10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 30, 2016

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from:                      to                     

Commission File Number 001-31560

SEAGATE TECHNOLOGY PUBLIC LIMITED COMPANY

(Exact name of registrant as specified in its charter)

Ireland	98-0648577
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

38/39 Fitzwilliam Square

Dublin 2, Ireland

(Address of principal executive offices)

Telephone: (353) (1) 234-3136

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer:	☒	Accelerated filer:	☐
Non-accelerated filer:	☐  (Do not check if a smaller reporting company)	Smaller reporting company:	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

As of January 23, 2017, 295,176,874 of the registrant’s ordinary shares, par value $0.00001 per share, were issued and outstanding.

INDEX

SEAGATE TECHNOLOGY PLC

		PAGE NO.
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements		3
	Condensed Consolidated Balance Sheets — December 30, 2016 (Unaudited) and July 1, 2016		3
	Condensed Consolidated Statements of Operations — Three and Six Months ended December 30, 2016 and January 1, 2016 (Unaudited)		4
	Condensed Consolidated Statements of Comprehensive Income — Three and Six Months ended December 30, 2016 and January 1, 2016 (Unaudited)		5
	Condensed Consolidated Statements of Cash Flows — Six Months ended December 30, 2016 and January 1, 2016 (Unaudited)		6
	Condensed Consolidated Statement of Shareholders’ Equity — Six Months ended December 30, 2016 (Unaudited)		7
	Notes to Condensed Consolidated Financial Statements (Unaudited)		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		36
Item 4.	Controls and Procedures		37
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings		38
Item 1A.	Risk Factors		38
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		38
Item 3.	Defaults Upon Senior Securities		38
Item 4.	Mine Safety Disclosures		38
Item 5.	Other Information		38
Item 6.	Exhibits		39
	SIGNATURES		40

2

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SEAGATE TECHNOLOGY PLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

	December 30, 2016			July 1, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	1,716		$	1,125
Short-term investments		—			6
Accounts receivable, net		1,211			1,318
Inventories		1,008			868
Other current assets		205			216
Total current assets		4,140			3,533
Property, equipment and leasehold improvements, net		2,012			2,160
Goodwill		1,237			1,237
Other intangible assets, net		364			448
Deferred income taxes		614			616
Other assets, net		194			219
Total Assets	$	8,561		$	8,213
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,631		$	1,517
Accrued employee compensation		254			184
Accrued warranty		114			104
Accrued expenses		682			444
Total current liabilities		2,681			2,249
Long-term accrued warranty		108			102
Long-term accrued income taxes		13			14
Other non-current liabilities		143			164
Long-term debt		4,093			4,091
Total Liabilities		7,038			6,620
Commitments and contingencies (See Notes 12 and 14)
Shareholders’ Equity:
Ordinary shares and additional paid-in capital		6,049			5,929
Accumulated other comprehensive loss		(33	)		(25	)
Accumulated deficit		(4,493	)		(4,311	)
Total Equity		1,523			1,593
Total Liabilities and Equity	$	8,561		$	8,213

The information as of July 1, 2016 was derived from the Company’s audited Consolidated Balance Sheet as of July 1, 2016.

See Notes to Condensed Consolidated Financial Statements.

3

SEAGATE TECHNOLOGY PLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	December 30, 2016			January 1, 2016			December 30, 2016			January 1, 2016
Revenue	$	2,894		$	2,986		$	5,691		$	5,911
Cost of revenue		2,003			2,245			3,999			4,482
Product development		305			304			620			632
Marketing and administrative		155			160			308			341
Amortization of intangibles		28			31			57			65
Restructuring and other, net		33			17			115			76
Total operating expenses		2,524			2,757			5,099			5,596
Income from operations		370			229			592			315
Interest income		1			1			2			2
Interest expense		(50	)		(48	)		(100	)		(95	)
Other, net		(11	)		(2	)		(11	)		(11	)
Other expense, net		(60	)		(49	)		(109	)		(104	)
Income before income taxes		310			180			483			211
Provision for income taxes		13			15			19			13
Net income	$	297		$	165		$	464		$	198
Net income per share:
Basic	$	1.00		$	0.55		$	1.56		$	0.66
Diluted		1.00			0.55			1.55			0.65
Number of shares used in per share calculations:
Basic		296			299			297			301
Diluted		298			301			299			304
Cash dividends declared per ordinary share	$	0.63		$	0.63		$	1.26		$	1.17

See Notes to Condensed Consolidated Financial Statements.

4

SEAGATE TECHNOLOGY PLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	December 30, 2016			January 1, 2016			December 30, 2016			January 1, 2016
Net income	$	297		$	165		$	464		$	198
Other comprehensive income (loss), net of tax:
Cash flow hedges
Change in net unrealized (loss) gain on cash flow hedges		(2	)		—			(3	)		(2	)
Less: reclassification for amounts included in net income		—			1			1			2
Net change		(2	)		1			(2	)		—
Marketable securities
Change in net unrealized gain (loss) on marketable securities		—			—			—			—
Less: reclassification for amounts included in net income		—			—			—			—
Net change		—			—			—			—
Post-retirement plans
Change in unrealized gain (loss) on post-retirement plans		—			—			—			1
Less: reclassification for amounts included in net income		—			—			—			—
Net change		—			—			—			1
Foreign currency translation adjustments		(7	)		(3	)		(6	)		(3	)
Total other comprehensive income (loss), net of tax		(9	)		(2	)		(8	)		(2	)
Comprehensive income	$	288		$	163		$	456		$	196

See Notes to Condensed Consolidated Financial Statements.

5

SEAGATE TECHNOLOGY PLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	For the Six Months Ended
	December 30, 2016			January 1, 2016
OPERATING ACTIVITIES
Net income	$	464		$	198
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		391			417
Share-based compensation		73			65
Impairment of long-lived assets		9			—
Deferred income taxes		3			—
Other non-cash operating activities, net		18			11
Changes in operating assets and liabilities:
Accounts receivable, net		110			384
Inventories		(140	)		(32	)
Accounts payable		170			257
Accrued employee compensation		70			(87	)
Accrued expenses, income taxes and warranty		69			(5	)
Other assets and liabilities		10			(2	)
Net cash provided by operating activities		1,247			1,206
INVESTING ACTIVITIES
Acquisition of property, equipment and leasehold improvements		(235	)		(346	)
Proceeds from the sale of property and equipment		(1	)		—
Maturities of short-term investments		6			—
Cash used in acquisition of business, net of cash acquired		—			(634	)
Other investing activities, net		(4	)		—
Net cash used in investing activities		(234	)		(980	)
FINANCING ACTIVITIES
Redemption and repurchase of debt		—			(15	)
Taxes paid related to net share settlement of equity awards		(24	)		(54	)
Repurchases of ordinary shares		(248	)		(1,061	)
Dividends to shareholders		(188	)		(351	)
Proceeds from issuance of ordinary shares under employee stock plans		47			41
Other financing activities, net		—			(4	)
Net cash used in financing activities		(413	)		(1,444	)
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash		(12	)		(3	)
Increase (decrease) in cash, cash equivalents, and restricted cash		588			(1,221	)
Cash, cash equivalents, and restricted cash at the beginning of the period		1,132			2,486
Cash, cash equivalents, and restricted cash at the end of the period	$	1,720		$	1,265

See Notes to Condensed Consolidated Financial Statements.

6

SEAGATE TECHNOLOGY PLC

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

For the Six Months Ended December 30, 2016

(In millions)

(Unaudited)

	Number of Ordinary Shares			Par Value of Shares		Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Accumulated Deficit			Total
Balance at July 1, 2016		299		$	—	$	5,929	$	(25	)	$	(4,311	)	$	1,593
Net income												464			464
Other comprehensive loss									(8	)					(8	)
Issuance of ordinary shares under employee stock plans		4					47								47
Repurchases of ordinary shares		(7	)									(248	)		(248	)
Tax withholding related to vesting of restricted stock units		(1	)									(24	)		(24	)
Dividends to shareholders												(374	)		(374	)
Share-based compensation							73								73
Balance at December 30, 2016		295		$	—	$	6,049	$	(33	)	$	(4,493	)	$	1,523

See Notes to Condensed Consolidated Financial Statements.

7

SEAGATE TECHNOLOGY PLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation and Summary of Significant Accounting Policies

Organization

Seagate Technology plc (the “Company” or “Seagate”) is a leading provider of electronic data storage technology and solutions. Its principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, it produces a broad range of electronic data storage products including solid state hybrid drives (“SSHD”), solid state drives (“SSD”), PCIe cards and SATA controllers. Its storage technology portfolio also includes storage subsystems, and high performance computing (“HPC”) solutions.

Hard disk drives are devices that store digitally encoded data on rapidly rotating disks with magnetic surfaces. Disk drives continue to be the primary medium of mass data storage due to their performance attributes, high quality and cost effectiveness. Complementing existing data center storage architecture, solid-state storage devices use integrated circuit assemblies as memory to store data, and most SSDs use NAND-based flash memory. In addition to HDDs and SSDs, SSHDs combine the features of SSDs and HDDs in the same unit, containing a large hard disk drive and an SSD cache to improve performance of frequently accessed data.

The Company’s products are designed for mission critical and nearline applications in enterprise servers and storage systems; client compute applications, where its products are designed primarily for desktop and mobile computing; and client non-compute applications, where its products are designed for a wide variety of end user devices such as digital video recorders (“DVRs”), personal data backup systems, portable external storage systems, digital media systems and surveillance systems.

The Company’s Cloud Systems and Solutions product portfolio builds on the Seagate legacy to extend innovation from the device into the information infrastructure, onsite and in the cloud. This product portfolio includes HPC storage solutions, modular original equipment manufacturers (“OEM”) storage systems and scale-out storage systems.

Basis of Presentation and Consolidation

The 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. generally accepted accounting principles 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 condensed consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the condensed consolidated financial position, results of operations, comprehensive income, cash flows and shareholders’ equity for the periods presented. Such adjustments are of a normal and recurring nature. Certain prior period amounts reported in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation.

The Company’s Consolidated Financial Statements for the fiscal year ended July 1, 2016, are included in its Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (“SEC”) on August 5, 2016. The Company believes that the disclosures included in the unaudited condensed consolidated financial statements, when read in conjunction with its Consolidated Financial Statements as of July 1, 2016, 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 30, 2016, are not necessarily indicative of the results of operations to be expected for any subsequent interim period in the Company’s fiscal year ending June 30, 2017. The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Both the three and six months ended December 30, 2016 and the three and six months ended January 1, 2016 consisted of 13 weeks and 26 weeks, respectively. Fiscal year 2017 will be comprised of 52 weeks and will end on June 30, 2017. The fiscal quarters ended December 30, 2016, September 30, 2016, and January 1, 2016, are also referred to herein as the “December 2016 quarter”, the “September 2016 quarter”, and the “December 2015 quarter”, respectively.

