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Separate Financial Information of Guarantor Subsidiaries (Tables)
3 Months Ended
Oct. 04, 2019
Condensed Financial Information Disclosure [Abstract]  
Condensed Balance Sheet
Condensed Consolidating Balance Sheet
As of October 4, 2019
 
 
 
 
 
 
 
 
 
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
Company
 
(in millions)
ASSETS
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
7

 
$
579

 
$
2,662

 
$

 
$
3,248

Accounts receivable, net

 
1,031

 
417

 

 
1,448

Intercompany receivables
2,514

 
6,248

 
1,738

 
(10,500
)
 

Inventories

 
797

 
2,602

 
(112
)
 
3,287

Loans due from consolidated affiliates

 

 
58

 
(58
)
 

Other current assets

 
263

 
254

 

 
517

Total current assets
2,521

 
8,918

 
7,731

 
(10,670
)
 
8,500

Property, plant and equipment, net

 
857

 
1,939

 

 
2,796

Notes receivable and investments in Flash Ventures

 

 
2,629

 

 
2,629

Goodwill

 
390

 
9,700

 

 
10,090

Other intangible assets, net

 
19

 
1,495

 

 
1,514

Investments in consolidated subsidiaries
20,616

 
15,884

 

 
(36,500
)
 

Loans due from consolidated affiliates

 
1,164

 

 
(1,164
)
 

Other non-current assets
58

 
237

 
456

 

 
751

Total assets
$
23,195

 
$
27,469

 
$
23,950

 
$
(48,334
)
 
$
26,280

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$

 
$
166

 
$
1,558

 
$

 
$
1,724

Accounts payable to related parties

 
42

 
465

 

 
507

Intercompany payables
2,067

 
3,702

 
4,731

 
(10,500
)
 

Accrued expenses
174

 
689

 
511

 

 
1,374

Accrued compensation

 
263

 
169

 

 
432

Loans due to consolidated affiliates

 
58

 

 
(58
)
 

Current portion of long-term debt
251

 

 

 

 
251

Total current liabilities
2,492

 
4,920

 
7,434

 
(10,558
)
 
4,288

Long-term debt
9,927

 

 
34

 

 
9,961

Loans due to consolidated affiliates
1,141

 

 
23

 
(1,164
)
 

Other liabilities
69

 
1,853

 
543

 

 
2,465

Total liabilities
13,629

 
6,773

 
8,034

 
(11,722
)
 
16,714

Total shareholders’ equity
9,566

 
20,696

 
15,916

 
(36,612
)
 
9,566

Total liabilities and shareholders’ equity
$
23,195

 
$
27,469

 
$
23,950

 
$
(48,334
)
 
$
26,280


Condensed Consolidating Balance Sheet
As of June 28, 2019
 
 
 
 
 
 
 
 
 
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
Company
 
(in millions)
ASSETS
Current assets:

 

 

 

 

Cash and cash equivalents
$
8

 
$
985

 
$
2,462

 
$

 
$
3,455

Accounts receivable, net

 
779

 
425

 

 
1,204

Intercompany receivables
2,409

 
5,808

 
1,581

 
(9,798
)
 

Inventories

 
990

 
2,438

 
(145
)
 
3,283

Loans due from consolidated affiliates

 

 
50

 
(50
)
 

Other current assets
2

 
251

 
282

 

 
535

Total current assets
2,419

 
8,813

 
7,238

 
(9,993
)
 
8,477

Property, plant and equipment, net

 
873

 
1,970

 

 
2,843

Notes receivable and investments in Flash Ventures

 

 
2,791

 

 
2,791

Goodwill

 
388

 
9,688

 

 
10,076

Other intangible assets, net

 
23

 
1,688

 

 
1,711

Investments in consolidated subsidiaries
20,772

 
16,355

 

 
(37,127
)
 

Loans due from consolidated affiliates

 
674

 

 
(674
)
 

Other non-current assets
60

 
51

 
361

 

 
472

Total assets
$
23,251

 
$
27,177

 
$
23,736

 
$
(47,794
)
 
$
26,370

 
 
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:

 

 

 

 

Accounts payable
$

 
$
195

 
$
1,372

 
$

 
$
1,567

Accounts payable to related parties

 

 
331

 

 
331

Intercompany payables
1,871

 
3,515

 
4,412

 
(9,798
)
 

Accrued expenses
195

 
522

 
579

 

 
1,296

Accrued compensation

 
214

 
133

 

 
347

Loans due to consolidated affiliates

 
50

 

 
(50
)
 

Current portion of long-term debt
276

 

 

 

 
276

Total current liabilities
2,342

 
4,496

 
6,827

 
(9,848
)
 
3,817

Long-term debt
10,213

 

 
33

 

 
10,246

Loans due to consolidated affiliates
674

 

 

 
(674
)
 

Other liabilities
55

 
1,795

 
490

 

