization, and Restriction of Chemicals, EC 1907/2006) also restricts substances of very high concern in products. If the Company or its suppliers fail to comply with the substance restrictions, recycle requirements or other environmental requirements as they are enacted worldwide, it could have a materially adverse effect on the Company’s business. BIS Settlement On April 18, 2023, the Company’s subsidiaries Seagate Technology LLC and Seagate Singapore International Headquarters Pte. Ltd (collectively, “Seagate”), entered into a settlement agreement (the “Settlement Agreement”) with the U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) that resolves BIS’ allegations regarding Seagate’s sales of hard disk drives to Huawei between August 17, 2020 and September 29, 2021. Under the terms of the Settlement Agreement, Seagate has agreed to pay $300 million to BIS in quarterly installments of $15 million over the course of five years beginning October 31, 2023. Seagate has also agreed to complete three audits of its compliance with the license requirements of Section 734.9 of the U.S. Export Administration Regulations (“EAR”), including one audit by an unaffiliated third-party consultant chosen by Seagate with expertise in U.S. export control laws and two internal audits. The Settlement Agreement also includes a denial order that is suspended and will be waived five years after the date of the order issued under the Settlement Agreement, provided that Seagate has made full and timely payments under the Settlement Agreement and timely completed the audit requirements. While Seagate is in compliance with and upon successful compliance in full with the terms of the Settlement Agreement, BIS has agreed it will not initiate any further administrative proceedings against Seagate in connection with any violation of the EAR arising out of the transactions detailed in the Settlement Agreement. While Seagate believed that it complied with all relevant export control laws at the time it made the hard disk drive sales at issue, Seagate determined that engaging with BIS and settling this matter was in the best interest of the Company, its customers, and its shareholders. In determining to engage with BIS and resolve this matter through a settlement agreement, the Company considered a number of factors, including the risks and cost of protracted litigation involving the U.S. government, and the size of the potential penalty and the Company’s desire to focus on current business challenges and long-term business strategy. The Settlement Agreement includes a finding that the Company incorrectly interpreted the regulation at issue to require evaluation of only the last stage of Seagate’s hard disk drive manufacturing process rather than the entire process. As part of this settlement, Seagate has agreed not to contest BIS’ determination that the sales in question did not comply with the U.S. EAR. The Company accrued a charge of $300 million during fiscal year 2023, of which $60 million and $225 million were included in Accrued expense and Other non-current liabilities, respectively, on its Condensed Consolidated Balance Sheets as of December 29, 2023. During the December 2023 quarter, $15 million was paid and reported as an outflow from operating activities on its Condensed Consolidated Statements of Cash Flows. Other Matters From time to time, arising in the normal course of business, the Company is involved in a number of other judicial, regulatory or administrative proceedings and investigations incidental to its business, and the Company expects to be involved in such proceedings and investigations arising in the normal course of its business in the future. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on its financial position or results of operations. |
Commitments
Commitments | 6 Months Ended |
Dec. 29, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Commitments Unconditional Long-Term Purchase Obligations. As of December 29, 2023, the Company had unconditional long-term purchase obligations of approxim ately $2.6 billion, primarily related to purchases of inventory components. The Company expects the commitment to total $146 million, $218 million, $1.5 billion and $744 million for fiscal years 2025, 2026, 2027 and 2028, respectively . |
Subsequent event
Subsequent event | 6 Months Ended |
Dec. 29, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declared On January 24, 2024, the Board of Directors of the Company declared a quarterly cash dividend of $0.70 per share, which will be payable on April 4, 2024 to shareholders of record as of the close of business on March 21, 2024. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 29, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation, Policy | The Company’s Consolidated Financial Statements for the fiscal year ended June 30, 2023 are included in its Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission (“SEC”) on August 4, 2023. The Company believes that the disclosures included in these unaudited Condensed Consolidated Financial Statements, when read in conjunction with its Consolidated Financial Statements as of June 30, 2023, and the notes thereto, are adequate to make the information presented not misleading. The results of operations for the three and six months ended December 29, 2023 are not necessarily indicative of the results to be expected for any subsequent interim period or for the Company’s fiscal year ending June 28, 2024. |
Fiscal Period, Policy | The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. In fiscal years with 53 weeks, the first quarter consists of 14 weeks and the remaining quarters consist of 13 weeks each. Both the three and six months ended December 29, 2023 and December 30, 2022 consisted of 13 and 26 weeks, respectively. Fiscal years 2024 and 2023 both comprise 52 weeks and end on June 28, 2024 and June 30, 2023, respectively. The fiscal quarters ended December 29, 2023, September 29, 2023 and December 30, 2022, are also referred to herein as the “December 2023 quarter”, the “September 2023 quarter” and the “December 2022 quarter”, respectively. |
Property, Plant and Equipment, Policy | Other Long-Lived Assets In accordance with its policy, the Company reviews the estimated useful lives of its fixed assets on an ongoing basis. Effective from the first quarter of fiscal year 2024, the Company changed the useful lives of certain manufacturing equipment from a range of three three or three and six months ended December 29, 2023, respectively. Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (FASB) issued ASU 2022-04 (ASC Subtopic 405-50), Disclosure of Supplier Finance Program Obligations . This ASU requires disclosure of key terms of the outstanding supplier finance programs and a roll forward of the related obligations. The Company adopted this guidance in the quarter ended September 29, 2023. The adoption of this ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements. |
Reclassification, Comparability Adjustment | Other Long-Lived Assets In accordance with its policy, the Company reviews the estimated useful lives of its fixed assets on an ongoing basis. Effective from the first quarter of fiscal year 2024, the Company changed the useful lives of certain manufacturing equipment from a range of three three or three and six months ended December 29, 2023, respectively. Recently Adopted Accounting Pronouncements In September 2022, the Financial Accounting Standards Board (FASB) issued ASU 2022-04 (ASC Subtopic 405-50), Disclosure of Supplier Finance Program Obligations . This ASU requires disclosure of key terms of the outstanding supplier finance programs and a roll forward of the related obligations. The Company adopted this guidance in the quarter ended September 29, 2023. The adoption of this ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements. |
Recently Issued Accounting Pronouncements, Policy | Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07 (ASC Topic 280), Improvements to Reportable Segment Disclosures . This ASU improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The Company is required to adopt this guidance for its annual reporting in fiscal year 2025 and for interim period reporting beginning the first quarter of fiscal year 2026 on a retrospective basis. Early adoption is permitted. This standard is expected to impact the Company’s disclosures and will not have impact on its Condensed Consolidated Financial Statements. In December 2023, the FASB issued ASU 2023-09 (ASC Topic 740), Improvements to Income Tax Disclosures . This ASU requires disaggregated income tax disclosures on the rate reconciliation and income taxes paid. The Company is required to adopt this guidance in the first quarter of the fiscal year 2026. Early adoption is permitted. This standard is expected to impact the Company’s disclosures and will not have impact on its Condensed Consolidated Financial Statements. |
