Separate Financial Information of Guarantor Subsidiaries (Tables)

9 Months Ended

Mar. 30, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet

Condensed Consolidating Balance Sheet
As of March 30, 2018
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total Company
	(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	118	$	729	$	4,116	$	—		$	4,963
Short-term investments	—		—		20		—			20
Accounts receivable, net	—		1,232		779		—			2,011
Intercompany receivables	1,869		3,488		2,209		(7,566		)	—
Inventories	—		1,055		1,877		(262		)	2,670
Other current assets	15		185		263		37			500
Total current assets	2,002		6,689		9,264		(7,791		)	10,164
Property, plant and equipment, net	—		1,078		1,933		—			3,011
Notes receivable and investments in Flash Ventures	—		—		2,160		—			2,160
Goodwill	—		387		9,692		—			10,079
Other intangible assets, net	—		40		2,916		—			2,956
Investments in consolidated subsidiaries	19,980		19,439		—		(39,419		)	—
Loans due from consolidated affiliates	1,406		15		—		(1,421		)	—
Other non-current assets	172		613		444		(595		)	634
Total assets	$	23,560	$	28,261	$	26,409	$	(49,226	)	$	29,004
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	—	$	255	$	1,879	$	—		$	2,134
Accounts payable to related parties	—		—		282		—			282
Intercompany payables	916		4,277		2,373		(7,566		)	—
Accrued expenses	175		434		369		37			1,015
Accrued compensation	—		309		200		—			509
Accrued warranty	—		—		195		—			195
Current portion of long-term debt	124		—		—		—			124
Total current liabilities	1,215		5,275		5,298		(7,529		)	4,259
Long-term debt	11,045		—		31		—			11,076
Loans due to consolidated affiliates	—		342		1,079		(1,421		)	—
Other liabilities	—		2,458		506		(595		)	2,369
Total liabilities	12,260		8,075		6,914		(9,545		)	17,704
Total shareholders’ equity	11,300		20,186		19,495		(39,681		)	11,300
Total liabilities and shareholders’ equity	$	23,560	$	28,261	$	26,409	$	(49,226	)	$	29,004

Condensed Consolidating Balance Sheet
As of June 30, 2017
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total Company
	(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	18	$	1,212	$	5,124	$	—		$	6,354
Short-term investments	—		—		24		—			24
Accounts receivable, net	—		1,247		701		—			1,948
Intercompany receivables	1,225		2,528		622		(4,375		)	—
Inventories	—		1,133		1,494		(286		)	2,341
Other current assets	4		158		221		6			389
Total current assets	1,247		6,278		8,186		(4,655		)	11,056
Property, plant and equipment, net	—		1,124		1,909		—			3,033
Notes receivable and investments in Flash Ventures	—		—		1,340		—			1,340
Goodwill	—		331		9,683		—			10,014
Other intangible assets, net	—		11		3,812		—			3,823
Investments in consolidated subsidiaries	19,082		17,588		—		(36,670		)	—
Loans due from consolidated affiliates	4,700		16		—		(4,716		)	—
Other non-current assets	51		723		419		(599		)	594
Total assets	$	25,080	$	26,071	$	25,349	$	(46,640	)	$	29,860
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	—	$	257	$	1,887	$	—		$	2,144
Accounts payable to Flash Ventures	—		—		206		—			206
Intercompany payables	270		4,039		66		(4,375		)	—
Accrued expenses	270		360		439		—			1,069
Accrued compensation	—		313		193		—			506
Accrued warranty	—		4		182		—			186
Current portion of long-term debt	233		—		—		—			233
Total current liabilities	773		4,973		2,973		(4,375		)	4,344
Long-term debt	12,889		—		29		—			12,918
Loans due to consolidated affiliates	—		546		4,170		(4,716		)	—
Other liabilities	—		1,243		530		(593		)	1,180
Total liabilities	13,662		6,762		7,702		(9,684		)	18,442
Total shareholders’ equity	11,418		19,309		17,647		(36,956		)	11,418
Total liabilities and shareholders’ equity	$	25,080	$	26,071	$	25,349	$	(46,640	)	$	29,860