8

Summary of Significant Accounting Policies

There have been no significant changes in the Company’s significant accounting policies. Please refer to Note 1 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 July 1, 2016, as filed with the SEC on August 5, 2016 for a discussion of the Company’s other significant accounting policies.

Recently Issued Accounting Pronouncements

In May 2014, August 2015, April 2016, May 2016 and December 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09 (ASC Topic 606), Revenue from Contracts with Customers, ASU 2015-14 (ASC Topic 606) Revenue from Contracts with Customers, Deferral of the Effective Date, ASU 2016-10 (ASC Topic 606) Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing, ASU 2016-12 (ASC Topic 606) Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20 (ASC Topic 606) Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, respectively. ASC Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted for annual periods beginning after December 15, 2016, which is first quarter of fiscal 2018 for the Company. This standard may be applied retrospectively to all prior periods presented, or retrospectively with a cumulative adjustment to retained earnings in the year of adoption (“modified retrospective transition approach”). The Company is in the process of assessing the impact, if any, on its condensed consolidated financial statements and plans to adopt the modified retrospective transition approach.

In July 2015, the FASB issued ASU 2015-11 (ASC Topic 330), Inventory: Simplifying the Measurement of Inventory. The amendments in this ASU require inventory measurement at the lower of cost and net realizable value. The Company is required to adopt the guidance in the first quarter of fiscal 2018. Early adoption is permitted by all entities as of the beginning of an interim or annual reporting period. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01 (ASC Subtopic 825-10), Financial Instruments—Overall Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU require entities to measure all investments in equity securities at fair value with changes recognized through net income. This requirement does not apply to investments that qualify for the equity method of accounting, to those that result in consolidation of the investee, or for which the entity meets a practicability exception to fair value measurement. Additionally, the amendments eliminate certain disclosure requirements related to financial instruments measured at amortized cost and add disclosures related to the measurement categories of financial assets and financial liabilities. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted for only certain portions of the ASU. The Company is in the process of assessing the impact, if any, on its condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02 (ASC Topic 842), Leases. The ASU amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The Company is required to adopt the guidance in the first quarter of fiscal 2020. Early adoption is permitted. The Company is in the process of assessing the impact on its condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09 (ASC Topic 718), Stock Compensation—Improvements to Employee Share-Based Payment Accounting. The amendments in this ASU are intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax consequences, classification on the consolidated statement of cash flows and treatment of forfeitures. The Company is required to adopt the guidance in the first quarter of fiscal 2018. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15 (ASC Topic 230), Statement of Cash Flows—Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU are intended to clarify how certain cash receipts and cash payment are presented and classified in the statement of cash flows. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16 (ASC Topic 740), Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory. The amendments in this ASU require the recognition of the income tax consequences for intra-entity transfers of assets other than inventory when the transfer occurs. Under current GAAP, current and deferred income taxes for intra-entity asset transfers are not recognized until the asset has been sold to an outside party. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

9

In January 2017, the FASB issued ASU 2017-01 (ASC Topic 805), Business Combination: Clarifying the Definition of a Business. The amendments in this ASU change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

Recently Adopted Accounting Pronouncements

In April 2015 and August 2015, the FASB issued ASU 2015-03 (ASC Subtopic 835-30), Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15 (ASC Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, respectively. The ASUs require that debt issuance costs related to a recognized debt liability, with the exception of those related to line-of-credit arrangements, be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 became effective and was adopted by the Company in the September 2016 quarter on a retrospective basis. The adoption of this guidance resulted in a reduction to Other assets, net and Long-term debt by $39 million, within the Consolidated Balance Sheet as of July 1, 2016. ASU 2015-15 became effective and was adopted by the Company in the September 2016 quarter on a prospective basis with no material impact on the Company’s condensed consolidated financial statements and disclosures.

In September 2015, the FASB issued ASU 2015-16 (ASC Topic 805), Business Combinations Simplifying the Accounting for Measurement-Period Adjustments. The amendments in this update require that an acquirer recognize measurement period adjustments in the period in which the adjustments are determined. The income effects of such measurement period adjustments are to be recorded in the same period’s financial statements but calculated as if the accounting had been completed as of the acquisition date. The impact of measurement period adjustments to earnings that relate to prior period financial statements are to be presented separately on the income statement or disclosed by line item. The amendments in this update are for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015. This ASU became effective and was adopted by the Company in the September 2016 quarter on a prospective basis with no material impact on the Company’s condensed consolidated financial statements and disclosures.

In November 2016, the FASB issued ASU 2016-18 (ASC Topic 230), Statement of Cash Flows: Restricted Cash. The amendments in this update provide guidance on the classification and presentation of changes in restricted cash on the statement of cash flows. The ASU requires amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the total beginning and ending balances for the periods presented on the statement of cash flows. The amendments in this update are for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. The Company elected to adopt this ASU in the December 2016 quarter on a retrospective basis with no material impact on the Company’s condensed consolidated financial statements and disclosures. The Company classifies restricted cash within Other current assets in the condensed consolidated balance sheets.

2. Balance Sheet Information

Investments

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of December 30, 2016:

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale securities:
Money market funds	$	816	$	—	$	816
Certificates of deposit		3		—		3
Total	$	819	$	—	$	819
Included in Cash and cash equivalents					$	815
Included in Other current assets						4
Total					$	819

10

As of December 30, 2016, the Company’s Other current assets included $4 million in restricted cash and investments held as collateral at banks for various performance obligations.

As of December 30, 2016, the Company had no material available-for-sale securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined that no available-for-sale securities were other-than-temporarily impaired as of December 30, 2016.

The fair value and amortized cost of the Company’s investments classified as available-for-sale at December 30, 2016, by remaining contractual maturity were as follows:

(Dollars in millions)	Amortized Cost		Fair Value
Due in less than 1 year	$	819	$	819
Due in 1 to 5 years		—		—
Thereafter		—		—
Total	$	819	$	819

In the current quarter, the company reclassified demand deposits from certificates of deposit and money market funds to cash. The corresponding prior period amounts were reclassified to conform to the current period’s presentation. This reclassification did not result in any change to the cash and cash equivalents balance as reported in the Condensed Consolidated Balance Sheets and Statements of Cash Flows for all periods presented.

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of July 1, 2016:

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale securities:
Money market funds	$	232	$	—	$	232
Certificates of deposit		5		—		5
Corporate bonds		6		—		6
Total	$	243	$	—	$	243
Included in Cash and cash equivalents					$	230
Included in Short-term investments						6
Included in Other current assets						7
Total					$	243

As of July 1, 2016, the Company’s Other current assets included $7 million in restricted cash and investments held as collateral at banks for various performance obligations.

As of July 1, 2016, the Company had no material available-for-sale securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale securities were other-than-temporarily impaired as of July 1, 2016.

Cash, Cash Equivalents, and Restricted Cash

The following table provides a summary of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that reconciles to the corresponding amount in the Condensed Consolidated Statements of Cash Flows:

(Dollars in millions)	December 30, 2016		July 1, 2016		January 1, 2016		July 3, 2015
Cash and cash equivalents	$	1,716	$	1,125	$	1,258	$	2,479
Restricted cash included in Other current assets		4		7		7		7
Total cash, cash equivalents, and restricted cash shown in the Statements of Cash Flows	$	1,720	$	1,132	$	1,265	$	2,486

11

Inventories

The following table provides details of the inventory balance sheet item:

(Dollars in millions)	December 30, 2016		July 1, 2016
Raw materials and components	$	312	$	307
Work-in-process		362		297
Finished goods		334		264
	$	1,008	$	868

Property, Equipment and Leasehold Improvements, net

The components of property, equipment and leasehold improvements, net, were as follows:

(Dollars in millions)	December 30, 2016			July 1, 2016
Property, equipment and leasehold improvements	$	9,799		$	9,884
Accumulated depreciation and amortization		(7,787	)		(7,724	)
	$	2,012		$	2,160

Accrued expenses

The following table provides details of the accrued expenses balance sheet item:

(Dollars in millions)	December 30, 2016		July 1, 2016
Dividends payable	$	186	$	—
Other accrued expenses		496		444
Total	$	682	$	444

Accumulated Other Comprehensive Income (Loss) (“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 Marketable Securities (a)		Unrealized Gains (Losses) on Post- Retirement Plans			Foreign Currency Translation Adjustments			Total
Balance at July 1, 2016	$	(1	)	$	—	$	(7	)	$	(17	)	$	(25	)
Other comprehensive income (loss) before reclassifications		(3	)		—		—			(6	)		(9	)
Amounts reclassified from AOCI		1			—		—			—			1
Other comprehensive income (loss)		(2	)		—		—			(6	)		(8	)
Balance at December 30, 2016	$	(3	)	$	—	$	(7	)	$	(23	)	$	(33	)
Balance at July 3, 2015	$	1		$	—	$	(15	)	$	(16	)	$	(30	)
Other comprehensive income (loss) before reclassifications		(2	)		—		1			(3	)		(4	)
Amounts reclassified from AOCI		2			—		—			—			2
Other comprehensive income (loss)		—			—		1			(3	)		(2	)
Balance at January 1, 2016	$	1		$	—	$	(14	)	$	(19	)	$	(32	)

(a) The cost of a security sold or the amount reclassified out of AOCI into earnings was determined using specific identification.

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3. Debt

Short-Term Borrowings

The credit agreement entered into by the Company and its subsidiary Seagate HDD Cayman on January 18, 2011 and subsequently amended (the “Revolving Credit Facility”) provides the Company with a $700 million senior secured revolving credit facility. The term of the Revolving Credit Facility is through January 15, 2020, provided that if the Company does not have Investment Grade Ratings (as defined in the Revolving Credit Facility) on August 15, 2018, then the maturity date will be August 16, 2018 unless certain extension conditions have been satisfied. The loans made under the Revolving Credit Facility will bear interest at a rate of LIBOR plus a variable margin that will be determined based on the corporate credit rating of the Company. The Company and certain of its material subsidiaries fully and unconditionally guarantee the Revolving Credit Facility. The Revolving Credit Facility is available for cash borrowings, subject to compliance with certain covenants and other customary conditions to borrowing, and for the issuance of letters of credit up to a sub-limit of $75 million.

The Revolving Credit Facility, as amended, includes three financial covenants: (1) minimum cash, cash equivalents and marketable securities; (2) a fixed charge coverage ratio; and (3) a net leverage ratio. On April 27, 2016, the Revolving Credit Agreement was amended in order to increase the allowable net leverage ratio to allow for higher net leverage levels. The Company was in compliance with the modified covenants as of December 30, 2016 and expects to be in compliance for the next 12 months.