Fair Value Measurement, Policy | Measurement of Fair Value Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. Fair Value Hierarchy A fair value hierarchy is based on whether the market participant assumptions used in determining fair value are obtained from independent sources (observable inputs) or reflect the Company’s own assumptions of market participant valuation (unobservable inputs). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are: Level 1 — Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 — Quoted prices for identical assets and liabilities in markets that are inactive; quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; or Level 3 — Prices or valuations that require inputs that are both unobservable and significant to the fair value measurement. The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, the Company’s or the counterparty’s non-performance risk is considered in determining the fair values of liabilities and assets, respectively. |
Fair Value of Financial Instruments, Policy | Items Measured at Fair Value on a Non-Recurring Basis From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives, which are accounted for either under the equity method or the measurement alternative. Investments under the measurement alternative are recorded at cost, less impairment and adjusted for qualifying observable price changes on a prospective basis. If measured at fair value in the Condensed Consolidated Balance Sheets, these investments would generally be classified in Level 3 of the fair value hierarchy. For the investments that are accounted for under the equity method, the Company recorded a net loss of $29 million for the three and six months ended December 29, 2023, which included $25 million related to downward adjustments to write down the carrying amount of certain investments to their fair value. The Company recorded an immaterial gain and a net loss of $3 million for the three and six months ended December 30, 2022, respectively. The adjusted carrying value of the investments accounted for under the equity method amounted to $26 million and $55 million as of December 29, 2023 and June 30, 2023, respectively. For the investments that are accounted for under the measurement alternative, the Company recorded a net loss of $14 million for the three and six months ended December 29, 2023, related to downward adjustments to write down the carrying amount of certain investments to their fair value. The Company recorded an immaterial loss and a net gain of $3 million for the three and six months ended December 30, 2022, respectively, related to downward and upward adjustments due to observable price changes. As of December 29, 2023 and June 30, 2023, the carrying value of the Company’s strategic investments under the measurement alternative was $75 million and $88 million, respectively. |
Standard Product Warranty, Policy | Product Warranty |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 6 Months Ended |
Dec. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments, Policy | Items Measured at Fair Value on a Non-Recurring Basis From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives, which are accounted for either under the equity method or the measurement alternative. Investments under the measurement alternative are recorded at cost, less impairment and adjusted for qualifying observable price changes on a prospective basis. If measured at fair value in the Condensed Consolidated Balance Sheets, these investments would generally be classified in Level 3 of the fair value hierarchy. For the investments that are accounted for under the equity method, the Company recorded a net loss of $29 million for the three and six months ended December 29, 2023, which included $25 million related to downward adjustments to write down the carrying amount of certain investments to their fair value. The Company recorded an immaterial gain and a net loss of $3 million for the three and six months ended December 30, 2022, respectively. The adjusted carrying value of the investments accounted for under the equity method amounted to $26 million and $55 million as of December 29, 2023 and June 30, 2023, respectively. For the investments that are accounted for under the measurement alternative, the Company recorded a net loss of $14 million for the three and six months ended December 29, 2023, related to downward adjustments to write down the carrying amount of certain investments to their fair value. The Company recorded an immaterial loss and a net gain of $3 million for the three and six months ended December 30, 2022, respectively, related to downward and upward adjustments due to observable price changes. As of December 29, 2023 and June 30, 2023, the carrying value of the Company’s strategic investments under the measurement alternative was $75 million and $88 million, respectively. |
Fair Value Measurement, Policy | Measurement of Fair Value Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. Fair Value Hierarchy A fair value hierarchy is based on whether the market participant assumptions used in determining fair value are obtained from independent sources (observable inputs) or reflect the Company’s own assumptions of market participant valuation (unobservable inputs). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are: Level 1 — Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 — Quoted prices for identical assets and liabilities in markets that are inactive; quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; or Level 3 — Prices or valuations that require inputs that are both unobservable and significant to the fair value measurement. The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, the Company’s or the counterparty’s non-performance risk is considered in determining the fair values of liabilities and assets, respectively. |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Summary of Debt Securities, Available-for-sale | The following table summarizes, by major type, the fair value and amortized cost of the Company’s available-for-sale debt investments as of December 29, 2023 and June 30, 2023: December 29, 2023 June 30, 2023 (Dollars in millions) Amortized Cost Unrealized Gain/(Loss) Fair Value Amortized Cost Unrealized Gain/(Loss) Fair Value Available-for-sale debt securities: Money market funds $ 90 $ — $ 90 $ 73 $ — $ 73 Time deposits and certificates of deposit 1 — 1 1 — 1 Other debt securities 15 — 15 16 — 16 Total $ 106 $ — $ 106 $ 90 $ — $ 90 Included in Cash and cash equivalents $ 89 $ 72 Included in Other current assets 2 2 Included in Other assets, net 15 16 Total $ 106 $ 90 |
Fair value and amortized cost of available-for-sale securities by contractual maturity | The fair value and amortized cost of the Company’s investments classified as available-for-sale debt securities as of December 29, 2023, by remaining contractual maturity were as follows: (Dollars in millions) Amortized Cost Fair Value Due in less than 1 year $ 91 $ 91 Due in 1 to 5 years 15 15 Total $ 106 $ 106 |
Cash, cash equivalents, and restricted cash | The following table provides a summary of cash, cash equivalents and restricted cash reported within the Company’s Condensed Consolidated Balance Sheets that reconciles to the corresponding amount in the Company’s Condensed Consolidated Statements of Cash Flows: (Dollars in millions) December 29, 2023 June 30, 2023 December 30, 2022 July 1, 2022 Cash and cash equivalents $ 787 $ 786 $ 770 $ 615 Restricted cash included in Other current assets 2 2 2 2 Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows $ 789 $ 788 $ 772 $ 617 |
Inventories | The details of the inventories were as follows: (Dollars in millions) December 29, 2023 June 30, 2023 Raw materials and components $ 214 $ 241 Work-in-process 627 682 Finished goods 212 217 Total inventories $ 1,053 $ 1,140 |
Schedule of Other Current Assets | The details of the other current assets were as follows: (Dollars in millions) December 29, 2023 June 30, 2023 Vendor receivables $ 122 $ 167 Other current assets 195 191 Total $ 317 $ 358 |
Property, Equipment and Leasehold Improvements, net | The components of property, equipment and leasehold improvements, net, were as follows: (Dollars in millions) December 29, 2023 June 30, 2023 Property, equipment and leasehold improvements $ 10,270 $ 10,267 Accumulated depreciation and amortization (8,628) (8,561) Property, equipment and leasehold improvements, net $ 1,642 $ 1,706 |
Accrued expenses | The details of the accrued expenses were as follows: (Dollars in millions) December 29, 2023 June 30, 2023 Dividends payable $ 147 $ 145 Other accrued expenses 596 603 Total $ 743 $ 748 |