Condensed Income Statement

Condensed Consolidating Statement of Operations
For the three months ended March 30, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Revenue, net	$	—		$	3,685		$	4,924		$	(3,596	)	$	5,013
Cost of revenue	—			3,209			3,499			(3,622		)	3,086
Gross profit	—			476			1,425			26			1,927
Operating expenses:
Research and development	—			361			241			—			602
Selling, general and administrative	3			264			109			—			376
Intercompany operating expense (income)	(12		)	(391		)	403			—			—
Employee termination, asset impairment, and other charges	1			9			25			—			35
Total operating expenses	(8		)	243			778			—			1,013
Operating income	8			233			647			26			914
Interest and other income (expense):
Interest income	42			2			12			(40		)	16
Interest expense	(160		)	(5		)	(35		)	40			(160		)
Other expense, net	(894		)	(7		)	(7		)	10			(898		)
Total interest and other expense, net	(1,012		)	(10		)	(30		)	10			(1,042		)
Income (loss) before taxes	(1,004		)	223			617			36			(128		)
Income tax expense (benefit)	(228		)	22			17			—			(189		)
Equity in earnings from subsidiaries	837			562			—			(1,399		)	—
Net income	$	61		$	763		$	600		$	(1,363	)	$	61

Condensed Consolidating Statement of Operations
For the nine months ended March 30, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Revenue, net	$	—		$	11,159		$	15,178		$	(10,807	)	$	15,530
Cost of revenue	—			9,665			10,849			(10,837		)	9,677
Gross profit	—			1,494			4,329			30			5,853
Operating expenses:
Research and development	—			1,142			681			—			1,823
Selling, general and administrative	6			798			317			—			1,121
Intercompany operating expense (income)	(12		)	(1,221		)	1,233			—			—
Employee termination, asset impairment, and other charges	1			30			104			—			135
Total operating expenses	(5		)	749			2,335			—			3,079
Operating income	5			745			1,994			30			2,774
Interest and other income (expense):
Interest income	189			6			38			(187		)	46
Interest expense	(561		)	(15		)	(173		)	187			(562		)
Other income (expense), net	(902		)	—			(10		)	10			(902		)
Total interest and other expense, net	(1,274		)	(9		)	(145		)	10			(1,418		)
Income (loss) before taxes	(1,269		)	736			1,849			40			1,356
Income tax expense (benefit)	(319		)	1,677			79			—			1,437
Equity in earnings from subsidiaries	869			1,747			—			(2,616		)	—
Net income (loss)	$	(81	)	$	806		$	1,770		$	(2,576	)	$	(81	)

Condensed Consolidating Statement of Operations
For the three months ended March 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Revenue, net	$	—		$	3,406		$	4,333		$	(3,090	)	$	4,649
Cost of revenue	—			2,791			3,403			(3,068		)	3,126
Gross profit	—			615			930			(22		)	1,523
Operating expenses:
Research and development	—			413			200			—			613
Selling, general and administrative	1			240			105			—			346
Intercompany operating expense (income)	—			(282		)	282			—			—
Employee termination, asset impairment, and other charges	—			30			9			—			39
Total operating expenses	1			401			596			—			998
Operating income (loss)	(1		)	214			334			(22		)	525
Interest and other income (expense):
Interest income	88			8			6			(95		)	7
Interest expense	(211		)	—			(89		)	95			(205		)
Other expense, net	(9		)	(6		)	(8		)	—			(23		)
Total interest and other income (expense), net	(132		)	2			(91		)	—			(221		)
Income (loss) before taxes	(133		)	216			243			(22		)	304
Income tax expense (benefit)	(26		)	56			26			—			56
Equity in earnings from subsidiaries	355			229			—			(584		)	—
Net income	$	248		$	389		$	217		$	(606	)	$	248