As of December 30, 2016, no borrowings had been drawn or letters of credit utilized under the Revolving Credit Facility.

Long-Term Debt

$800 million Aggregate Principal Amount of 3.75% Senior Notes due November 2018 (the “2018 Notes”). The interest on the 2018 Notes is payable semi-annually on May 15 and November 15 of each year. The issuer under the 2018 Notes is Seagate HDD Cayman, and the obligations under the 2018 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$600 million Aggregate Principal Amount of 7.00% Senior Notes due November 2021 (the “2021 Notes”). The interest on the 2021 Notes is payable semi-annually on January 1 and July 1 of each year. The issuer under the 2021 Notes is Seagate HDD Cayman, and the obligations under the 2021 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$1 billion Aggregate Principal Amount of 4.75% Senior Notes due June 2023 (the “2023 Notes”). The interest on the 2023 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2023 Notes is Seagate HDD Cayman, and the obligations under the 2023 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$1 billion Aggregate Principal Amount of 4.75% Senior Notes due January 2025 (the “2025 Notes”). The interest on the 2025 Notes is payable semi-annually on January 1 and July 1 of each year. The issuer under the 2025 Notes is Seagate HDD Cayman, and the obligations under the 2025 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$700 million Aggregate Principal Amount of 4.875% Senior Notes due June 2027 (the “2027 Notes”). The interest on the Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2027 Notes is Seagate HDD Cayman, and the obligations under the 2027 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$500 million Aggregate Principal Amount of 5.75% Senior Notes due December 2034 (the “2034 Notes”). The interest on the 2034 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2034 Notes is Seagate HDD Cayman, and the obligations under the 2034 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

At December 30, 2016, future principal payments on long-term debt were as follows (in millions):

Fiscal Year	Amount
Remainder of 2017	$	—
2018		—
2019		800
2020		—
2021		—
Thereafter		3,333
Total	$	4,133

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4. Income Taxes

The Company recorded an income tax provision of $13 million and $19 million in the three and six months ended December 30, 2016. The income tax provision for the three and six months ended December 30, 2016 included less than $1 million of net discrete tax expense and approximately $4 million of net discrete tax benefits, respectively. These discrete items are primarily associated with the release of tax reserves due to the expiration of certain statutes of limitation and prior year tax adjustments.

The Company’s income tax provision recorded for the three and six months ended December 30, 2016 differed from the provision for income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax holidays or tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain deferred tax assets.

During the six months ended December 30, 2016, the Company’s unrecognized tax benefits excluding interest and penalties decreased by approximately $4 million to $66 million. The unrecognized tax benefits that, if recognized, would impact the effective tax rate were $66 million at December 30, 2016, subject to certain future valuation allowance reversals. During the 12 months beginning December 31, 2016, the Company expects that its unrecognized tax benefits could be reduced by approximately $12 million, primarily as a result of the expiration of certain statutes of limitation.

The Company recorded an income tax provision of $15 million and $13 million in the three and six months ended January 1, 2016. The income tax provision for the six months ended January 1, 2016 included approximately $3 million of net discrete tax benefits, primarily for the release of tax reserves due to the expiration of certain statutes of limitation.

The Company’s income tax provision recorded for the three and six months ended January 1, 2016 differed from the provision from income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax holidays or tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain U.S. deferred tax assets.

5. Acquisitions

Dot Hill Systems Corp.

On October 6, 2015, the Company acquired all of the outstanding shares of Dot Hill Systems Corp. (“Dot Hill”), a supplier of software and hardware storage systems. The Company paid $9.75 per share, or $674 million, in cash for the acquisition. The acquisition of Dot Hill further expands the Company’s OEM-focused cloud storage systems business and advances the Company’s strategic efforts.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:

(Dollars in millions)	Amount
Cash and cash equivalents	$	40
Accounts receivable, net		48
Inventories		21
Other current and non-current assets		7
Property, plant and equipment		10
Intangible assets		252
Goodwill		364
Total assets		742
Accounts payable, accrued expenses and other		(68	)
Total liabilities		(68	)
Total	$	674

The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized:

14

(Dollars in millions)	Fair Value		Weighted- Average Amortization Period
Existing technology	$	164		5.0 years
Customer relationships		71		7.0 years
Trade names		3		5.0 years
Total amortizable intangible assets acquired		238		5.5 years
In-process research and development		14
Total acquired identifiable intangible assets	$	252

The recognized goodwill, which is not deductible for income tax purposes, is primarily attributable to cost synergies expected to arise after the acquisition and the benefits the Company expects to derive from enhanced market opportunities.

LSI’s Flash Business

On September 2, 2014, the Company completed the acquisition of certain assets and liabilities of LSI Corporation’s (“LSI”) Accelerated Solutions Division and Flash Components Division (collectively, the “Flash Business”) from Avago Technologies Limited for $450 million in cash. The transaction is intended to strengthen Seagate’s strategy to deliver a full suite of storage solutions, providing Seagate with established enterprise PCIe flash and SSD controller capabilities to deliver solutions for the growing flash storage market.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:

(Dollars in millions)	Amount
Inventories	$	37
Property, plant and equipment		22
Intangible assets		141
Other assets		6
Goodwill		337
Total assets		543
Liabilities		(93	)
Total liabilities		(93	)
Total	$	450

The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the weighted-average period over which intangible assets within each category will be amortized:

(Dollars in millions)	Fair Value		Weighted- Average Amortization Period
Existing technology	$	84		3.5 years
Customer relationships		40		3.8 years
Trade names		17		4.5 years
Total acquired identifiable intangible assets	$	141		3.7 years

The goodwill recognized is primarily attributable to the benefits the Company expects to derive from enhanced market opportunities, and is not deductible for income tax purposes.

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6. Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the six months ended December 30, 2016, are as follows:

(Dollars in millions)	Amount
Balance at July 1, 2016	$	1,237
Goodwill acquired		—
Foreign currency translation effect		—
Balance at December 30, 2016	$	1,237

Other Intangible Assets

Other intangible assets consist primarily of existing technology, customer relationships, in-process research and development (“IPR&D”) and trade names acquired in business combinations. With the exception of IPR&D, acquired intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets. Amortization is charged to Operating expenses in the Condensed Consolidated Statements of Operations. IPR&D has been determined to have an indefinite useful life and is not amortized, but instead tested for impairment annually or more frequently if events or changes in circumstance indicate that the asset might be impaired. If the carrying amount of IPR&D exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. There were no impairment charges recognized for IPR&D. Upon completion of the IPR&D, the related assets will be accounted for as a finite-lived intangible asset, and will be amortized over its useful life.

The carrying value of other intangible assets subject to amortization as of December 30, 2016, is set forth in the following table:

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	297	$	(111	)	$	186		3.8 years
Customer relationships		510		(373	)		137		3.1 years
Trade name		29		(18	)		11		2.3 years
Other intangible assets		29		(13	)		16		3.0 years
Total amortizable other intangible assets	$	865	$	(515	)	$	350		3.4 years

The carrying value of IPR&D not subject to amortization was $14 million as of December 30, 2016.

The carrying value of other intangible assets subject to amortization as of July 1, 2016 is set forth in the following table:

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	297	$	(79	)	$	218		4.1 years
Customer relationships		510		(328	)		182		3.2 years
Trade name		29		(14	)		15		2.6 years
Other intangible assets		29		(10	)		19		3.2 years
Total amortizable other intangible assets	$	865	$	(431	)	$	434		3.6 years

The carrying value of IPR&D not subject to amortization was $14 million on July 1, 2016.

For the three and six months ended December 30, 2016, the amortization expense of other intangible assets was $42 million and $84 million, respectively. For the three and six months ended January 1, 2016, the amortization expense of other intangible assets was $46 million and $87 million, respectively. As of December 30, 2016, expected amortization expense for other intangible assets for each of the next five fiscal years and thereafter is as follows:

16

(Dollars in millions)	Amount
Remainder of 2017	$	82
2018		106
2019		68
2020		50
2021		23
Thereafter		21
Total	$	350

7. Restructuring and Exit Costs

For the three and six months ended December 30, 2016, the Company recorded restructuring charges of approximately $33 million and $115 million, respectively, comprised primarily of charges related to workforce reduction costs and facility exit costs associated with the restructuring of its workforce during the fiscal year. The Company’s significant restructuring plans are described below. All restructuring charges are reported in Restructuring and other, net on the Condensed Consolidated Statements of Operations.

July 2016 Plan - On July 11, 2016, the Company committed to a restructuring plan (the “July 2016 Plan”) for continued consolidation of its global footprint across Asia, EMEA and the Americas. The July 2016 Plan included reducing worldwide headcount by approximately 6,500 employees. The July 2016 Plan, is expected to be largely completed by the end of fiscal year 2017. For the three months ended December 30, 2016, the Company recorded total restructuring charges of approximately $9 million related to the July 2016 Plan, comprised of approximately $3 million of workforce reduction costs, $3 million of facility exit costs and $3 million of foreign currency remeasurement charges. For the six months ended December 30, 2016, the Company recorded total restructuring charges of approximately $82 million, comprised of approximately $75 million for workforce reduction costs, $4 million for facility exit costs, and $3 million of foreign currency remeasurement charges. For the three months ended December 30, 2016, the Company made cash payments of $15 million, comprised primarily of $12 million for workforce reduction costs and $3 million for facility exit costs related to the July 2016 Plan. For the six months ended December 30, 2016, the Company made cash payments of $19 million comprised primarily of $15 million for workforce reduction costs and $4 million for facility exit costs related to the July 2016 Plan.

June 2016 Plan - On June 27, 2016, the Company committed to a restructuring plan (the “June 2016 Plan”) as part of the Company’s efforts to reduce its cost structure to align with the then current macroeconomic conditions. The June 2016 Plan included reducing worldwide headcount by approximately 1,600 employees. The June 2016 Plan was largely completed by the fiscal quarter ended September 30, 2016. For the three and six months ended December 30, 2016, the Company recorded total restructuring charges of approximately $1 million and $1 million, respectively, and made cash payments of $3 million and $38 million, respectively, comprised primarily of workforce reduction costs related to the June 2016 Plan.