Schedule of accumulated other comprehensive income (loss) | The components of AOCI, net of tax, were as follows: (Dollars in millions) Unrealized Gains/(Losses) on Cash Flow Hedges Unrealized Gains/(Losses) on Post-Retirement Plans Foreign Currency Translation Adjustments Total Balance at June 30, 2023 $ 103 $ (4) $ (1) $ 98 Other comprehensive (loss) income before reclassifications (9) — 1 (8) Amounts reclassified from AOCI (87) — — (87) Other comprehensive (loss) income (96) — 1 (95) Balance at December 29, 2023 $ 7 $ (4) $ — $ 3 Balance at July 1, 2022 $ 51 $ (14) $ (1) $ 36 Other comprehensive income before reclassifications 51 — — 51 Amounts reclassified from AOCI 11 1 — 12 Other comprehensive income 62 1 — 63 Balance at December 30, 2022 $ 113 $ (13) $ (1) $ 99 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table provides details of the Company’s debt as of December 29, 2023 and June 30, 2023: (Dollars in millions) December 29, 2023 June 30, 2023 Unsecured Senior Notes (1) $1,000 issued on May 28, 2014 at 4.75% due January 1, 2025 (the “2025 Notes”) , interest payable semi-annually on January 1 and July 1 of each year. $ 479 $ 479 $700 issued on May 14, 2015 at 4.875% due June 1, 2027 (the “2027 Notes”) , interest payable semi-annually on June 1 and December 1 of each year. 504 504 $500 issued on June 18, 2020 at 4.091% due June 1, 2029 (the “June 2029 Notes”) , interest payable semi-annually on June 1 and December 1 of each year. 469 465 $500 issued on December 8, 2020 at 3.125% due July 15, 2029 (the “July 2029 Notes”) , interest payable semi-annually on January 15 and July 15 of each year. 163 163 $500 issued on May 30, 2023 at 8.25% due December 15, 2029 ( the “December 2029 Notes” ), interest payable semi-annually on June 15 and December 15 of each year. 500 500 $500 issued on June 10, 2020 at 4.125% due January 15, 2031 (the “January 2031 Notes”) , interest payable semi-annually on January 15 and July 15 of each year. 275 275 $500 issued on December 8, 2020 at 3.375% due July 15, 2031 (the “July 2031 Notes”) , interest payable semi-annually on January 15 and July 15 of each year. 72 72 $500 issued on May 30, 2023 at 8.50% due July 15, 2031 ( the “8.50% July 2031 Notes” ), interest payable semi-annually on January 15 and July 15 of each year. 500 500 $750 issued on November 30, 2022 at 9.625% due December 1, 2032 ( the “ 2032 Notes ”), interest payable semi-annually on June 1 and December 1 of each year. 750 750 $500 issued on December 2, 2014 at 5.75% due December 1, 2034 (the “2034 Notes”) , interest payable semi-annually on June 1 and December 1 of each year. 489 489 Exchangeable Senior Notes (1) $1,500 issued on September 13, 2023 at 3.50% due June 1, 2028 ( the “2028 Notes” ), interest payable semi-annually on March 1 and September 1 of each year. 1,500 — Term Loans $600 borrowed on October 14, 2021 at SOFR plus a variable margin ranging from 1.125% to 2.375%, ( the “Term Loan A1”) , repayable in quarterly installments beginning on December 31, 2022, with a final maturity date of September 16, 2025. — 430 $600 borrowed on October 14, 2021 at SOFR plus a variable margin ranging from 1.25% to 2.5%, ( the “Term Loan A2”) , repayable in quarterly installments beginning on December 31, 2022, with a final maturity date of July 30, 2027. — 430 $600 borrowed on August 18, 2022 at SOFR plus a variable margin ranging from 1.25% to 2.5%, (the “Term Loan A3”), repayable in quarterly installments beginning on December 31, 2022, with a final maturity date of July 30, 2027. — 430 5,701 5,487 Less: unamortized debt issuance costs (32) (36) Debt, net of debt issuance costs 5,669 5,451 Less: current portion of long-term debt — (63) Long-term debt, less current portion $ 5,669 $ 5,388 _____________________________ (1) All unsecured senior notes and exchangeable senior notes are issued by Seagate HDD Cayman (“Seagate HDD”), and the obligations under these notes are fully and unconditionally guaranteed, on a senior unsecured basis, by Seagate Technology Unlimited Company (“STUC”) and STX. |
Future principal payments on long-term debt | At December 29, 2023, future principal payments on long-term debt were as follows (in millions): Fiscal Year Principal Amount Remainder of 2024 $ — 2025 479 2026 — 2027 505 2028 1,500 Thereafter 3,245 Total $ 5,729 |
Restructuring and Exit Costs Re
Restructuring and Exit Costs Restructuring and Exit Costs (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table summarizes the Company’s restructuring activities under its active restructuring plans: April 2023 Plan October 2022 Plan Other Plans (Dollars in millions) Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Workforce Reduction Costs Facilities and Other Exit Costs Total Accrual balances at June 30, 2023 $ 108 $ — $ 1 $ 5 $ 1 $ 4 $ 119 Restructuring charges — — — — 3 — 3 Cash payments (104) — (1) (1) (4) — (110) Adjustments (1) — — (1) — — (2) Accrual balances at December 29, 2023 $ 3 $ — $ — $ 3 $ — $ 4 $ 10 Total costs incurred inception to date as of December 29, 2023 $ 144 $ 3 $ 104 $ 5 $ 66 $ 13 $ 335 Total expected charges to be incurred as of December 29, 2023 $ — $ — $ — $ — $ — $ — $ — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional value of outstanding foreign currency forward exchange contracts | The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of December 29, 2023 and June 30, 2023. All of the foreign currency forward exchange contracts mature within 12 months: As of December 29, 2023 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Singapore Dollar $ 126 $ 102 Thai Baht 95 16 Chinese Renminbi 40 19 British Pound Sterling 38 7 Total $ 299 $ 144 As of June 30, 2023 (Dollars in millions) Contracts Designated as Hedges Contracts Not Designated as Hedges Singapore Dollar $ 195 $ 161 Thai Baht 129 16 Chinese Renminbi 64 12 British Pound Sterling 57 8 Total $ 445 $ 197 |
Schedule of gross fair value of derivative instruments | The following tables show the Company’s derivative instruments measured at gross fair value as reflected in the Condensed Consolidated Balance Sheets as of December 29, 2023 and June 30, 2023: As of December 29, 2023 Derivative Assets Derivative Liabilities (Dollars in millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Other current assets $ 5 Accrued expenses $ (1) Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets 1 Accrued expenses — Total derivatives $ 6 $ (1) As of June 30, 2023 Derivative Assets Derivative Liabilities (Dollars in millions) Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives designated as hedging instruments: Foreign currency forward exchange contracts Other current assets $ 2 Accrued expenses $ (10) Interest rate swap Other current assets 20 Accrued expenses — Derivatives not designated as hedging instruments: Foreign currency forward exchange contracts Other current assets — Accrued expenses (1) Total return swap Other current assets 1 Accrued expenses — Total derivatives $ 23 $ (11) |
Schedule of the effect of derivative instruments on Other comprehensive income (loss) and the Consolidated Statement of Operations | The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and six months ended December 29, 2023: Amount of Gain/(Loss) Recognized in Income on Derivatives (Dollars in millions) Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivatives For the Three Months For the Six Months Foreign currency forward exchange contracts Other, net $ 6 $ — Total return swap Operating expenses (13) (16) (Dollars in millions) Derivatives Designated as Hedging Instruments Amount of Gain/(Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing (1) Amount of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) For the Three Months For the Six Months For the Three Months For the Six Months For the Three Months For the Six Months Foreign currency forward exchange contracts $ 13 $ 6 Cost of revenue $ (5) $ (6) Other, net $ 1 $ 1 Interest rate swap — (15) Interest expense — 11 Net gain recognized from termination of interest rate swap — 104 (1) The net gain recognized into earnings as a result of the discontinuance of interest rate swap during the six months ended December 29, 2023. The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and six months ended December 30, 2022 : (Dollars in millions) Derivatives Not Designated as Hedging Instruments Location of Gain/(Loss) Recognized in Income on Derivatives Amount of Gain/(Loss) Recognized in Income on Derivatives For the Three Months For the Six Months Foreign currency forward exchange contracts Other, net $ 4 $ (6) Total return swap Operating expenses — (8) (Dollars in millions) Derivatives Designated as Hedging Instruments Amount of Gain/(Loss) Recognized in OCI on Derivatives (Effective Portion) Location of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) For the Three Months For the Six Months For the Three Months For the Six Months For the Three Months For the Six Months Foreign currency forward exchange contracts $ 19 $ (1) Cost of revenue $ (12) $ (19) Other, net $ — $ (1) Interest rate swap — 52 Interest expense 6 8 Interest expense — — |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | December 29, 2023 June 30, 2023 Fair Value Measurements at Reporting Date Using Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Money market funds $ 89 $ — $ — $ 89 $ 72 $ — $ — $ 72 Total cash equivalents 89 — — 89 72 — — 72 Restricted cash and investments: Money market funds 1 — — 1 1 — — 1 Time deposits and certificates of deposit — 1 — 1 — 1 — 1 Other debt securities — — 15 15 — — 16 16 Derivative assets — 6 — 6 — 23 — 23 Total assets $ 90 $ 7 $ 15 $ 112 $ 73 $ 24 $ 16 $ 113 Liabilities: Derivative liabilities $ — $ 1 $ — $ 1 $ — $ 11 $ — $ 11 Total liabilities $ — $ 1 $ — $ 1 $ — $ 11 $ — $ 11 |
Schedule of Fair Value, by Balance Sheet Grouping, Measured on Recurring Basis | December 29, 2023 June 30, 2023 Fair Value Measurements at Reporting Date Using Fair Value Measurements at Reporting Date Using (Dollars in millions) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Balance Assets: Cash and cash equivalents $ 89 $ — $ — $ 89 $ 72 $ — $ — $ 72 Other current assets 1 7 — 8 1 24 — 25 Other assets, net — — 15 15 — — 16 16 Total assets $ 90 $ 7 $ 15 $ 112 $ 73 $ 24 $ 16 $ 113 Liabilities: Accrued expenses $ — $ 1 $ — $ 1 $ — $ 11 $ — $ 11 Total liabilities $ — $ 1 $ — $ 1 $ — $ 11 $ — $ 11 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Equity [Abstract] | |