 
2,340

Total liabilities
13,284

 
6,291

 
7,350

 
(10,522
)
 
16,403

Total shareholders’ equity
9,967

 
20,886

 
16,386

 
(37,272
)
 
9,967

Total liabilities and shareholders’ equity
$
23,251

 
$
27,177

 
$
23,736

 
$
(47,794
)
 
$
26,370



Condensed Income Statement

Condensed Consolidating Statement of Operations
For the three months ended October 4, 2019
 
 
 
 
 
 
 
 
 
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
Company
 
(in millions)
Revenue, net
$

 
$
3,361

 
$
3,984

 
$
(3,305
)
 
$
4,040

Cost of revenue

 
2,952

 
3,690

 
(3,360
)
 
3,282

Gross profit

 
409

 
294

 
55

 
758

Operating expenses:

 

 

 

 

Research and development

 
364

 
210

 

 
574

Selling, general and administrative
1

 
203

 
101

 

 
305

Intercompany operating expense (income)
3

 
(425
)
 
422

 

 

Employee termination, asset impairment, and other charges

 

 
8

 

 
8

Total operating expenses
4

 
142

 
741

 

 
887

Operating income (loss)
(4
)
 
267

 
(447
)
 
55

 
(129
)
Interest and other income (expense):

 

 

 

 

Interest income

 
12

 
10

 
(10
)
 
12

Interest expense
(131
)
 

 
(1
)
 
10

 
(122
)
Other income, net

 

 
2

 

 
2

Total interest and other income (expense), net
(131
)
 
12

 
11

 

 
(108
)
Income (loss) before taxes
(135
)
 
279

 
(436
)
 
55

 
(237
)
Equity in earnings from subsidiaries
(164
)
 
(460
)
 

 
624

 

Income tax expense (benefit)
(23
)
 
39

 
23

 

 
39

Net loss
$
(276
)
 
$
(220
)
 
$
(459
)
 
$
679

 
$
(276
)

Condensed Consolidating Statement of Operations
For the three months ended September 28, 2018
 
 
 
 
 
 
 
 
 
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
Company
 
(in millions)
Revenue, net
$

 
$
3,485

 
$
4,996

 
$
(3,453
)
 
$
5,028

Cost of revenue

 
3,005

 
3,824

 
(3,465
)
 
3,364

Gross profit

 
480

 
1,172

 
12

 
1,664

Operating expenses:

 

 

 

 

Research and development

 
363

 
213

 

 
576

Selling, general and administrative
1

 
251

 
104

 

 
356

Intercompany operating expense (income)

 
(407
)
 
407

 

 

Employee termination, asset impairment, and other charges

 
32

 
14

 

 
46

Total operating expenses
1

 
239

 
738

 

 
978

Operating income (loss)
(1
)
 
241

 
434

 
12

 
686

Interest and other income (expense):

 

 

 

 

Interest income
8

 
3

 
12

 
(8
)
 
15

Interest expense
(116
)
 
(6
)
 
(2
)
 
8

 
(116
)
Other income (expense), net
1

 

 
(1
)
 
(2
)
 
(2
)
Total interest and other income (expense), net
(107
)
 
(3
)
 
9

 
(2
)
 
(103
)
Income (loss) before taxes
(108
)
 
238

 
443

 
10

 
583

Equity in earnings from subsidiaries
475

 
345

 

 
(820
)
 

Income tax expense (benefit)
(144
)
 
118

 
98

 

 
72

Net income
$
511

 
$
465

 
$
345

 
$
(810
)
 
$
511



Condensed Statement of Comprehensive Income

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the three months ended October 4, 2019
 
 
 
 
 
 
 
 
 
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
Company
 
(in millions)
Net loss
$
(276
)
 
$
(220
)
 
$
(459
)
 
$
679

 
$
(276
)
Other comprehensive loss, before tax:

 

 

 

 

Actuarial pension gain
1

 
1

 
1

 
(2
)
 
1

Foreign currency translation adjustment
5

 
5

 
5

 
(10
)
 
5

Net unrealized loss, on derivative contracts and available-for-sale securities
(33
)
 
(8
)
 
(9
)
 
17

 
(33
)
Total other comprehensive loss, before tax
(27
)
 
(2
)
 
(3
)
 
5

 
(27
)
Income tax benefit (expense) related to items of other comprehensive loss
5

 
(1
)
 
(1
)
 
2

 
5

Other comprehensive loss, net of tax
(22
)
 
(3
)
 
(4
)
 
7

 
(22
)
Total comprehensive loss
$
(298
)
 
$
(223
)
 
$
(463
)
 
$
686

 
$
(298
)



Condensed Consolidating Statement of Comprehensive Income (Loss)
For the three months ended September 28, 2018
 
 
 
 
 
 
 
 
 
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
Company
 
(in millions)
Net income
$
511

 
$
465

 
$
345

 
$
(810
)
 