February 2016 Plan - On February 15, 2016, the Company committed to a restructuring plan (the “February 2016 Plan”) intended to align its manufacturing footprint with the then current macroeconomic conditions. The February 2016 Plan included reducing worldwide headcount by approximately 2,000 employees. The February 2016 Plan was largely completed by the fiscal quarter ended April 1, 2016. For the three months ended December 30, 2016, the Company did not record any material restructuring charges nor made any material cash payments related to the February 2016 Plan. For the six months ended December 30, 2016, the Company recorded total restructuring charges and made cash payments of $1 million comprised of facility exit costs related to the February 2016 Plan,

September 2015 Plan - On September 4, 2015, the Company committed to a restructuring plan (the “September 2015 Plan”) intended to realign its cost structure with the then current macroeconomic business environment. The September 2015 Plan included reducing worldwide headcount by approximately 1,000 employees. The September 2015 Plan was largely completed by the fiscal quarter ended January 1, 2016. For the three months ended December 30, 2016, the Company did not record any material restructuring charges. For the six months ended December 30, 2016, the Company recorded total restructuring charges of approximately $2 million. For the three and six months ended December 30, 2016, the Company made cash payments of approximately $1 million and $2 million, respectively, comprised primarily of facility exit costs related to the September 2015 Plan.

Other Restructuring and Exit Costs - For the three months ended December 30, 2016, the Company recorded total restructuring charges of approximately $23 million, comprised of approximately $20 million of workforce reduction costs and $3 million of facility exit costs. For the six months ended December 30, 2016, the Company recorded total restructuring charges of approximately $29 million, comprised of approximately $23 million of workforce reduction costs and $6 million of facility exit costs. For the three months ended December 30, 2016, the Company made cash payments of $11 million, comprised primarily of $4 million for workforce reduction costs and $7 million for facility exit costs. For the six months ended December 30, 2016, the Company made cash payments of $12 million, comprised primarily of $5 million for workforce reduction costs and $7 million for facility exit costs.

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8. 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. The Company enters into foreign currency forward exchange contracts in order to manage the foreign currency exchange rate risk on forecasted expenses denominated in foreign currencies. 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 in the Condensed Consolidated Balance Sheets at fair value. The changes in the fair value of the effective portions of designated cash flow hedges are recorded in Accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments and the ineffective portions of cash flow hedges are adjusted to fair value through earnings. The amounts of net unrealized loss on cash flow hedges were $3 million and $2 million as of December 30, 2016 and July 1, 2016, respectively.

The Company dedesignates its cash flow hedges when the forecasted hedged transactions are realized 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 Accumulated other comprehensive loss are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings. The Company did not recognize any net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three months ended December 30, 2016. As of December 30, 2016, the Company’s existing foreign currency forward exchange contracts mature within 12 months. The deferred amount currently recorded in Accumulated other comprehensive loss expected to be recognized into earnings over the next 12 months is immaterial.

The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of December 30, 2016 and July 1, 2016:

	As of December 30, 2016
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
Singapore Dollars	$	45	$	48
Thai Bhat		43		23
British Pound Sterling		37		—

	As of July 1, 2016
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
British Pound Sterling	$	47	$	10

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 liabilities. The Company pays a floating rate, based on LIBOR plus an interest rate spread, on the notional amount of the TRS. The TRS is designed to substantially offset changes in the SDCP liability due to changes in the value of the investment options made by employees. As of December 30, 2016, the notional investments underlying the TRS amounted to $100 million. The original contract term of the TRS was through January 2016, and was settled on a monthly basis, therefore limiting counterparty performance risk. The Company renewed the contract term through January 2018 under materially the same terms. 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 liabilities.

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The following tables show the Company’s derivative instruments measured at fair value as reflected in the Condensed Consolidated Balance Sheet as of December 30, 2016 and July 1, 2016:

	As of December 30, 2016
	Asset Derivatives				Liability Derivatives
(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	$	—		Accrued expenses	$	(4	)
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts		Other current assets		—		Accrued expenses		(1	)
Total return swap		Other current assets		—		Accrued expenses		—
Total derivatives			$	—			$	(5	)

	As of July 1, 2016
	Asset Derivatives				Liability Derivatives
(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	$	—		Accrued expenses	$	(2	)
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts		Other current assets		—		Accrued expenses		(1	)
Total return swap		Other current assets		3		Accrued expenses		—
Total derivatives			$	3			$	(3	)

The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statement of Comprehensive Income and the Condensed Consolidated Statement of Operations for the three and six months ended December 30, 2016:

(Dollars in millions) Derivatives Designated as Hedging Instruments	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)		Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a)
	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	$	(2	)	$	(3	)		Cost of revenue	$	—	$	(1	)		Cost of revenue	$	—	$	—

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative		Amount of Gain or (Loss) Recognized in Income on Derivative
			For the Three Months			For the Six Months
Foreign currency forward exchange contracts		Other, net	$	(2	)	$	(3	)
Total return swap		Operating expenses		1			4

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(a) The amount of gain or (loss) recognized in income represents $0 million related to the ineffective portion of the hedging relationships and $0 million related to the amount excluded from the assessment of hedge effectiveness for the three and six months ended December 30, 2016, respectively.

The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statement of Comprehensive Income and the Condensed Consolidated Statement of Operations for the three and six months ended January 1, 2016:

(Dollars in millions) Derivatives Designated as Hedging Instruments	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)					Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)						Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)		Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a)
	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	$	—	$	(2	)		Cost of revenue	$	(1	)	$	(2	)		Cost of revenue	$	—	$	—

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivatives		Amount of Gain or (Loss) Recognized in Income on Derivatives
			For the Three Months		For the Six Months
Foreign currency forward exchange contracts		Other, net	$	1	$	(4	)
Total return swap		Operating expenses		1		(4	)

(a) The amount of gain or (loss) recognized in income represents $0 million related to the ineffective portion of the hedging relationships and $0 million related to the amount excluded from the assessment of hedge effectiveness for the three and six months ended January 1, 2016, respectively.

9. 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 reflects 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:

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

20

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 30, 2016:

	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
Assets:
Money market funds	$	815	$	—		$	—	$	815
Total cash equivalents and short-term investments		815		—			—		815
Restricted cash and investments:
Money market funds		1		—			—		1
Certificates of deposit		—		3			—		3
Total assets	$	816	$	3		$	—	$	819
Liabilities:
Derivative liabilities	$	—	$	(5	)	$	—	$	(5	)
Total liabilities	$	—	$	(5	)	$	—	$	(5	)

	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
Assets:
Cash and cash equivalents	$	815	$	—		$	—	$	815
Other current assets		1		3			—		4
Total assets	$	816	$	3		$	—	$	819
Liabilities:
Accrued expenses	$	—	$	(5	)	$	—	$	(5	)
Total liabilities	$	—	$	(5	)	$	—	$	(5	)

In the current quarter, the company reclassified demand deposits from certificates of deposit and money market funds to cash. The corresponding prior period amounts were reclassified to conform to the current period’s presentation. This reclassification did not result in any change to the cash and cash equivalents balance as reported in the Condensed Consolidated Balance Sheets and Statements of Cash Flows for all periods presented.

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 July 1, 2016:

21

	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
Assets:
Money market funds	$	230	$	—		$	—	$	230
Corporate bonds		—		6			—		6
Total cash equivalents and short-term investments		230		6			—		236
Restricted cash and investments:
Money market funds		2		—			—		2
Certificates of deposit		—		5			—		5
Derivative assets		—		3			—		3
Total assets	$	232	$	14		$	—	$	246
Liabilities:
Derivative liabilities	$	—	$	(3	)	$	—	$	(3	)
Total liabilities	$	—	$	(3	)	$	—	$	(3	)

	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
Assets:
Cash and cash equivalents	$	230	$	—		$	—	$	230
Short-term investments		—		6			—		6
Other current assets		2		8			—		10
Total assets	$	232	$	14		$	—	$	246
Liabilities:
Accrued expenses	$	—	$	(3	)	$	—	$	(3	)
Total liabilities	$	—	$	(3	)	$	—	$	(3	)

The Company classifies items in Level 1 if the financial assets consist of securities for which quoted prices are available in an active market.

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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 and certificates of deposits. 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 values of all of its cash equivalents and short-term investments. For the cash equivalents and short-term investments 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 30, 2016, 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 and the TRS. The Company recognizes derivative financial instruments in its 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.

As of December 30, 2016 and July 1, 2016, the Company had no Level 3 assets or liabilities measured at fair value on a recurring basis.

Items Measured at Fair Value on a Non-Recurring Basis

The Company enters into certain strategic investments for the promotion of business and strategic objectives. Strategic investments in equity securities where the Company does not have the ability to exercise significant influence over the investees, included in Other assets, net in the Condensed Consolidated Balance Sheets, are recorded at cost and are periodically analyzed to determine whether or not there are indicators of impairment. The carrying value of the Company’s strategic investments at December 30, 2016 and July 1, 2016 totaled $91 million and $113 million, respectively, and consisted primarily of privately held equity securities without a readily determinable fair value.

In the six months ended December 30, 2016 and January 1, 2016, the Company determined that a certain equity investment accounted for under the cost method was other-than-temporarily impaired, and recognized a charge of $25 million and $10 million, respectively, in order to write down the carrying amount of the investment to zero. Since there was no active market for the equity securities of the investee, the Company estimated fair value of the investee by analyzing the underlying cash flows and future prospects of the investee. These amounts were recorded in Other, net in the Condensed Consolidated Statements of Operations.

Other Fair Value Disclosures

The Company’s debt is carried at amortized cost. The fair value of the Company’s debt is derived using the closing price 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 30, 2016					July 1, 2016
(Dollars in millions)	Carrying Amount			Estimated Fair Value		Carrying Amount			Estimated Fair Value
3.75% Senior Notes due November 2018	$	800		$	822	$	800		$	804
7.00% Senior Notes due November 2021		158			163		158			164
4.75% Senior Notes due June 2023		990			984		990			857
4.75% Senior Notes due January 2025		995			944		995			795
4.875% Senior Notes due June 2027		698			633		698			514
5.75% Senior Notes due December 2034		489			419		489			357
	$	4,130		$	3,965	$	4,130		$	3,491
Less: debt issuance costs		(37	)		—		(39	)		—
Long-term debt, net of debt issuance costs	$	4,093		$	3,965	$	4,091		$	3,491
Less: short-term borrowings and current portion of long-term debt		—			—		—			—
Long-term debt, less current portion	$	4,093		$	3,965	$	4,091		$	3,491

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10. Equity

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 295,151,580 shares were outstanding as of December 30, 2016, and 100,000,000 preferred shares, par value $0.00001, of which none were issued or outstanding as of December 30, 2016.

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

On April 22, 2015, the Board of Directors authorized the Company to repurchase an additional $2.5 billion of its outstanding ordinary shares.

All repurchases are effected as redemptions in accordance with the Company’s Articles of Association.

As of December 30, 2016, $1.5 billion remained available for repurchase under the existing repurchase authorization limit.