Schedule of Share Repurchases | The following table sets f orth information with respect to repurchases of the Company’s ordinary shares during the six months ended December 29, 2023: (In millions) Number of Shares Repurchased Dollar Value of Shares Repurchased Tax withholding related to vesting of equity awards — $ 28 Total — $ 28 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides information about disaggregated revenue by sales channel and geographical region for the Company’s single reportable segment: For the Three Months Ended For the Six Months Ended (Dollars in millions) December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Revenues by Channel OEMs $ 1,140 $ 1,365 $ 2,172 $ 2,910 Distributors 218 297 484 596 Retailers 197 225 353 416 Total $ 1,555 $ 1,887 $ 3,009 $ 3,922 Revenues by Geography (1) Asia Pacific $ 777 $ 760 $ 1,588 $ 1,561 Americas 544 853 999 1,789 EMEA 234 274 422 572 Total $ 1,555 $ 1,887 $ 3,009 $ 3,922 _____________________________ (1) Revenue is attributed to geography based on bill from locations. |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Guarantees [Abstract] | |
Schedule of Product Warranty Liability | Changes in the Company’s product warranty liability during the six months ended December 29, 2023 and December 30, 2022 were as follows: For the Six Months Ended (Dollars in millions) December 29, 2023 December 30, 2022 Balance, beginning of period $ 168 $ 148 Warranties issued 27 27 Repairs and replacements (40) (48) Changes in liability for pre-existing warranties, including expirations 12 26 Balance, end of period $ 167 $ 153 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 29, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted net income (loss) per share | The following table sets forth the computation of basic and diluted net loss per share attributable to the shareholders of the Company: For the Three Months Ended For the Six Months Ended (In millions, except per share data) December 29, 2023 December 30, 2022 December 29, 2023 December 30, 2022 Numerator: Net loss $ (19) $ (33) $ (203) $ (4) Number of shares used in per share calculations: Total shares for purposes of calculating basic net loss per share 209 206 209 207 Weighted-average effect of dilutive securities: Employee equity award plans — — — — Total shares for purposes of calculating diluted net loss per share 209 206 209 207 Net loss per share: Basic $ (0.09) $ (0.16) $ (0.97) $ (0.02) Diluted $ (0.09) $ (0.16) $ (0.97) $ (0.02) |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Jun. 30, 2023 | |
Property, Plant and Equipment [Line Items] | |||||
Net loss | $ (19) | $ (33) | $ (203) | $ (4) | |
Diluted (in dollars per share) | $ (0.09) | $ (0.16) | $ (0.97) | $ (0.02) | |
Minimum | Manufacturing Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 3 years | 3 years | 3 years | ||
Maximum | Manufacturing Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 10 years | 10 years | 7 years |
Balance Sheet Information (Summ
Balance Sheet Information (Summary of fair value and amortized cost of investments, by major type) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Jun. 30, 2023 |
Available-for-sale debt securities: | ||
Amortized Cost | $ 106 | $ 90 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 106 | 90 |
Cash and cash equivalents [Member] | ||
Available-for-sale debt securities: | ||
Fair Value | 89 | 72 |
Other current assets [Member] | ||
Available-for-sale debt securities: | ||
Fair Value | 2 | 2 |
Other Assets [Member] | ||
Available-for-sale debt securities: | ||
Fair Value | 15 | 16 |
Money market funds [Member] | ||
Available-for-sale debt securities: | ||
Amortized Cost | 90 | 73 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 90 | 73 |
Time deposits and certificates of deposit [Member] | ||
Available-for-sale debt securities: | ||
Amortized Cost | 1 | 1 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 1 | 1 |
Other Debt Obligations [Member] | ||
Available-for-sale debt securities: | ||
Amortized Cost | 15 | 16 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | $ 15 | $ 16 |
Balance Sheet Information (Fair
Balance Sheet Information (Fair value and amortized cost of available-for-sale securities by contractual maturity) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Jun. 30, 2023 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 106 | $ 90 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 106 | 90 |
Amortized Cost | ||
Amortized cost, due in less than 1 year | 91 | |
Amortized cost, due in 1 to 5 years | 15 | |
Amortized Cost | 106 | |
Fair Value | ||
Fair value, due in less than 1 year | 91 | |
Fair value, due in 1 to 5 years | 15 | |
Fair Value | 106 | |
Money market funds [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 90 | 73 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 90 | 73 |
Time deposits and certificates of deposit [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 1 | 1 |
Unrealized Gain/(Loss) | 0 | 0 |
Fair Value | 1 | 1 |
Cash and cash equivalents [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value | 89 | 72 |
Other current assets [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value | 2 | 2 |
Other Assets [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Fair Value | $ 15 | $ 16 |
Balance Sheet Information Balan
Balance Sheet Information Balance Sheet Information (Available-for-Sale Debt Securities) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Jun. 30, 2023 | Dec. 30, 2022 | Jul. 01, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||||
Restricted cash included in Other current assets | $ 2 | $ 2 | $ 2 | $ 2 |
Balance Sheet Information (Cash
Balance Sheet Information (Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Jun. 30, 2023 | Dec. 30, 2022 | Jul. 01, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||||
Cash and cash equivalents | $ 787 | $ 786 | $ 770 | $ 615 |
Restricted cash included in Other current assets | 2 | 2 | 2 | 2 |
Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows | $ 789 | $ 788 | $ 772 | $ 617 |
Balance Sheet Information (Acco
Balance Sheet Information (Accounts Receivable) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Cash proceeds from sale of trade receivables | $ 290 | $ 211 | $ 582 | $ 411 |
Continuing Involvement with Continued to be Recognized Transferred Financial Assets, Amount Outstanding | $ 290 | $ 290 |
Balance Sheet Information (Inve
Balance Sheet Information (Inventories) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Jun. 30, 2023 |
Inventory, Net [Abstract] | ||
Raw materials and components | $ 214 | $ 241 |
Work-in-process | 627 | 682 |
Finished goods | 212 | 217 |
Total inventories | $ 1,053 | $ 1,140 |
Balance Sheet Information (Prop
Balance Sheet Information (Property, Equipment and Leasehold Improvements, net) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Jun. 30, 2023 | |
Property, Plant and Equipment [Line Items] | |||||
Property, equipment and leasehold improvements | $ 10,270 | $ 10,270 | $ 10,267 | ||
Accumulated depreciation and amortization | (8,628) | (8,628) | (8,561) | ||
Property, equipment and leasehold improvements, net | 1,642 | 1,642 | $ 1,706 | ||
Accelerated depreciation charges | $ 0 | $ 39 | $ 13 | $ 61 |
Balance Sheet Information (Accr
Balance Sheet Information (Accrued expenses) (Details) - USD ($) | Dec. 29, 2023 | Jun. 30, 2023 |
Payables and Accruals [Abstract] | ||
Dividends payable | $ 147,000,000 | $ 145,000,000 |
Other accrued expenses | 596,000,000 | 603,000,000 |
Total | $ 743,000,000 | $ 748,000,000 |
Balance Sheet Information (AOCI
Balance Sheet Information (AOCI) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ (1,702) | $ (351) | $ (1,199) | $ 109 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | 1 | 1 | 0 |
Total other comprehensive income (loss), net of tax | 18 | 26 | (95) | 63 |
Ending balance | (1,814) | (470) | (1,814) | (470) |
Accumulated Other Comprehensive Loss [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (15) | 73 | 98 | 36 |
Other comprehensive (loss) income before reclassifications | (8) | 51 | ||
Amounts reclassified from AOCI | (87) | 12 | ||
Total other comprehensive income (loss), net of tax | (95) | 63 | ||
Ending balance | 3 | 99 | 3 | 99 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 103 | 51 | ||
Losses (gains) reclassified into earnings | 5 | 6 | (87) | 11 |
Net change | (96) | 62 | ||
Ending balance | 7 | 113 | 7 | 113 |
Net unrealized gains (losses) arising during the period | 13 | 19 | (9) | 51 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax | 0 | (1) | 0 | 0 |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (4) | (14) | ||
Losses reclassified into earnings | 0 | 1 | 0 | 1 |
Net change | 0 | 0 | 0 | 1 |
Ending balance | (4) | (13) | (4) | (13) |
Foreign currency translation adjustments [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (1) | (1) | ||
Other comprehensive (loss) income before reclassifications | 1 | 0 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 1 | 0 | ||
Ending balance | $ 0 | $ (1) | $ 0 | $ (1) |
Balance Sheet Information (Othe