Condensed Consolidating Statement of Operations
For the nine months ended March 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Revenue, net	$	—		$	10,890		$	12,871		$	(9,510	)	$	14,251
Cost of revenue	—			8,941			10,451			(9,532		)	9,860
Gross profit	—			1,949			2,420			22			4,391
Operating expenses:
Research and development	—			1,226			611			—			1,837
Selling, general and administrative	5			766			329			—			1,100
Intercompany operating expense (income)	—			(851		)	851			—			—
Employee termination, asset impairment, and other charges	—			88			64			—			152
Total operating expenses	5			1,229			1,855			—			3,089
Operating income (loss)	(5		)	720			565			22			1,302
Interest and other income (expense):
Interest income	268			9			15			(275		)	17
Interest expense	(642		)	(5		)	(274		)	275			(646		)
Other expense, net	(283		)	(10		)	(26		)	—			(319		)
Total interest and other expense, net	(657		)	(6		)	(285		)	—			(948		)
Income (loss) before taxes	(662		)	714			280			22			354
Income tax expense (benefit)	(207		)	177			267			—			237
Equity in earnings from subsidiaries	572			21			—			(593		)	—
Net income	$	117		$	558		$	13		$	(571	)	$	117

Condensed Statement of Comprehensive Income

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the three months ended March 30, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Net income	$	61		$	763		$	600		$	(1,363	)	$	61
Other comprehensive income, before tax:
Actuarial pension gain	1			1			1			(2		)	1
Foreign currency translation adjustment	76			75			75			(150		)	76
Net unrealized gain on derivative contracts	21			13			14			(27		)	21
Net unrealized loss on available-for-sale securities	(3		)	(3		)	(3		)	6			(3		)
Total other comprehensive income, before tax	95			86			87			(173		)	95
Income tax expense related to items of other comprehensive income	(3		)	(2		)	(3		)	5			(3		)
Other comprehensive income, net of tax	92			84			84			(168		)	92
Total comprehensive income	$	153		$	847		$	684		$	(1,531	)	$	153

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the nine months ended March 30, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Net income (loss)	$	(81	)	$	806		$	1,770		$	(2,576	)	$	(81	)
Other comprehensive income, before tax:
Actuarial pension gain	1			1			1			(2		)	1
Foreign currency translation adjustment	78			76			76			(152		)	78
Net unrealized gain on derivative contracts	35			19			20			(39		)	35
Net unrealized loss on available-for-sale securities	(4		)	(4		)	(4		)	8			(4		)
Total other comprehensive income, before tax	110			92			93			(185		)	110
Income tax expense related to items of other comprehensive income	(6		)	(2		)	(4		)	6			(6		)
Other comprehensive income, net of tax	104			90			89			(179		)	104
Total comprehensive income	$	23		$	896		$	1,859		$	(2,755	)	$	23

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the three months ended March 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Net income	$	248		$	389		$	217		$	(606	)	$	248
Other comprehensive income, before tax:
Actuarial pension gain	1			1			1			(2		)	1
Foreign currency translation adjustment	58			58			58			(116		)	58
Net unrealized gain on derivative contracts	45			42			41			(83		)	45
Total other comprehensive income, before tax	104			101			100			(201		)	104
Income tax expense related to items of other comprehensive income	(3		)	(3		)	(2		)	5			(3		)
Other comprehensive income, net of tax	101			98			98			(196		)	101
Total comprehensive income	$	349		$	487		$	315		$	(802	)	$	349

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the nine months ended March 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Net income	$	117		$	558		$	13		$	(571	)	$	117
Other comprehensive loss, before tax:
Actuarial pension gain	7			7			7			(14		)	7
Foreign currency translation adjustment	(111		)	(111		)	(134		)	245			(111		)
Net unrealized loss on derivative contracts	(95		)	(98		)	(95		)	193			(95		)
Total other comprehensive loss, before tax	(199		)	(202		)	(222		)	424			(199		)
Income tax benefit (expense) related to items of other comprehensive loss	—			—			(1		)	1			—
Other comprehensive loss, net of tax	(199		)	(202		)	(223		)	425			(199		)
Total comprehensive income (loss)	$	(82	)	$	356		$	(210	)	$	(146	)	$	(82	)