The following table sets forth information with respect to repurchases of the Company’s shares during the six months ended December 30, 2016:

(In millions)	Number of Shares Repurchased		Dollar Value of Shares Repurchased
Repurchases of ordinary shares		7	$	248
Tax withholding related to vesting of equity awards		1		24
Total		8	$	272

11. Share-based Compensation

The Company recorded approximately $33 million and $73 million share-based compensation expense during the three and six months ended December 30, 2016, respectively. The Company recorded approximately $32 million and $65 million of shared-based compensation expense during the three and six months ended January 1, 2016, respectively.

12. Guarantees

Indemnifications to Officers and Directors

On May 4, 2009, Seagate Technology, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Seagate-Cayman”), then the parent company, entered into a new form of indemnification agreement (the “Revised Indemnification Agreement”) with its officers and directors of Seagate-Cayman and its subsidiaries (each, an “Indemnitee”). The Revised Indemnification Agreement provides indemnification in addition to any of Indemnitee’s indemnification rights under Seagate-Cayman’s Articles of Association, applicable law or otherwise, and indemnifies an Indemnitee for certain expenses (including attorneys’ fees), judgments, fines and settlement amounts actually and reasonably incurred by him or her in any action or proceeding, including any action by or in the right of Seagate-Cayman or any of its subsidiaries, arising out of his or her service as a

24

director, officer, employee or agent of Seagate-Cayman or any of its subsidiaries or of any other entity to which he or she provides services at Seagate-Cayman’s request. However, an Indemnitee shall not be indemnified under the Revised Indemnification Agreement for (i) any fraud or dishonesty in the performance of Indemnitee’s duty to Seagate-Cayman or the applicable subsidiary of Seagate-Cayman or (ii) Indemnitee’s conscious, intentional or willful failure to act honestly, lawfully and in good faith with a view to the best interests of Seagate-Cayman or the applicable subsidiary of Seagate-Cayman. In addition, the Revised Indemnification Agreement provides that Seagate-Cayman will advance expenses incurred by an Indemnitee in connection with enforcement of the Revised Indemnification Agreement or with the investigation, settlement or appeal of any action or proceeding against him or her as to which he or she could be indemnified.

On July 3, 2010, pursuant to a corporate reorganization, the common shareholders of Seagate-Cayman became ordinary shareholders of Seagate Technology plc (the “Company”) and Seagate-Cayman became a wholly owned subsidiary of the Company, as described more fully in the Current Report on Form 8-K filed by the Company on July 6, 2010 (the “Redomestication”). On July 27, 2010, in connection with the Redomestication, the Company, as sole shareholder of Seagate-Cayman, approved a form of deed of indemnity (the “Deed of Indemnity”), which provides for the indemnification by Seagate-Cayman of any director, officer, employee or agent of the Company, Seagate-Cayman or any subsidiary of the Company (each, a “Deed Indemnitee”), in addition to any of a Deed Indemnitee’s indemnification rights under the Company’s Articles of Association, applicable law or otherwise, with a similar scope to the Revised Indemnification Agreement. Seagate-Cayman entered into the Deed of Indemnity with certain Deed Indemnitees effective as of July 3, 2010 and continues to enter into the Deed of Indemnity with additional Deed Indemnitees from time to time.

The nature of these indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay on behalf of its officers and directors. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the accompanying condensed consolidated financial statements with respect to these indemnification obligations.

Intellectual Property Indemnification Obligations

The Company has entered into agreements with customers and suppliers that include limited intellectual property indemnification obligations that are customary in the industry. These guarantees generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party intellectual property claims arising from these transactions. The nature of the intellectual property indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to its customers and suppliers. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the accompanying condensed consolidated financial statements with respect to these indemnification 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 return rates in order to determine its warranty obligation. Changes in the Company’s product warranty liability during the three and six months ended December 30, 2016 and January 1, 2016 were as follows:

	For the Three Months Ended						For the Six Months Ended
(Dollars in millions)	December 30, 2016			January 1, 2016			December 30, 2016			January 1, 2016
Balance, beginning of period	$	216		$	225		$	206		$	248
Warranties issued		34			33			65			66
Repairs and replacements		(29	)		(40	)		(59	)		(81	)
Changes in liability for pre-existing warranties, including expirations		1			3			10			(12	)
Warranty liability assumed from business acquisitions		—			2			—			2
Balance, end of period	$	222		$	223		$	222		$	223

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13. Earnings Per Share

Basic 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 shares to be purchased under the ESPP. 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 income per share attributable to the shareholders of Seagate Technology plc:

	For the Three Months Ended				For the Six Months Ended
(In millions, except per share data)	December 30, 2016		January 1, 2016		December 30, 2016		January 1, 2016
Numerator:
Net income	$	297	$	165	$	464	$	198
Number of shares used in per share calculations:
Total shares for purposes of calculating basic net income per share		296		299		297		301
Weighted-average effect of dilutive securities:
Employee equity award plans		2		2		2		3
Total shares for purpose of calculating diluted net income per share		298		301		299		304
Net income per share:
Basic	$	1.00	$	0.55	$	1.56	$	0.66
Diluted	$	1.00	$	0.55	$	1.55	$	0.65

The anti-dilutive shares related to employee equity award plans that were excluded from the computation of diluted net income per share were 1 million and 2 million for the three and six months ended December 30, 2016, respectively, and 2 million and 1 million for the three and six months ended January 1, 2016, respectively.

14. 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.

Intellectual Property Litigation

Convolve, Inc. (“Convolve”) and Massachusetts Institute of Technology (“MIT”) v. Seagate Technology LLC, et al.—On July 13, 2000, Convolve and MIT filed suit against Compaq Computer Corporation and Seagate Technology LLC in the U.S. District Court for the Southern District of New York, alleging infringement of U.S. Patent No. 4,916,635 (the “‘635 patent”) and U.S. Patent No. 5,638,267 (the “‘267 patent”), misappropriation of trade secrets, breach of contract, and other claims. On January 16, 2002, Convolve filed an amended complaint, alleging defendants infringe U.S. Patent No. 6,314,473 (the “‘473 patent”). The district court ruled in 2010 that the ‘267 patent was out of the case.

On August 16, 2011, the district court granted in part and denied in part the Company’s motion for summary judgment. On July 1, 2013, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court’s summary judgment rulings that Seagate did not misappropriate any of the alleged trade secrets and that the asserted claims of the ‘635 patent are invalid; 2) reversed and vacated the district court’s summary judgment of non-infringement with respect to the ‘473 patent; and 3) remanded the case for further proceedings on the ‘473 patent. On July 11, 2014, the district court granted the Company’s further summary judgment motion regarding the ‘473 patent. On February 10, 2016, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court’s summary judgment of no direct infringement by Seagate because Seagate’s ATA/SCSI disk drives do not meet the “user interface” limitation of the asserted claims of the ‘473 patent; 2) affirmed the district court’s summary judgment of non-infringement by

26

Compaq’s products as to claims 1, 3, and 5 of the ‘473 patent because Compaq’s F10 BIOS interface does not meet the “commands” limitation of those claims; 3) vacated the district court’s summary judgment of non-infringement by Compaq’s accused products as to claims 7-15 of the ‘473 patent; 4) reversed the district court’s summary judgment of non-infringement based on intervening rights; and 5) remanded the case to the district court for further proceedings on the ‘473 patent. In view of the rulings made by the district court and the Court of Appeals and the uncertainty regarding the amount of damages, if any, that could be awarded Convolve in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter.

Alexander Shukh v. Seagate Technology—On February 12, 2010, Alexander Shukh filed a complaint against the Company in the U.S. District Court for the District of Minnesota, alleging, among other things, employment discrimination and wrongful failure to name him as an inventor on certain Seagate patents. On March 31, 2014, the district court granted Seagate’s summary judgment motion. Mr. Shukh filed a notice of appeal on April 7, 2014. On October 2, 2015, the U.S. Court of Appeals for the Federal Circuit vacated and remanded the district court’s grant of summary judgment on Mr. Shukh’s claim for correction of inventorship and affirmed the district court’s grant of summary judgment as to all other claims. On October 29, 2015, Mr. Shukh filed a petition for rehearing en banc with the court of appeals; the petition was denied on December 17, 2015. On March 16, 2016, Shukh filed a petition for writ of certiorari to the U.S. Supreme Court; the petition was denied on June 27, 2016. In view of the uncertainty regarding the amount of damages, if any, that could be awarded in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter.

Enova Technology Corporation v. Seagate Technology (US) Holdings, Inc., et al.—On June 5, 2013, Enova Technology Corporation (“Enova”) filed a complaint against Seagate Technology (US) Holdings, Inc. and Seagate Technology LLC in the U.S. District Court for the District of Delaware alleging infringement of U.S. Patent No. 7,136,995 (the ‘“995 patent”), “Cryptographic Device,” and U.S. Patent No. 7,900,057 (the “‘057 patent”), “Cryptographic Serial ATA Apparatus and Method.” The Company believes the claims are without merit and intends to vigorously defend this case. On April 27, 2015, the district court ordered a stay of the case, in view of proceedings regarding the ‘995 and ‘057 patents before the Patent Trial and Appeal Board (“PTAB”) of the U.S. Patent and Trademark Office. On September 2, 2015, PTAB issued its final written decision that claims 1-15 of the ‘995 patent are held unpatentable. On December 18, 2015, PTAB issued its final written decisions that claims 1-32 and 40-53 of the ‘057 patent are held unpatentable. On February 4, 2016, PTAB issued its final written decision that claims 33-39 of the ‘057 patent are held unpatentable. Enova has appealed PTAB’s decisions on the ‘995 patent and the ‘057 patent to the U.S. Court of Appeals for the Federal Circuit. Oral argument for the appeal from PTAB’s decision on the ‘995 patent is scheduled for March 13, 2017, at the court of appeals. A hearing before the court of appeals for the appeal from PTAB’s decision on the ‘057 patent has not yet been scheduled. In view of the uncertainty regarding the amount of damages, if any, that could be awarded in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter.

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.” The Company believes the claims asserted in the complaint are without merit and intends to vigorously defend this case. In view of the uncertainty regarding the amount of damages, if any, that could be awarded in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter.

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

27

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 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, 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 European Union REACH Directive (Registration, Evaluation, Authorization, and Restriction of Chemicals, EC 1907/2006) also restricts substances of very high concern (“SVHCs”) in products. If the Company or its suppliers fails 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.

Other Matters

The Company is involved in a number of other judicial and administrative proceedings incidental to its business, and the Company may be involved in various legal proceedings 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.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion of the financial condition, changes in financial condition, and results of operations for our fiscal quarters ended December 30, 2016, September 30, 2016 and January 1, 2016, referred to herein as the “December 2016 quarter,” the “September 2016 quarter,” and the “December 2015 quarter,” respectively. We operate and report financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. The December 2016, September 2016, and December 2015 quarters were 13 weeks.