Balance Sheet Information (Other Current Assets) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Jun. 30, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Other Receivables, Net, Current | $ 122 | $ 167 |
Other Assets, Miscellaneous, Current | 195 | 191 |
Other current assets | $ 317 | $ 358 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||||||||||||||
Aug. 18, 2022 USD ($) | Oct. 14, 2021 USD ($) | Dec. 29, 2023 USD ($) | Dec. 30, 2022 USD ($) | Dec. 29, 2023 USD ($) | Dec. 30, 2022 USD ($) | Sep. 13, 2023 USD ($) $ / shares | Jun. 30, 2023 USD ($) | May 30, 2023 USD ($) | Nov. 30, 2022 USD ($) | Dec. 08, 2020 USD ($) | Jun. 18, 2020 USD ($) | Jun. 10, 2020 USD ($) | May 14, 2015 USD ($) | Dec. 02, 2014 USD ($) | May 28, 2014 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||
Less: current portion of debt, net of debt issuance costs | $ 0 | $ 0 | $ (63,000,000) | |||||||||||||
Long-term debt, less current portion, net of debt issuance costs | 5,669,000,000 | 5,669,000,000 | 5,388,000,000 | |||||||||||||
Capped call transaction, price per share (in dollars per share) | $ / shares | $ 107.848 | |||||||||||||||
Capped call transaction, premium (as a percent) | 0.70 | |||||||||||||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 63.44 | |||||||||||||||
Expenses related to the capped call transaction | 95,000,000 | 95,000,000 | ||||||||||||||
Net gain (loss) recognized from early redemption of debt | 0 | $ (204,000,000) | 29,000,000 | $ (204,000,000) | ||||||||||||
Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Long-term debt, gross | 5,701,000,000 | 5,701,000,000 | 5,487,000,000 | |||||||||||||
Less: unamortized debt issuance costs | (32,000,000) | (32,000,000) | (36,000,000) | |||||||||||||
Debt, net of debt issuance costs | 5,669,000,000 | 5,669,000,000 | 5,451,000,000 | |||||||||||||
Less: current portion of debt, net of debt issuance costs | 0 | 0 | (63,000,000) | |||||||||||||
Long-term debt, less current portion, net of debt issuance costs | 5,669,000,000 | 5,669,000,000 | 5,388,000,000 | |||||||||||||
Senior Notes 4.75 Percent Due January 2025 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 479,000,000 | 479,000,000 | 479,000,000 | |||||||||||||
Senior Notes 4.875 percent Due June 2027 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 504,000,000 | 504,000,000 | 504,000,000 | |||||||||||||
Senior Notes 4.091 percent due June 2029 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 469,000,000 | 469,000,000 | 465,000,000 | |||||||||||||
Senior Notes 3.125 percent due July 2029 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 163,000,000 | 163,000,000 | 163,000,000 | |||||||||||||
Senior Notes 8.25 percent due December 2029 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||||||
Senior Notes 4.125 percent due January 2031 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 275,000,000 | 275,000,000 | 275,000,000 | |||||||||||||
Senior Notes 3.375 Percent due July 2031 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 72,000,000 | 72,000,000 | 72,000,000 | |||||||||||||
Senior Notes 8.50 percent due July 2031 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 500,000,000 | 500,000,000 | 500,000,000 | |||||||||||||
Senior Notes 9.625 Percent due December 2032 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 750,000,000 | 750,000,000 | 750,000,000 | |||||||||||||
Senior notes 5.75 percent due December 2034 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 489,000,000 | 489,000,000 | 489,000,000 | |||||||||||||
Convertible Senior Note 3.50 percent due June 2028 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 1,500,000,000 | 1,500,000,000 | 0 | |||||||||||||
Convertible Debt | 1,500,000,000 | 1,500,000,000 | 0 | |||||||||||||
Term Loan A1 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 0 | 0 | 430,000,000 | |||||||||||||
Term Loan A2 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 0 | 0 | 430,000,000 | |||||||||||||
Term Loan A3 | Reported Value Measurement | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Senior Notes | 0 | $ 0 | $ 430,000,000 | |||||||||||||
Senior note 3.50 percent due June 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption price, percentage of total principal amount plus accrued interest (as a percent) | 100% | |||||||||||||||
Minimum principal amount outstanding required for redemption | $ 150,000,000 | $ 150,000,000 | ||||||||||||||
Term Loan | Debt Instrument, Leverage, Period Two | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum interest coverage ratio | 2.25 | 2.25 | ||||||||||||||
Minimum interest coverage ratio | 1 | 1 | ||||||||||||||
Term Loan | Debt Instrument, Leverage, Period Three | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum interest coverage ratio | 3.25 | 3.25 | ||||||||||||||
Minimum interest coverage ratio | 1 | 1 | ||||||||||||||
Senior Notes | Senior Notes 4.75 Percent Due January 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | |||||||||||||||
Stated interest rate (as a percent) | 4.75% | |||||||||||||||
Senior Notes | Senior Notes 4.875 percent Due June 2027 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 700,000,000 | |||||||||||||||
Stated interest rate (as a percent) | 4.875% | |||||||||||||||
Senior Notes | Senior Notes 4.091 percent due June 2029 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||||||||
Stated interest rate (as a percent) | 4.091% | |||||||||||||||
Senior Notes | Senior Notes 3.125 percent due July 2029 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||||||||
Stated interest rate (as a percent) | 3.125% | |||||||||||||||
Senior Notes | Senior Notes 8.25 percent due December 2029 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||||||||
Stated interest rate (as a percent) | 8.25% | |||||||||||||||
Senior Notes | Senior Notes 4.125 percent due January 2031 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||||||||
Stated interest rate (as a percent) | 4.125% | |||||||||||||||
Senior Notes | Senior Notes 3.375 Percent due July 2031 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||||||||
Stated interest rate (as a percent) | 3.375% | |||||||||||||||
Senior Notes | Senior Notes 8.50 percent due July 2031 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||||||||
Stated interest rate (as a percent) | 8.50% | |||||||||||||||
Senior Notes | Senior Notes 9.625 Percent due December 2032 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 750,000,000 | |||||||||||||||
Stated interest rate (as a percent) | 9.625% | |||||||||||||||
Senior Notes | Senior notes 5.75 percent due December 2034 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||||||||
Stated interest rate (as a percent) | 5.75% | |||||||||||||||
Convertible Debt | Convertible Senior Note 3.50 percent due June 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount | $ 1,500,000,000 | |||||||||||||||
Stated interest rate (as a percent) | 3.50% | |||||||||||||||
Convertible Debt | Senior note 3.50 percent due June 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Aggregate principal amount pursuant to over-allotment option | $ 200,000,000 | |||||||||||||||
Term Loan A1 | Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | |||||||||||||||
Term Loan A2 | Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | |||||||||||||||
Term Loan A3 | Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | |||||||||||||||
Tenth Amendment to Credit Agreement | Term Loan | Debt Instrument, Leverage, Period Two | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum leverage ratio | 6.75 | 6.75 | ||||||||||||||
Minimum leverage ratio | 1 | 1 | ||||||||||||||
Covenant relief period, maximum leverage ratio, minimum aggregate revolving commitments percentage required (as a percent) | 0.25 | 0.25 | ||||||||||||||
Tenth Amendment to Credit Agreement | Term Loan | Debt Instrument, Leverage, Period Three | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum leverage ratio | 4 | 4 | ||||||||||||||
Minimum leverage ratio | 1 | 1 | ||||||||||||||
Terms Loans A1, A2 and A3 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Net gain (loss) recognized from early redemption of debt | $ 29,000,000 | |||||||||||||||
Senior note 3.50 percent due June 2028 | Convertible Debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Exchange rate per share | 0.012153 | |||||||||||||||
Minimum | Term Loan A1 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Variable interest rate (as a percent) | 1.125% | |||||||||||||||
Minimum | Term Loan A2 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Variable interest rate (as a percent) | 1.25% | |||||||||||||||
Minimum | Term Loan A3 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Variable interest rate (as a percent) | 1.25% | |||||||||||||||
Maximum | Senior note 3.50 percent due June 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt redemption price, percentage of total principal amount plus accrued interest (as a percent) | 130% | |||||||||||||||
Maximum | Term Loan A1 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Variable interest rate (as a percent) | 2.375% | |||||||||||||||
Maximum | Term Loan A2 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Variable interest rate (as a percent) | 2.50% | |||||||||||||||
Maximum | Term Loan A3 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Variable interest rate (as a percent) | 2.50% |
Debt (Future principal payments
