Acquisition

9 Months Ended

Mar. 31, 2017

Business Combinations [Abstract]

Acquisition

Acquisitions

Fiscal 2016 Acquisition

In May 2016, the Company acquired SanDisk, a global leader in NAND flash storage solutions, primarily to deepen the Company’s expertise in non-volatile memory and enable the Company to vertically integrate into NAND, securing long-term access to solid-state technology at a lower cost.

Assets Acquired and Liabilities Assumed at Fair Value

During the nine months endedMarch 31, 2017, the Company increased goodwill by $64 million due to adjustments to the assessment of fair value for certain acquired intangible assets, inventory, property, plant and equipment, contingent liabilities, and deferred tax liability. Management is continuing to assess the values assigned to the remaining assets acquired and liabilities assumed and may make further adjustments during the measurement period (through May 11, 2017) as further information becomes available. Any changes in the fair values of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill.

Pro Forma Financial Information

The financial information in the table below summarizes the combined results of operations for the Company and SanDisk, on a pro forma basis, as though the combination had occurred as of the beginning of 2016. The pro forma financial information for the periods presented includes the effects of adjustments related to amortization charges from acquired intangible assets, depreciation charges from acquired fixed assets, interest expenses from financing the acquisition, stock-based compensation expenses from the conversion of unvested equity awards and the elimination of certain expenses directly related to the transaction. The pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisition had taken place at the beginning of 2016.

	Three Months Ended		Nine Months Ended
	April 1, 2016		April 1, 2016
	(in millions, except per share amounts)
Revenue, net	$	4,188	$	13,860
Net income	180		468
Basic income per common share	$	0.64	$	1.67
Diluted income per common share	$	0.63	$	1.64