You should read this discussion in conjunction with financial information and related notes included elsewhere in this report. Unless the context indicates otherwise, as used herein, the terms “we,” “us,” “Seagate,” the “Company” and “our” refer to Seagate Technology plc, an Irish public limited company, and its subsidiaries. References to “$” are to United States dollars.

Some of the statements and assumptions included in this Quarterly Report on Form 10-Q are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended, including, in particular, statements about our plans, strategies, growth prospects, demand for our products, our ability to effectively manage our debt obligations, and estimates of industry growth for the fiscal quarter ending March 31, 2017 and the fiscal year ending June 30, 2017 and beyond. These statements identify prospective information and may include words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “may,” “will,”” or negative of these words, variations of these words and comparable terminology. These forward-looking statements are based on information available to the Company as of the date of this Quarterly Report on Form 10-Q and are based on management’s current views and assumptions. These forward-looking statements are conditioned upon and also involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, performance or events to differ materially from those anticipated by these forward-looking statements. Such risks, uncertainties and other factors may be beyond our control and may pose a risk to our operating and financial condition and include, but are not limited to: the impact of the variable demand and adverse pricing environment for disk drives, particularly in view of current business and economic conditions; our ability to successfully qualify, manufacture and sell our disk drive products in increasing volumes on a cost-effective basis and with acceptable quality, particularly the new disk drive products with lower cost structures; the impact of competitive product announcements and unexpected advances in competing technologies or changes in market trends; our ability to achieve projected cost savings in connection with restructuring plans and consolidation of our manufacturing activities; possible excess industry supply with respect to particular disk drive products; disruptions to our supply chain or production capabilities; the development and introduction of products based on new technologies and expansion into new data storage markets; our ability to comply with certain covenants in our credit facilities with respect to financial ratios and financial condition tests; currency fluctuations that may impact the Company’s margins and international sales; cyber-attacks or other data breaches that disrupt our operations or results in the dissemination of proprietary or confidential information and cause reputational harm; and fluctuations in interest rates. We also encourage you to read our Annual Report on Form 10-K for the fiscal year ended July 1, 2016 which contains detailed information concerning risks, uncertainties and other factors that could cause results to differ materially from those projected in the forward-looking statements herein. These forward-looking statements should not be relied upon as representing our views as of any subsequent date and we undertake no obligation to update forward-looking statements to reflect events or circumstances after the date they were made.

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is provided in addition to the accompanying condensed consolidated financial statements and notes to assist readers in understanding our results of operations, financial condition, and cash flows. Our MD&A is organized as follows:

• Our Company. Overview of our business.

• Overview of the December 2016 quarter. Highlights of events in the December 2016 quarter that impacted our financial position.

• Results of Operations. An analysis of our financial results comparing the December 2016 quarter to the September 2016 quarter and the December 2015 quarter.

• Liquidity and Capital Resources. An analysis of changes in our balance sheets and cash flows, and discussion of our financial condition including the credit quality of our investment portfolio and potential sources of liquidity.

• Critical Accounting Policies. Accounting policies and estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results.

Our Company

We are a leading provider of electronic data storage technology and solutions. Our principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, we produce a broad range of electronic data storage products including solid state drives (“SSD”) in our Enterprise market portfolio and solid state hybrid drives (“SSHD”). Our storage technology portfolio also includes storage subsystems, and high performance computing (“HPC”) solutions.

Hard disk drives are devices that store digitally encoded data on rapidly rotating disks with magnetic surfaces. Disk drives continue to be the primary medium of mass data storage due to their performance attributes, high quality and cost effectiveness.

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Complementing existing data center storage architecture, solid-state storage devices use integrated circuit assemblies as memory to store data, and most SSDs use NAND-based flash memory. In addition to HDDs and SSDs, SSHDs combine the features of SSDs and HDDs in the same unit, containing a large hard disk drive and an SSD cache to improve performance of frequently accessed data.

Our products are designed for mission critical and nearline applications in enterprise servers and storage systems; client compute applications, where our products are designed primarily for desktop and mobile computing; and client non-compute applications, where our products are designed for a wide variety of end user devices such as portable external storage systems, personal data backup systems, surveillance systems, digital video recorders (“DVRs”) and gaming consoles.

Our Cloud Systems and Solutions product portfolio builds on the Seagate legacy to extend innovation from the device into the information infrastructure, onsite and in the cloud. This product portfolio includes HPC storage solutions, modular original equipment manufacturers (“OEM”) storage systems and scale-out storage systems.

Overview of the December 2016 Quarter

During the December 2016 quarter, we shipped 40 million drive units totaling 68 exabytes of storage capacity, generating revenue of approximately $2.9 billion and gross margin of 31%. Our operating cash flow was $656 million. We repurchased 4 million ordinary shares for $147 million and paid dividends of $188 million.

Results of Operations

We list in the tables below summarized information from our Condensed Consolidated Statements of Operations by dollars and as a percentage of revenue:

	For the Three Months Ended									For the Six Months Ended
(Dollars in millions)	December 30, 2016			September 30, 2016			January 1, 2016			December 30, 2016			January 1, 2016
Revenue	$	2,894		$	2,797		$	2,986		$	5,691		$	5,911
Cost of revenue		2,003			1,996			2,245			3,999			4,482
Gross margin		891			801			741			1,692			1,429
Product development		305			315			304			620			632
Marketing and administrative		155			155			160			308			341
Amortization of intangibles		28			28			31			57			65
Restructuring and other, net		33			82			17			115			76
Income from operations		370			221			229			592			315
Other expense, net		(60	)		(48	)		(49	)		(109	)		(104	)
Income before income taxes		310			173			180			483			211
Provision for income taxes		13			6			15			19			13
Net income	$	297		$	167		$	165		$	464		$	198

	For the Three Months Ended									For the Six Months Ended
	December 30, 2016			September 30, 2016			January 1, 2016			December 30, 2016			January 1, 2016
Revenue		100	%		100	%		100	%		100	%		100	%
Cost of revenue		69			71			75			70			76
Gross margin		31			29			25			30			24
Product development		11			11			10			11			11
Marketing and administrative		5			6			5			6			6
Amortization of intangibles		1			1			1			1			1
Restructuring and other, net		1			3			1			2			1
Income from operations		13			8			8			10			5
Other expense, net		(2	)		(2	)		(2	)		(2	)		(2	)
Income before income taxes		11			6			6			8			3
Provision for income taxes		1			—			—			—			—
Net income		10	%		6	%		6	%		8	%		3	%

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Revenue

The following table summarizes information regarding average drive selling prices (“ASPs”), drive volume unit shipments, exabytes shipped, and revenues by channel and geography:

	For the Three Months Ended									For the Six Months Ended
(In millions, except percentages, exabytes and ASPs)	December 30, 2016			September 30, 2016			January 1, 2016			December 30, 2016			January 1, 2016
Unit Shipments (1):
Enterprise		8			9			8			17			16
Client Compute		18			16			25			34			53
Client Non-Compute		14			14			13			28			24
Total Units Shipped		40			39			46			79			93
ASPs (per unit)	$	66		$	67		$	59		$	67		$	59
Exabytes Shipped		68			67			61			135			117
Revenues by Channel (%)
OEMs		66	%		71	%		69	%		68	%		69	%
Distributors		18	%		17	%		16	%		18	%		17	%
Retailers		16	%		12	%		15	%		14	%		14	%
Revenues by Geography (%)
Americas		30	%		34	%		26	%		32	%		27	%
EMEA		19	%		15	%		19	%		17	%		18	%
Asia Pacific		51	%		51	%		55	%		51	%		55	%

(1) For the periods presented, gaming units in Client Compute have been reclassified to Client Non-Compute to better align with current market trends.

Revenue in the December 2016 quarter increased by $97 million from the September 2016 quarter as a result of an increase in unit shipments driven primarily by better seasonal demand and improved product mix offset by price erosion. Additionally, our revenue has become less heavily weighted towards OEMs.

Revenue in the December 2016 quarter and the six months then ended decreased by $92 million and $220 million, respectively, as compared to the December 2015 quarter and the six months then ended due to a decrease in unit shipments and the impact of price erosion, partially offset by improved product mix. The decrease in unit shipments of 6 million and 14 million as compared to the December 2015 quarter and the six months then ended, respectively, was the result of decreased demand for client compute devices, which generally have lower ASPs. Additionally, our revenue has become less heavily weighted towards OEMs.

We maintain various sales programs such as channel rebates and price masking. Sales programs were approximately at 11%, 10% and 14% of gross drive revenue for the December 2016 quarter, September 2016 quarter and December 2015 quarter, respectively. Adjustments to revenues due to under or over accruals for sales programs related to revenues reported in prior quarterly periods were less than 1% of quarterly gross revenue in all periods presented.

Cost of Revenue and Gross Margin

	For the Three Months Ended									For the Six Months Ended
(Dollars in millions)	December 30, 2016			September 30, 2016			January 1, 2016			December 30, 2016			January 1, 2016
Cost of revenue	$	2,003		$	1,996		$	2,245		$	3,999		$	4,482
Gross margin		891			801			741			1,692			1,429
Gross margin percentage		31	%		29	%		25	%		30	%		24	%

Gross margin as a percentage of revenue for the December 2016 quarter increased by 200 and 600 basis points compared to the September 2016 quarter and December 2015 quarter, respectively, driven by favorable product mix and improved utilization of factories resulting from cost savings due to our ongoing workforce reductions and manufacturing consolidation activities, partially offset by price erosion.

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Compared to the six months ended in the December 2015 quarter, gross margin for the six months then ended in the December 2016 quarter increased by 600 basis points due to a favorable product mix and improved utilization of factories resulting from cost savings due to our ongoing workforce reductions and manufacturing consolidation activities, partially offset by price erosion.

In the December 2016 quarter, total warranty cost was in the historical range of 1% to 1.5% of revenue and included an unfavorable change in estimates of prior warranty accruals of less than 0.5% of revenue. Warranty cost related to new unit shipments was 1.2%, 1.1%, and 1.1% of revenue for each of the December 2016, September 2016 and December 2015 quarters, respectively.

Operating Expenses

	For the Three Months Ended						For the Six Months Ended
(Dollars in millions)	December 30, 2016		September 30, 2016		January 1, 2016		December 30, 2016		January 1, 2016
Product development	$	305	$	315	$	304	$	620	$	632
Marketing and administrative		155		155		160		308		341
Amortization of intangibles		28		28		31		57		65
Restructuring and other, net		33		82		17		115		76
Operating expenses	$	521	$	580	$	512	$	1,100	$	1,114

Product development expense. Product development expense for the December 2016 quarter decreased by $10 million from the September 2016 quarter due to a $10 million decrease in salaries and related benefits as a result of the restructuring of our workforce in the prior periods and an increase in operational efficiencies in our business, partially offset by an increase in variable compensation driven by improved financial performance. Compared to the December 2015 quarter, product development expense remained flat due to a $25 million increase in variable compensation driven by improved financial performance, offset by a $16 million decrease in salaries and related benefits as a result of the restructuring of our workforce in prior periods and an increase in operational efficiencies.