Condensed Cash Flow Statement

Condensed Consolidating Statement of Cash Flows
For the nine months ended March 30, 2018
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	(130	)	$	405		$	3,284		$	(217	)	$	3,342
Cash flows from investing activities
Purchases of property, plant and equipment	—			(162		)	(481		)	—			(643		)
Proceeds from the sale of property, plant and equipment	—			—			24			—			24
Acquisitions, net of cash acquired	—			(93		)	(6		)	—			(99		)
Purchases of investments	—			(11		)	(55		)	—			(66		)
Proceeds from sale of investments	—			—			39			—			39
Proceeds from maturities of investments	—			—			16			—			16
Notes receivable issuances to Flash Ventures	—			—			(1,015		)	—			(1,015		)
Notes receivable proceeds from Flash Ventures	—			—			308			—			308
Strategic investments and other, net	—			(1		)	31			—			30
Intercompany loan from consolidated affiliates	3,295			—			—			(3,295		)	—
Advances from (to) parent and consolidated affiliates	(47		)	47			—			—			—
Net cash provided by (used in) investing activities	3,248			(220		)	(1,139		)	(3,295		)	(1,406		)
Cash flows from financing activities
Issuance of stock under employee stock plans	146			—			—			—			146
Taxes paid on vested stock awards under employee stock plans	(164		)	—			—			—			(164		)
Repurchases of common stock	(155		)	—			—			—			(155		)
Dividends paid to shareholders	(443		)	—			—			—			(443		)
Settlement of debt hedge contracts	28			—			—			—			28
Repayment of debt and premiums	(14,581		)	—			—			—			(14,581		)
Proceeds from debt	11,384			—			—			—			11,384
Proceeds from revolving credit facility	500			—			—			—			500
Debt issuance costs	(52		)	—			—			—			(52		)
Intercompany loan to consolidated affiliates	—			(205		)	(3,090		)	3,295			—
Change in investment in consolidated subsidiaries	319			(463		)	(73		)	217			—
Net cash used in financing activities	(3,018		)	(668		)	(3,163		)	3,512			(3,337		)
Effect of exchange rate changes on cash	—			—			10			—			10
Net increase (decrease) in cash and cash equivalents	100			(483		)	(1,008		)	—			(1,391		)
Cash and cash equivalents, beginning of year	18			1,212			5,124			—			6,354
Cash and cash equivalents, end of period	$	118		$	729		$	4,116		$	—		$	4,963

Condensed Consolidating Statement of Cash Flows
For the nine months ended March 31, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	(443	)	$	617		$	2,177		$	147		$	2,498
Cash flows from investing activities
Purchases of property, plant and equipment	—			(185		)	(268		)	—			(453		)
Proceeds from the sale of property, plant and equipment	—			—			21			—			21
Purchases of investments	—			—			(274		)	—			(274		)
Proceeds from sale of investments	—			—			75			—			75
Proceeds from maturities of investments	—			—			430			—			430
Investments in Flash Ventures	—			—			(20		)	—			(20		)
Notes receivable issuances to Flash Ventures	—			—			(480		)	—			(480		)
Notes receivable proceeds from Flash Ventures	—			—			276			—			276
Strategic investments and other, net	—			—			(21		)	—			(21		)
Intercompany loans from (to) consolidated affiliates	995			(258		)	—			(737		)	—
Advances from (to) consolidated affiliates	244			(236		)	—			(8		)	—
Net cash provided by (used in) investing activities	1,239			(679		)	(261		)	(745		)	(446		)
Cash flows from financing activities
Issuance of stock under employee stock plans	123			—			—			—			123
Taxes paid on vested stock awards under employee stock plans	(111		)	—			—			—			(111		)
Excess tax benefits from employee stock plans	90			—			—			—			90
Proceeds from acquired call option	—			—			61			—			61
Dividends paid to shareholders	(428		)	—			—			—			(428		)
Repayment of debt and premiums	(8,692		)	(2,995		)	(492		)	—			(12,179		)
Proceeds from revolving credit facility	—			—			—			—			—
Proceeds from debt	7,908			—			—			—			7,908
Debt issuance costs	(10		)	—			—			—			(10		)
Intercompany loan to consolidated affiliates	298			(5,966		)	4,931			737			—
Change in investment in consolidated subsidiaries	296			8,673			(8,830		)	(139		)	—
Net cash used in financing activities	(526		)	(288		)	(4,330		)	598			(4,546		)
Effect of exchange rate changes on cash	—			—			(5		)	—			(5		)
Net increase (decrease) in cash and cash equivalents	270			(350		)	(2,419		)	—			(2,499		)
Cash and cash equivalents, beginning of year	—			1,206			6,945			—			8,151
Cash and cash equivalents, end of period	$	270		$	856		$	4,526		$	—		$	5,652