Debt (Future principal payments on long-term debt) (Details) $ in Millions | Dec. 29, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Repayments of long-term debt, remainder of 2021 | $ 0 |
Repayments of long-term debt, 2022 | 479 |
Repayments of long-term debt, 2023 | 0 |
Repayments of long-term debt, 2024 | 505 |
Repayments of long-term debt, 2025 | 1,500 |
Thereafter | 3,245 |
Total future principal payments on long-term debt | $ 5,729 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 15 | $ (5) | $ 52 | $ (7) |
Net discrete tax expense | 36 | $ (5) | ||
Unrecognized tax benefits, period increase (decrease) | (8) | |||
Unrecognized Tax Benefits | $ 108 | $ 108 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 25% | 25% | 25% | 25% |
Restructuring and Exit Costs (D
Restructuring and Exit Costs (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 29, 2023 USD ($) | Dec. 30, 2022 USD ($) numberOfEmployees | Dec. 29, 2023 USD ($) | Dec. 30, 2022 USD ($) | Jun. 30, 2023 numberOfEmployees | |
Restructuring Reserve [Roll Forward] | |||||
Restructuring charges | $ (31) | $ 81 | $ (29) | $ 90 | |
Gain on sale of assets | 30 | ||||
Restructuring and other, net | (31) | $ 81 | (29) | $ 90 | |
Adjustments | (2) | ||||
Approximate headcount reduction | numberOfEmployees | 480 | ||||
Total headcount reduction, inception to date | numberOfEmployees | 3,480 | ||||
Employee severance [Member] | April 2023 Restructuring Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual, beginning balance | 108 | ||||
Restructuring charges | 0 | ||||
Cash payments | (104) | ||||
Restructuring accrual, ending balance | 3 | 3 | |||
Total costs incurred inception to date as of December 29, 2023 | 144 | ||||
Expected restructuring costs | 0 | 0 | |||
Adjustments | (1) | ||||
Employee severance [Member] | October 2022 Restructuring Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual, beginning balance | 1 | ||||
Restructuring charges | 0 | ||||
Cash payments | (1) | ||||
Restructuring accrual, ending balance | 0 | 0 | |||
Total costs incurred inception to date as of December 29, 2023 | 104 | ||||
Total expected charges to be incurred as of December 29, 2023 | 0 | 0 | |||
Adjustments | 0 | ||||
Employee severance [Member] | Other Restructuring Plans [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual, beginning balance | 1 | ||||
Restructuring charges | 3 | ||||
Cash payments | (4) | ||||
Restructuring accrual, ending balance | 0 | 0 | |||
Total costs incurred inception to date as of December 29, 2023 | 66 | ||||
Total expected charges to be incurred as of December 29, 2023 | 0 | 0 | |||
Adjustments | 0 | ||||
Facility closing [Member] | April 2023 Restructuring Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual, beginning balance | 0 | ||||
Restructuring charges | 0 | ||||
Cash payments | 0 | ||||
Restructuring accrual, ending balance | 0 | 0 | |||
Total costs incurred inception to date as of December 29, 2023 | 3 | ||||
Expected restructuring costs | 0 | 0 | |||
Facility closing [Member] | October 2022 Restructuring Plan | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual, beginning balance | 5 | ||||
Restructuring charges | 0 | ||||
Cash payments | (1) | ||||
Restructuring accrual, ending balance | 3 | 3 | |||
Total costs incurred inception to date as of December 29, 2023 | 5 | ||||
Total expected charges to be incurred as of December 29, 2023 | 0 | 0 | |||
Adjustments | (1) | ||||
Facility closing [Member] | Other Restructuring Plans [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual, beginning balance | 4 | ||||
Restructuring charges | 0 | ||||
Cash payments | 0 | ||||
Restructuring accrual, ending balance | 4 | 4 | |||
Total costs incurred inception to date as of December 29, 2023 | 13 | ||||
Total expected charges to be incurred as of December 29, 2023 | 0 | 0 | |||
Adjustments | 0 | ||||
Restructuring Charges [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual, beginning balance | 119 | ||||
Restructuring charges | 3 | ||||
Cash payments | (110) | ||||
Restructuring accrual, ending balance | 10 | 10 | |||
Total costs incurred inception to date as of December 29, 2023 | 335 | ||||
Total expected charges to be incurred as of December 29, 2023 | 0 | 0 | |||
Restructuring Charges [Member] | Accrued Liabilities | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual, beginning balance | 117 | ||||
Restructuring accrual, ending balance | 9 | 9 | |||
Restructuring Charges [Member] | Other Noncurrent Liabilities | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring accrual, beginning balance | 2 | ||||
Restructuring accrual, ending balance | $ 1 | $ 1 |
Derivative Financial Instrume_3
Derivative Financial Instruments Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Jun. 30, 2023 | |
Derivative Financial Instruments | |||||
Net gain recognized from termination of interest rate swap | $ 0 | $ 0 | $ 104 | $ 0 | |
Other, net | |||||
Derivative Financial Instruments | |||||
Downward adjustments to write down the carrying amount of investments to fair value | (25) | ||||
Interest rate swap | |||||
Derivative Financial Instruments | |||||
Derivative, Cash Received on Hedge | 25 | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Reclassification for Discontinuance, before Tax | 6 | ||||
Cash Flow Hedging [Member] | |||||
Derivative Financial Instruments | |||||
Unrealized Gain (Loss) on Cash Flow Hedging Instruments | 4 | $ 12 | |||
Derivatives not designated as hedging instruments [Member] | Total return swap | |||||
Derivative Financial Instruments | |||||
Derivative, notional amount | $ 107 | $ 107 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Schedule of the effect of derivative instruments on Other comprehensive income (loss) and the Consolidated Statement of Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Foreign currency forward exchange contracts | Other, net | ||||
Derivatives Instruments, Gain (Loss) | ||||
Amount of Gain/(Loss) Recognized in Income on Derivatives | $ 6 | $ 4 | $ 0 | $ (6) |
Amount of Gain/(Loss) Recognized in OCI on Derivatives (Effective Portion) | 13 | 19 | 6 | (1) |
Amount of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 1 | 0 | 1 | (1) |
Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (12) | (19) | ||
Interest rate swap | Other, net | ||||
Derivatives Instruments, Gain (Loss) | ||||
Amount of Gain/(Loss) Recognized in OCI on Derivatives (Effective Portion) | 0 | 0 | (15) | 52 |
Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 11 | ||
Amount of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | 0 | 104 | 0 |
Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 6 | 8 | ||
Interest rate swap | Operating expenses | ||||
Derivatives Instruments, Gain (Loss) | ||||
Amount of Gain/(Loss) Recognized in Income on Derivatives | (13) | $ 0 | $ (8) | |
Total return swap | Operating expenses | ||||
Derivatives Instruments, Gain (Loss) | ||||
Amount of Gain/(Loss) Recognized in Income on Derivatives | (16) | |||
Foreign Exchange | Other, net | ||||
Derivatives Instruments, Gain (Loss) | ||||
Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (5) | $ (6) |
Derivative Financial Instrume_5
Derivative Financial Instruments Derivative Financial Instruments (Schedule of notional value of outstanding foreign currency forward exchange contracts) (Details) - Foreign currency forward exchange contracts - USD ($) $ in Millions | Dec. 29, 2023 | Jun. 30, 2023 |
Designated as Hedging Instrument [Member] | ||
Derivative Financial Instruments | ||
Derivative, notional amount | $ 299 | $ 445 |
Derivatives not designated as hedging instruments [Member] | ||
Derivative Financial Instruments | ||
Derivative, notional amount | 144 | 197 |
Singapore, Dollars | Designated as Hedging Instrument [Member] | ||
Derivative Financial Instruments | ||
Derivative, notional amount | 126 | 195 |
Singapore, Dollars | Derivatives not designated as hedging instruments [Member] | ||
Derivative Financial Instruments | ||
Derivative, notional amount | 102 | 161 |
China, Yuan Renminbi | Designated as Hedging Instrument [Member] | ||
Derivative Financial Instruments | ||
Derivative, notional amount | 40 | 64 |
China, Yuan Renminbi | Derivatives not designated as hedging instruments [Member] | ||
Derivative Financial Instruments | ||
Derivative, notional amount | 19 | 12 |
United Kingdom, Pounds | Designated as Hedging Instrument [Member] | ||
Derivative Financial Instruments | ||
Derivative, notional amount | 38 | 57 |
United Kingdom, Pounds | Derivatives not designated as hedging instruments [Member] | ||
Derivative Financial Instruments | ||
Derivative, notional amount | 7 | 8 |
Thailand, Baht | Designated as Hedging Instrument [Member] | ||
Derivative Financial Instruments | ||
Derivative, notional amount | 95 | 129 |
Thailand, Baht | Derivatives not designated as hedging instruments [Member] | ||
Derivative Financial Instruments | ||
Derivative, notional amount | $ 16 | $ 16 |
Derivative Financial Instrume_6
Derivative Financial Instruments Derivative Financial Instruments (Schedule of gross fair value of derivative instruments) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Jun. 30, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | $ 6 | $ 23 |
Derivative liability, fair value, gross liability | (1) | (11) |