Product development expense for the six months ended December 2016 quarter decreased by $12 million as compared to the corresponding period in the prior year due to a decrease in salaries and related benefits of $58 million as a result of the restructuring of our workforce in the prior periods, and an increase in operational efficiencies in our business, offset by an increase in variable compensation and share-based compensation of $69 million driven by better financial performance.

Marketing and administrative expense. Marketing and administrative expense for the December 2016 quarter remained flat from the September 2016 quarter. Compared to the December 2015 quarter, marketing and administrative expense decreased by $5 million due to a $13 million decrease in salaries and related benefits as a result of the restructuring of our workforce in prior periods and, a $9 million reduction in advertising and marketing expenses in the December 2016 quarter. The decrease was partially offset by a $15 million increase in variable compensation driven by better financial performance in the December 2016 quarter.

Marketing and administrative expense for the six months ended December 2016 quarter decreased by $33 million compared to the corresponding period in the prior year due to a decrease in salaries and related benefits of $42 million as a result of the restructuring of our workforce in prior periods, a $24 million reduction resulting from the completion of certain promotional and branding activities in fiscal year 2016 and other cost reduction efforts, partially offset by a $33 million increase in variable compensation and share-based compensation driven by better financial performance.

Amortization of intangibles. Amortization of intangibles for the December 2016 quarter remained flat from the September 2016 quarter. Compared to the December 2015 quarter, amortization of intangibles decreased by $3 million due to certain intangible assets reaching the end of their useful life.

Amortization of intangibles for the six months ended December 2016 decreased by $8 million as compared to the corresponding period in the prior year due to certain intangible assets reaching the end of their useful life, partially offset by the amortization of intangible assets acquired in the acquisition of Dot Hill in the December 2015 quarter.

Restructuring and other, net. Restructuring and other, net for the September 2016 quarter and the six months ended December 2016 was comprised primarily of restructuring charges to reduce our global workforce by 6,500 employees as we continue to consolidate our global footprint across Asia, EMEA and the Americas.

Restructuring and other, net for three and six months ended December 2015 was comprised primarily of a restructuring charge recorded for September 2015 Plan to reduce our workforce by approximately 1,000 employees as a result of our ongoing focus on cost efficiencies in all areas of our business. See “Part I, Item 1. Financial Statements-Note 7. Restructuring and Exit Costs” for more details.

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Other Expense, Net

	For the Three Months Ended									For the Six Months Ended
(Dollars in millions)	December 30, 2016			September 30, 2016			January 1, 2016			December 30, 2016			January 1, 2016
Other expense, net	$	(60	)	$	(48	)	$	(49	)	$	(109	)	$	(104	)

Other expense, net increased by $12 million and $11 million from the September 2016 and December 2015 quarters, respectively, due to a $25 million charge related to the impairment of a strategic investment in the December 2016 quarter, partially offset by $16 million and $14 million, in the September 2016 and December 2015 quarters, respectively, from favorable foreign currency changes in foreign exchange rates.

Other expense, net for the six months ended December 2016 increased by $5 million from the prior six month period ended December 2015, due to a $25 million charge related to the impairment of a strategic investment, partially offset by $11 million from favorable foreign currency changes in foreign exchange rates and a $10 million loss related to the impairment of a strategic investment in the prior six month period ended December 2015.

Income Taxes

	For the Three Months Ended						For the Six Months Ended
(Dollars in millions)	December 30, 2016		September 30, 2016		January 1, 2016		December 30, 2016		January 1, 2016
Provision for income taxes	$	13	$	6	$	15	$	19	$	13

Our income tax provision of $13 million and $19 million in the three and six months ended December 30, 2016 included less than $1 million of net discrete tax expense and approximately $4 million of net discrete tax benefits, respectively. These discrete items are primarily associated with the release of tax reserves due to the expiration of certain statutes of limitation and prior year tax adjustments.

Our income tax provision recorded for the December 2016 quarter and for the first half of fiscal year 2017 differed from the provision from income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax holidays or tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain deferred tax assets.

During the six months ended December 30, 2016, our unrecognized tax benefits excluding interest and penalties decreased by approximately $4 million to $66 million. The unrecognized tax benefits that, if recognized, would impact the effective tax rate were $66 million at December 30, 2016, subject to certain future valuation allowance reversals. During the 12 months beginning December 31, 2016, we expect that our unrecognized tax benefits could be reduced by approximately $12 million, primarily as a result of the expiration of certain statutes of limitation.

Our income tax provision recorded for the first half of fiscal year 2016 included approximately $3 million of net discrete tax benefits, primarily for the release of tax reserves due to the expiration of certain statutes of limitation.

Our income tax provision recorded for the December 2015 quarter and for the first half of fiscal year 2016 differed from the provision from income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax holidays or tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain U.S. deferred tax assets. The acquisition of Dot Hill Systems Corporation did not have a material impact on our effective tax rate in fiscal year 2016.

Liquidity and Capital Resources

The following sections discuss our principal liquidity requirements, as well as our sources and uses of cash and our liquidity and capital resources. Our cash and cash equivalents are maintained in investments with remaining maturities of 90 days or less at the time of purchase. Our short-term investments consist primarily of money market funds, and certificates of deposit. The principal objectives of our investment policy are the preservation of principal and maintenance of liquidity. We believe our cash equivalents and short-term investments are liquid and accessible. We operate in some countries that have

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restrictive regulations over the movement of cash and/or foreign exchange across their borders. However, we believe our sources of cash have been and will continue to be sufficient to meet our cash needs for the next 12 months unimpeded by any restrictive regulations. We are not aware of any downgrades, losses or other significant deterioration in the fair value of our cash equivalents or short-term investments and we do not believe the fair value of our short-term investments has significantly changed from the values reported as of December 30, 2016.

Cash and Cash Equivalents and Short-term Investments

(Dollars in millions)	December 30, 2016		July 1, 2016		Change
Cash and cash equivalents	$	1,716	$	1,125	$	591
Short-term investments		—		6		(6	)
Total	$	1,716	$	1,131	$	585

Our cash and cash equivalents and short-term investments increased from July 1, 2016 as a result of an increase in net cash provided by operating activities, partially offset by net cash outflows for capital expenditures, repurchases of our ordinary shares and dividends paid to our shareholders.

Cash Provided by Operating Activities

Cash provided by operating activities for the six months ended December 30, 2016 of $1,247 million includes the effects of net income adjusted for non-cash items including depreciation, amortization, share-based compensation, and:

• a decrease of $110 million in accounts receivable, primarily due to a change in channel mix and improved in-quarter linearity of shipments; and

• an increase of $170 million in accounts payable, primarily due to the timing of payments of material purchases and an increase in units built; offset by

• an increase in inventory of $140 million primarily due to an increase in units built in anticipation of adjustments to our manufacturing footprint.

Cash Used in Investing Activities

Cash used for investing activities for the six months ended December 30, 2016 was $234 million and primarily attributable to the following activities:

• $235 million used to acquire property, equipment and leasehold improvements

Cash Used in Financing Activities

Cash used in financing activities of $413 million for the six months ended December 30, 2016 was primarily attributable to the following activities:

• $248 million paid to repurchase ordinary shares;

• $188 million in dividend payments; and

• $24 million paid for taxes related to net share settlement of equity awards; offset by

• $47 million in proceeds from issuance of ordinary shares under employee stock plans

Liquidity Sources, Cash Requirements and Commitments

Our primary sources of liquidity as of December 30, 2016 consisted of: (1) approximately $1.7 billion in cash and cash equivalents, (2) cash we expect to generate from operations and (3) a $700 million senior revolving credit facility.

As of December 30, 2016, no borrowings had been drawn under the revolving credit facility or had been utilized for letters of credit issued under this credit facility. The line of credit is available for borrowings, subject to compliance with financial covenants and other customary conditions to borrowing.

The credit agreement that governs our revolving credit facility, as amended, includes three financial covenants: (1) minimum cash, cash equivalents and marketable securities; (2) a fixed charge coverage ratio; and (3) a net leverage ratio. On April 28, 2016, the Revolving Credit Agreement was amended in order to increase the allowable net leverage ratio to adjust for our current financial liquidity position. We were in compliance with the modified covenants as of December 30, 2016 and expect to be in compliance for the next 12 months.

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Our liquidity requirements are primarily to meet our working capital, product development and capital expenditure needs, to fund scheduled payments of principal and interest on our indebtedness, and to fund our quarterly dividend. Our ability to fund these requirements will depend on our future cash flows, which are determined by future operating performance, and therefore, subject to prevailing global macroeconomic conditions and financial, business and other factors, some of which are beyond our control. However, we believe our sources of cash will continue to be sufficient to meet our cash needs for the next 12 months

For fiscal year 2017, we expect capital expenditures to be less than 5% of revenue.

From time to time we may repurchase any of our outstanding notes in open market or privately negotiated purchases or otherwise, or may repurchase outstanding notes pursuant to the terms of the applicable indenture.

Dividends declared in the December 2016 quarter of $186 million were subsequently paid on January 4, 2017. The Company’s Board of Directors declared a quarterly cash dividend of $0.63 per share on January 24, 2017, which is payable on April 5, 2017 to shareholders of record at the close of business on March 22, 2017.

From time to time we may repurchase any of our outstanding ordinary shares through private, open market, or broker assisted purchases. As of December 30, 2016, $1.5 billion remained available for repurchase under our existing repurchase authorization limit. All repurchases are effected as redemptions in accordance with the Company’s Articles of Association.

Contractual Obligations and Commitments

Our contractual cash obligations and commitments as of December 30, 2016, have been summarized in the table below:

			Fiscal Year(s)
(Dollars in millions)	Total		Remainder of 2017		2018-2019		2020-2021		Thereafter
Contractual Cash Obligations:
Long-term debt	$	4,133	$	—	$	800	$	—	$	3,333
Interest payments on debt		1,692		99		381		334		878
Purchase obligations (2)		1,801		901		725		175		—
Operating leases (1)		148		12		37		20		79
Capital expenditures		128		128		—		—		—
Other funding requirements (3)		40		8		24		8		—
Subtotal		7,942		1,148		1,967		537		4,290
Commitments:
Letters of credit or bank guarantees		105		105		—		—		—
Total	$	8,047	$	1,253	$	1,967	$	537	$	4,290

(1) Includes total future minimum rent expense under non-cancelable leases for both occupied and vacated facilities (rent expense is shown net of sublease income).