$
511

Other comprehensive loss, before tax:

 

 

 

 

Foreign currency translation adjustment
(37
)
 
(34
)
 
(34
)
 
68

 
(37
)
Net unrealized loss, on derivative contracts and available-for-sale securities
(1
)
 
(8
)
 
(10
)
 
18

 
(1
)
Total other comprehensive loss, before tax
(38
)
 
(42
)
 
(44
)
 
86

 
(38
)
Income tax benefit related to items of other comprehensive loss
1

 

 
1

 
(1
)
 
1

Other comprehensive loss, net of tax
(37
)
 
(42
)
 
(43
)
 
85

 
(37
)
Total comprehensive income
$
474

 
$
423

 
$
302

 
$
(725
)
 
$
474



Condensed Cash Flow Statement
Condensed Consolidating Statement of Cash Flows
For the three months ended October 4, 2019
 
 
 
 
 
 
 
 
 
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Total
Company
 
(in millions)
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
(178
)
 
$
204

 
$
200

 
$
27

 
$
253

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment

 
(46
)
 
(99
)
 

 
(145
)
Acquisitions, net of cash acquired

 
(2
)
 
(20
)
 

 
(22
)
Notes receivable issuances to Flash Ventures

 

 
(171
)
 

 
(171
)
Notes receivable proceeds from Flash Ventures

 

 
357

 

 
357

Strategic investments and other, net

 

 
15

 

 
15

Intercompany loan from (to) consolidated affiliates

 
(490
)
 
(8
)
 
498

 

Advances from (to) parent and consolidated affiliates
126

 
(126
)
 

 

 

Net cash provided by (used in) investing activities
126

 
(664
)
 
74

 
498

 
34

Cash flows from financing activities

 

 

 

 

Issuance of stock under employee stock plans
26

 

 

 

 
26

Taxes paid on vested stock awards under employee stock plans
(52
)
 

 

 

 
(52
)
Dividends paid to shareholders
(147
)
 

 

 

 
(147
)
Repayment of debt
(319
)
 

 

 

 
(319
)
Intercompany loan from (to) consolidated affiliates
467

 
8

 
23

 
(498
)
 

Change in investment in consolidated subsidiaries
76

 
46

 
(95
)
 
(27
)
 

Net cash provided by (used in) financing activities
51

 
54

 
(72
)
 
(525
)
 
(492
)
Effect of exchange rate changes on cash

 

 
(2
)
 

 
(2
)
Net increase (decrease) in cash and cash equivalents
(1
)
 
(406
)
 
200

 

 
(207
)
Cash and cash equivalents, beginning of year
8

 
985

 
2,462

 

 
3,455

Cash and cash equivalents, end of period
$
7

 
$
579

 
$
2,662

 
$

 
$
3,248


Condensed Consolidating Statement of Cash Flows
For the three months ended September 28, 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
$
(101
)
 
$
(691
)
 
$
1,244

 
$
253

 
$
705

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment

 
(63
)
 
(214
)
 

 
(277
)
Purchases of investments

 
(2
)
 
(9
)
 

 
(11
)
Proceeds from sale of investments

 

 
6

 

 
6

Proceeds from maturities of investments

 

 
3

 

 
3

Notes receivable issuances to Flash Ventures

 

 
(115
)
 

 
(115
)
Notes receivable proceeds from Flash Ventures

 

 
144

 

 
144

Strategic investments and other, net

 

 
(9
)
 

 
(9
)
Intercompany loan from (to) consolidated affiliates
696

 

 

 
(696
)
 

Advances from (to) parent and consolidated affiliates
97

 
(97
)
 

 

 

Net cash provided by (used in) investing activities
793

 
(162
)
 
(194
)
 
(696
)
 
(259
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
Issuance of stock under employee stock plans
8

 

 

 

 
8

Taxes paid on vested stock awards under employee stock plans
(66
)
 

 

 

 
(66
)
Repurchases of common stock
(563
)
 

 

 

 
(563
)
Dividends paid to shareholders
(148
)
 

 

 

 
(148
)
Repayment of debt
(38
)
 

 

 

 
(38
)
Intercompany loan from (to) consolidated affiliates

 
(180
)
 
(516
)
 
696

 

Change in investment in consolidated subsidiaries
80

 
1,426

 
(1,253
)
 
(253
)
 

Net cash provided by (used in) financing activities
(727
)
 
1,246

 
(1,769
)
 
443

 
(807
)
Effect of exchange rate changes on cash

 

 
2

 

 
2

Net increase (decrease) in cash and cash equivalents
(35
)
 
393

 
(717
)
 

 
(359
)
Cash and cash equivalents, beginning of year
40

 
668

 
4,297

 

 
5,005

Cash and cash equivalents, end of period
$
5

 
$
1,061

 
$
3,580

 
$

 
$
4,646