Foreign currency forward exchange contracts | Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 5 | 2 |
Foreign currency forward exchange contracts | Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | (1) | (10) |
Foreign currency forward exchange contracts | Derivatives not designated as hedging instruments [Member] | Other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 1 | 0 |
Foreign currency forward exchange contracts | Derivatives not designated as hedging instruments [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | $ 0 | (1) |
Interest rate swap | Designated as Hedging Instrument [Member] | Other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | 20 | |
Interest rate swap | Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | 0 | |
Total return swap | Derivatives not designated as hedging instruments [Member] | Other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value, gross asset | (1) | |
Total return swap | Derivatives not designated as hedging instruments [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value, gross liability | $ 0 |
Fair Value (Schedule of Fair Va
Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Sep. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Jun. 30, 2023 | |
Liabilities: | ||||
Net gains (losses) from investment under measurement alternative | $ (14,000) | $ 3,000 | ||
Recurring basis [Member] | ||||
Assets: | ||||
Total cash equivalents | $ 89,000 | $ 72,000 | ||
Restricted cash and investments: | ||||
Total assets | 112,000 | 113,000 | ||
Liabilities: | ||||
Total liabilities | 1,000 | (11,000) | ||
Recurring basis [Member] | Money market funds [Member] | ||||
Assets: | ||||
Total cash equivalents | 89,000 | 72,000 | ||
Restricted cash and investments: | ||||
Restricted cash and investments: | 1,000 | 1,000 | ||
Recurring basis [Member] | Time deposits and certificates of deposit [Member] | ||||
Restricted cash and investments: | ||||
Restricted cash and investments: | 1,000 | 1,000 | ||
Recurring basis [Member] | Other debt securities | ||||
Restricted cash and investments: | ||||
Restricted cash and investments: | 15,000 | 16,000 | ||
Recurring basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||||
Assets: | ||||
Total cash equivalents | 89,000 | 72,000 | ||
Restricted cash and investments: | ||||
Total assets | 90,000 | 73,000 | ||
Liabilities: | ||||
Total liabilities | 0 | 0 | ||
Recurring basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Money market funds [Member] | ||||
Assets: | ||||
Total cash equivalents | 89,000 | 72,000 | ||
Restricted cash and investments: | ||||
Restricted cash and investments: | 1,000 | 1,000 | ||
Recurring basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Time deposits and certificates of deposit [Member] | ||||
Restricted cash and investments: | ||||
Restricted cash and investments: | 0 | 0 | ||
Recurring basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Other debt securities | ||||
Restricted cash and investments: | ||||
Restricted cash and investments: | 0 | 0 | ||
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Assets: | ||||
Total cash equivalents | 0 | 0 | ||
Restricted cash and investments: | ||||
Total assets | 7,000 | 24,000 | ||
Liabilities: | ||||
Total liabilities | 1,000 | (11,000) | ||
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member] | ||||
Assets: | ||||
Total cash equivalents | 0 | 0 | ||
Restricted cash and investments: | ||||
Restricted cash and investments: | 0 | 0 | ||
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Time deposits and certificates of deposit [Member] | ||||
Restricted cash and investments: | ||||
Restricted cash and investments: | 1,000 | 1,000 | ||
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other debt securities | ||||
Restricted cash and investments: | ||||
Restricted cash and investments: | 0 | 0 | ||
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Assets: | ||||
Total cash equivalents | 0 | 0 | ||
Restricted cash and investments: | ||||
Total assets | 15,000 | 16,000 | ||
Liabilities: | ||||
Total liabilities | 0 | 0 | ||
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | ||||
Assets: | ||||
Total cash equivalents | 0 | 0 | ||
Restricted cash and investments: | ||||
Restricted cash and investments: | 0 | 0 | ||
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Time deposits and certificates of deposit [Member] | ||||
Restricted cash and investments: | ||||
Restricted cash and investments: | 0 | 0 | ||
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other debt securities | ||||
Restricted cash and investments: | ||||
Restricted cash and investments: | 15,000 | 16,000 | ||
Derivative assets | Recurring basis [Member] | ||||
Restricted cash and investments: | ||||
Derivative assets | 6,000 | 23,000 | ||
Derivative assets | Recurring basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||||
Restricted cash and investments: | ||||
Derivative assets | 0 | 0 | ||
Derivative assets | Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Restricted cash and investments: | ||||
Derivative assets | 6,000 | 23,000 | ||
Derivative assets | Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Restricted cash and investments: | ||||
Derivative assets | 0 | 0 | ||
Derivative liabilities | Recurring basis [Member] | ||||
Liabilities: | ||||
Derivative liabilities | 1,000 | (11,000) | ||
Derivative liabilities | Recurring basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||||
Liabilities: | ||||
Derivative liabilities | 0 | 0 | ||
Derivative liabilities | Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Liabilities: | ||||
Derivative liabilities | 1,000 | (11,000) | ||
Derivative liabilities | Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Liabilities: | ||||
Derivative liabilities | $ 0 | $ 0 |
Fair Value (Schedule of Fair _2
Fair Value (Schedule of Fair Value, by Balance Sheet Grouping, Measured on Recurring Basis) (Details) - Recurring basis [Member] - USD ($) $ in Millions | Dec. 29, 2023 | Jun. 30, 2023 |
Assets: | ||
Cash and cash equivalents | $ 89 | $ 72 |
Other current assets | 8 | 25 |
Other current assets | 15 | 16 |
Total assets | 112 | 113 |
Liabilities: | ||
Accrued expenses | 1 | 11 |
Total liabilities | 1 | (11) |
Derivative assets | ||
Liabilities: | ||
Derivative assets | 6 | 23 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | ||
Assets: | ||
Cash and cash equivalents | 89 | 72 |
Other current assets | 1 | 1 |
Other current assets | 0 | 0 |
Total assets | 90 | 73 |
Liabilities: | ||
Accrued expenses | 0 | 0 |
Total liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Derivative assets | ||
Liabilities: | ||
Derivative assets | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Other current assets | 7 | 24 |
Other current assets | 0 | 0 |
Total assets | 7 | 24 |
Liabilities: | ||
Accrued expenses | 1 | 11 |
Total liabilities | 1 | (11) |
Significant Other Observable Inputs (Level 2) [Member] | Derivative assets | ||
Liabilities: | ||
Derivative assets | 6 | 23 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Other current assets | 0 | 0 |
Other current assets | 15 | 16 |
Total assets | 15 | 16 |
Liabilities: | ||
Accrued expenses | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Derivative assets | ||
Liabilities: | ||
Derivative assets | $ 0 | $ 0 |
Fair Value (Schedule of Carryin
Fair Value (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Details) - USD ($) $ in Millions | Dec. 29, 2023 | Jun. 30, 2023 |
Debt Fair Value Disclosures | ||
Less: current portion of debt, net of debt issuance costs | $ 0 | $ (63) |
Long-term debt, less current portion, net of debt issuance costs | 5,669 | 5,388 |
Reported Value Measurement | ||
Debt Fair Value Disclosures | ||
Long-term debt, gross | 5,701 | 5,487 |
Debt issuance costs | (32) | (36) |
Debt, net of debt issuance costs | 5,669 | 5,451 |
Less: current portion of debt, net of debt issuance costs | 0 | (63) |
Long-term debt, less current portion, net of debt issuance costs | 5,669 | 5,388 |
Reported Value Measurement | Senior Notes 4.75 Percent Due January 2025 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 479 | 479 |
Reported Value Measurement | Senior Notes 4.875 percent Due June 2027 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 504 | 504 |
Reported Value Measurement | Convertible Senior Note 3.50 percent due June 2028 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 1,500 | 0 |
Reported Value Measurement | Senior Notes 4.091 percent due June 2029 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 469 | 465 |
Reported Value Measurement | Senior Notes 3.125 percent due July 2029 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 163 | 163 |
Reported Value Measurement | Senior Notes 8.25 percent due December 2029 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 500 | 500 |
Reported Value Measurement | Senior Notes 4.125 percent due January 2031 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 275 | 275 |
Reported Value Measurement | Senior Notes 3.375 Percent due July 2031 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 72 | 72 |
Reported Value Measurement | Senior Notes 8.50 percent due July 2031 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 500 | 500 |
Reported Value Measurement | Senior Notes 9.625 Percent due December 2032 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 750 | 750 |
Reported Value Measurement | Senior notes 5.75 percent due December 2034 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 489 | 489 |
Reported Value Measurement | Term Loan A1 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 0 | 430 |
Reported Value Measurement | Term Loan A2 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 0 | 430 |
Reported Value Measurement | Term Loan A3 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 0 | 430 |
Estimate of Fair Value Measurement | ||
Debt Fair Value Disclosures | ||
Long-term debt, gross | 6,094 | 5,371 |
Debt issuance costs | 0 | 0 |
Debt, net of debt issuance costs | 6,094 | 5,371 |
Less: current portion of debt, net of debt issuance costs | 0 | (62) |
Long-term debt, less current portion, net of debt issuance costs | 6,094 | 5,309 |
Estimate of Fair Value Measurement | Senior Notes 4.75 Percent Due January 2025 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 476 | 472 |
Estimate of Fair Value Measurement | Senior Notes 4.875 percent Due June 2027 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 496 | 484 |
Estimate of Fair Value Measurement | Convertible Senior Note 3.50 percent due June 2028 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 1,812 | 0 |
Estimate of Fair Value Measurement | Senior Notes 4.091 percent due June 2029 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 457 | 436 |
Estimate of Fair Value Measurement | Senior Notes 3.125 percent due July 2029 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 136 | 126 |
Estimate of Fair Value Measurement | Senior Notes 8.25 percent due December 2029 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 539 | 522 |
Estimate of Fair Value Measurement | Senior Notes 4.125 percent due January 2031 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 247 | 227 |
Estimate of Fair Value Measurement | Senior Notes 3.375 Percent due July 2031 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 57 | 53 |
Estimate of Fair Value Measurement | Senior Notes 8.50 percent due July 2031 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 545 | 524 |
Estimate of Fair Value Measurement | Senior Notes 9.625 Percent due December 2032 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 859 | 830 |
Estimate of Fair Value Measurement | Senior notes 5.75 percent due December 2034 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 470 | 438 |
Estimate of Fair Value Measurement | SOFR Based Term Loan A1 due September 2025 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 0 | 426 |
Estimate of Fair Value Measurement | SOFR Based Term Loan A2 due July 2027 | ||
Debt Fair Value Disclosures | ||
Senior Notes | 0 | 420 |
Estimate of Fair Value Measurement | SOFR Based Term Loan A3 due July 2027 | ||
Debt Fair Value Disclosures | ||
Senior Notes | $ 0 | $ 413 |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Sep. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | Jun. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Income (loss) from equity method investments | $ 3 | $ (29) | |||
Equity Method Investments | 26 | $ 55 | |||
Net gains (losses) from investment under measurement alternative | $ (14) | $ 3 | |||
Other current assets [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | |||||
Cost method investment | $ 75 | $ 88 |
Equity (Narrative) (Details)
Equity (Narrative) (Details) | 6 Months Ended |
Dec. 29, 2023 USD ($) $ / shares shares | |
Equity [Abstract] | |
Authorized share capital (in dollars) | $ | $ 13,500 |
Ordinary shares, authorized (in shares) | 1,250,000,000 |
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 |
Ordinary shares, outstanding (in shares) | 209,504,857 |
Preferred shares, authorized (in shares) | 100,000,000 |
Preferred shares, par value (in dollars per share) | $ / shares | $ 0.00001 |
Preferred shares, issued (in shares) | 0 |
Preferred shares, outstanding (in shares) | 0 |
Common stock, voting rights | one vote per share |
Preferred stock minimum number of series | 1 |
Stock repurchase program, remaining authorized repurchase amount | $ | $ 1,900,000,000 |
Equity (Schedule of Share Repur
Equity (Schedule of Share Repurchases) (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Dollar Value [Abstract] | ||||
Tax withholding related to vesting of equity awards (in shares) | 0 | |||
Repurchases of ordinary shares and tax withholding related to vesting of equity awards (in shares) | 0 | |||
Repurchases of ordinary shares (1) | $ 0 | $ 400 | ||
Tax withholding related to vesting of equity awards | $ 3 | $ 0 | 28 | $ 39 |
Repurchases of ordinary shares and tax withholding related to vesting of equity awards | $ 28 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,555 | $ 1,887 | $ 3,009 | $ 3,922 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 777 | 760 | 1,588 | 1,561 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 544 | 853 | 999 | 1,789 |
EMEA | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 234 | 274 | 422 | 572 |
OEMs | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,140 | 1,365 | 2,172 | 2,910 |
Distributors | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 218 | 297 | 484 | 596 |
Retailers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 197 | $ 225 | $ 353 | $ 416 |
Guarantees Guarantees (Narrativ
Guarantees Guarantees (Narrative) (Details) $ in Millions | 3 Months Ended |
Dec. 29, 2023 USD ($) | |
Schedule of Fiscal Years [Line Items] | |
intellectual property indemnification obligations | $ 0 |
Minimum | |
Schedule of Fiscal Years [Line Items] | |
Product warranty period term | 1 year |
Maximum | |
Schedule of Fiscal Years [Line Items] | |
Product warranty period term | 5 years |
Guarantees (Product Warranty) (
Guarantees (Product Warranty) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 29, 2023 | Dec. 30, 2022 | |
Guarantees [Abstract] | ||
Balance, beginning of period | $ 168 | $ 148 |
Warranties issued | 27 | 27 |
Repairs and replacements | (40) | (48) |
Changes in liability for pre-existing warranties, including expirations | 12 | 26 |
Balance, end of period | $ 167 | $ 153 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of computation of basic and diluted net income (loss) per share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2023 | Dec. 30, 2022 | Dec. 29, 2023 | Dec. 30, 2022 | |
Numerator: | ||||
Net loss | $ (19) | $ (33) | $ (203) | $ (4) |
Number of shares used in per share calculations: | ||||
Total shares for purposes of calculating basic net loss per share | 209,000 | 206,000 | 209,000 | 207,000 |
Weighted-average effect of dilutive securities: | ||||
Employee equity award plans | 0 | 0 | 0 | 0 |
Total shares for purposes of calculating diluted net loss per share | 209,000 | 206,000 | 209,000 | 207,000 |
Net loss per share: | ||||
Basic (in dollars per share) | $ (0.09) | $ (0.16) | $ (0.97) | $ (0.02) |
Diluted (in dollars per share) | $ (0.09) | $ (0.16) | $ (0.97) | $ (0.02) |
Antidilutive securities excluded from computation of Earnings Per Share, amount | 2,000 | 6,000 |
Legal, Environmental and Othe_2
Legal, Environmental and Other Contingencies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Apr. 18, 2023 USD ($) audit | Dec. 29, 2023 USD ($) | Dec. 29, 2023 USD ($) | Dec. 30, 2022 USD ($) | |
Loss Contingencies [Line Items] | ||||
Settlement amount | $ 300 | |||
Settlement quarterly installments | $ 15 | |||
Settlement, length of payments | 5 years | |||
Settlement, number of audits | audit | 3 | |||
Settlement, number of third-party audits | audit | 1 | |||
Settlement, number of internal audits | audit | 2 | |||
Settlement, suspended denial order period | 5 years | |||
Litigation settlement expense | $ 300 | |||
BIS settlement penalty | $ 15 | $ (15) | $ 0 | |
Accrued Liabilities | ||||
Loss Contingencies [Line Items] | ||||
Accrued settlement expenses | 60 | 60 | ||
Other Noncurrent Liabilities | ||||
Loss Contingencies [Line Items] | ||||
Accrued settlement expenses | $ 225 | $ 225 |
Commitments (Details)
Commitments (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 29, 2023 USD ($) | Dec. 29, 2023 USD ($) | |
Long-Term Purchase Commitment [Line Items] | ||
Unrecorded Unconditional Purchase Obligation | $ 2,600 | $ 2,600 |
2025 | 146 | 146 |
2026 | 218 | 218 |
2027 | 1,500 | 1,500 |
2028 | 744 | 744 |
Recorded Unconditional Purchase Obligation, Order Cancellation Fees | (4) | 114 |
Order Cancellation Fees | 144 | 144 |
Accrued Liabilities | ||
Long-Term Purchase Commitment [Line Items] | ||
Order Cancellation Fees | 127 | 127 |
Accounts Payable | ||
Long-Term Purchase Commitment [Line Items] | ||
Order Cancellation Fees | $ 17 | $ 17 |
Subsequent event (Details)
Subsequent event (Details) - $ / shares | 3 Months Ended | |
Jan. 24, 2024 | Dec. 29, 2023 | |
Subsequent Event [Line Items] | ||
Cash dividends declared per ordinary share (in dollars per share) | $ 1.4 | |
Common Stock | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Cash dividends declared per ordinary share (in dollars per share) | $ 0.70 | |
Dividends payable date | Apr. 04, 2024 | |
Dividends payable, date of record | Mar. 21, 2024 |
Uncategorized Items - stx-20231
Label | Element | Value |
Proceeds from Sale of Other Assets, Investing Activities | us-gaap_ProceedsFromSaleOfOtherAssetsInvestingActivities | $ 34,000,000 |