(2) Purchase obligations are defined as contractual obligations for the purchase of goods or services, which are enforceable and legally binding on us, and that specify all significant terms.

(3) Consists of funding requirements related to strategic commitments.

As of December 30, 2016, we had a liability for unrecognized tax benefits and an accrual for the payment of related interest totaling $11 million, none of which is expected to be settled within one year. Outside of one year, we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur.

Critical Accounting Policies

Our discussion and analysis of financial condition and results of operations are based upon our Condensed Consolidated Financial Statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of such statements requires us to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period and the reported amounts of assets and liabilities as of the date of the financial statements. Our estimates are based on historical experience and other assumptions that we consider to be appropriate in the circumstances. However, actual future results may vary from our estimates.

Since our fiscal year ended July 1, 2016, there have been no material changes in our critical accounting policies and estimates. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended July 1, 2016, as filed with the SEC on August 5, 2016, for a discussion of our critical accounting policies and estimates.

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Recent Accounting Pronouncements

See “Part I, Item 1. Financial Statements—Note 1. Basis of Presentation and Summary of Significant Accounting Policies” for information regarding the effect of new accounting pronouncements on our financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have exposure to market risks due to the volatility of interest rates, foreign currency exchange rates, equity and bond markets. A portion of these risks are hedged, but fluctuations could impact our results of operations, financial position and cash flows. Additionally, we have exposure to downgrades in the credit ratings of our counterparties as well as exposure related to our credit rating changes.

Interest Rate Risk. Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio. As of December 30, 2016, we had no material available-for-sale securities that had been in a continuous unrealized loss position for a period greater than 12 months. We determined no available-for-sale securities were other-than-temporarily impaired as of December 30, 2016. We currently do not use derivative financial instruments in our investment portfolio.

We have fixed rate debt obligations. We enter into debt obligations to support general corporate purposes including capital expenditures and working capital needs.

The table below presents principal amounts and related weighted-average interest rates by year of maturity for our investment portfolio and debt obligations as of December 30, 2016.

Fiscal Years Ended

(Dollars in millions, except percentages)	2017			2018		2019			2020		2021		Thereafter			Total			Fair Value at December 30, 2016
Assets
Cash equivalents:
Fixed rate	$	819		$	—	$	—		$	—	$	—	$	—		$	819		$	819
Average interest rate		0.66	%														0.66	%
Total fixed income	$	819		$	—	$	—		$	—	$	—	$	—		$	819		$	819
Average interest rate		0.66	%														0.66	%
Debt
Fixed rate	$	—		$	—	$	800		$	—	$	—	$	3,333		$	4,133		$	3,965
Average interest rate							3.75	%						5.03	%		4.78	%

Foreign Currency Exchange Risk. We may enter into foreign currency forward exchange contracts to manage exposure related to certain foreign currency commitments and anticipated foreign currency denominated expenditures. Our policy prohibits us from entering into derivative financial instruments for speculative or trading purposes. At this time, we have not identified any material exposure associated with the changes as a result of the British vote to exit the European Union.

We also hedge a portion of our foreign currency denominated balance sheet positions with foreign currency forward exchange contracts to reduce the risk that our earnings will be adversely affected by changes in currency exchange rates. The changes in fair value of these hedges are recognized in earnings in the same period as the gains and losses from the remeasurement of the assets and liabilities. These foreign currency forward exchange contracts are not designated as hedging instruments under ASC 815, Derivatives and Hedging. All these foreign currency forward contracts mature within 12 months.

We evaluate hedging effectiveness prospectively and retrospectively and record any ineffective portion of the hedging instruments in Cost of revenue on the Condensed Consolidated Statements of Operations. We did not have any material net gains (losses) recognized in Cost of revenue for cash flow hedges due to hedge ineffectiveness or discontinued cash flow hedges during the three months ended December 30, 2016.

The table below provides information as of December 30, 2016 about our foreign currency forward exchange contracts. The table is provided in U.S. dollar equivalent amounts and presents the notional amounts (at the contract exchange rates) and the weighted-average contractual foreign currency exchange rates.

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(Dollars in millions, except average contract rate)	Notional Amount		Average Contract Exchange Rate		Estimated Fair Value (1)
Foreign currency forward exchange contracts:
British Pound Sterling	$	37	$	0.73	$	(4	)
Singapore Dollars		93		1.44		(1	)
Thai Baht		66		35.98		—
Total	$	196			$	(5	)

(1) Equivalent to the unrealized net (loss) gain on existing contracts.

Other Market Risks. We have exposure to counterparty credit downgrades in the form of credit risk related to our foreign currency forward exchange contracts and our fixed income portfolio. We monitor and limit our credit exposure for our foreign currency forward exchange contracts by performing ongoing credit evaluations. We also manage the notional amount of contracts entered into with any one counterparty, and we maintain limits on maximum tenor of contracts based on the credit rating of the financial institution. Additionally, the investment portfolio is diversified and structured to minimize credit risk. As of December 30, 2016, we had no material credit exposure related to our foreign currency forward exchange contracts. Changes in our corporate issuer credit ratings have minimal impact on our financial results, but downgrades may negatively impact our future transaction costs and our ability to execute transactions with various counterparties.

We are subject to equity market risks due to changes in the fair value of the notional investments selected by our employees as part of our Seagate Deferred Compensation Plan (the “SDCP”). In fiscal year 2014, we entered into a Total Return Swap (“TRS”) in order to manage the equity market risks associated with the SDCP liabilities. We pay a floating rate, based on LIBOR plus an interest rate spread, on the notional amount of the TRS. The TRS is designed to substantially offset changes in the SDCP liability due to changes in the value of the investment options made by employees. See “Part I, Item 1. Financial Statements—Note 8. Derivative Financial Instruments” of this Report on Form 10-Q.

ITEM 4. CONTROLS AND PROCEDURES

An evaluation was performed under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this quarterly report. Based on the evaluation, our management, including our chief executive officer and chief financial officer, concluded that our disclosure controls and procedures were effective as of December 30, 2016. During the quarter ended December 30, 2016, there were no changes in our internal control over financial reporting that materially affected, or were reasonably likely to materially affect our internal control over financial reporting.

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PART II

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For a discussion of legal proceedings, see “Part I, Item 1. Financial Statements—Note 14. Legal, Environmental and Other Contingencies” of this Report on Form 10-Q.

ITEM 1A. RISK FACTORS

There have been no material changes to the description of the risk factors associated with our business previously disclosed in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended July 1, 2016. In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in our Annual Report on Form 10-K as they could materially affect our business, financial condition and future results.

The Risk Factors are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition or operating results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Repurchase of Equity Securities

All repurchases are effected as redemptions in accordance with the Company’s Articles of Association.

On April 22, 2015, the Board of Directors authorized the Company to repurchase an additional $2.5 billion of its outstanding ordinary shares.

As of December 30, 2016, $1.5 billion remained available for repurchase under the existing repurchase authorization limit. There is no expiration date on this authorization.

The following table sets forth information with respect to all repurchases of our shares made during fiscal quarter ended December 30, 2016:

(In millions, except average price paid per share)	Total Number of Shares Repurchased		Average Price Paid per Share		Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
October 1, 2016 through October 28, 2016		4	$	35.32		4	$	1,486
October 29, 2016 through November 30, 2016		—		38.78		—		1,485
December 1, 2016 through December 30, 2016		—		39.06		—		1,485
Total		4	$	35.35		4	$	1,485

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

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ITEM 6. EXHIBITS

See Exhibit Index on the page immediately following the signature page to this Report for a list of exhibits to this Report, which Exhibit Index is incorporated herein by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SEAGATE TECHNOLOGY PUBLIC LIMITED COMPANY
DATE: January 26, 2017	BY:	/s/ STEPHEN J. LUCZO
		Stephen J. Luczo
		Chief Executive Officer, Director and Chairman of the Board of Directors
		(Principal Executive Officer)
DATE: January 26, 2017	BY:	/s/ DAVID H. MORTON, JR.
		David H. Morton, Jr.
		Executive Vice President, Finance and Chief Financial Officer
		(Principal Financial and Accounting Officer)

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EXHIBIT INDEX

Exhibit Number	Description of Exhibit
3.1	Constitution of Seagate Technology Public Limited Company, as amended and restated by Special Resolution dated October 19, 2016, filed as Exhibit 3.1 to the Company’s current report on Form 8-K filed on October 24, 2016 and incorporated herein by reference.
3.2	Certificate of Incorporation of the Company, filed as Exhibit 3.2 to the Company’s annual report on Form 10-K filed on August 20, 2010 and incorporated herein by reference.
10.1+	Form of Employee Stock Option Agreement for Seagate Technology Public Limited Company pursuant to the 2012 Equity Incentive Plan
10.2+	Form of Employee Restricted Share Unit Agreement for Seagate Technology Public Limited Company pursuant to the 2012 Equity Incentive Plan
10.3+	Form of Executive Performance Unit Agreement for Seagate Technology Public Limited Company pursuant to the 2012 Equity Incentive Plan
10.4+	Form of Outside Directors Restricted Share Unit Agreement for Seagate Technology Public Limited Company pursuant to the 2012 Equity Incentive Plan
31.1+	Certification of Stephen J. Luczo, Chief Executive Officer, Director and Chairman of the Board of Directors of the Company, as required by Section 302 of the Sarbanes-Oxley Act of 2002.
31.2+	Certification of David H. Morton, Jr., Executive Vice President, Finance and Chief Financial Officer of the Company, as required by Section 302 of the Sarbanes-Oxley Act of 2002.
32.1+†	Certification of Stephen J. Luczo, Chief Executive Officer, Director and Chairman of the Board of Directors of the Company and David H. Morton, Jr., Executive Vice President, Finance and Chief Financial Officer of the Company, as required by Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS+	XBRL Instance Document.
101.SCH+	XBRL Taxonomy Extension Schema Document.
101.CAL+	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF+	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB+	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE+	XBRL Taxonomy Extension Presentation Linkbase Document.

+ Filed herewith.

† The certifications attached as Exhibit 32.1 that accompany this Form 10-Q are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Seagate Technology plc under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing.

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EX-10.1

Exhibit 10.1

SEAGATE TECHNOLOGY PUBLIC LIMITED COMPANY

2012 EQUITY INCENTIVE PLAN

OPTION AGREEMENT

1. Grant of Option. Seagate Technology Public Limited Company, a public company incorporated under the laws of the Republic of Ireland with limited liability (the “Company”), hereby grants to the Participant named in Section 2 below (the “Participant”) an option (the “Option”) to purchase the number of the Company’s ordinary shares (the “Shares”) set forth in Section 2 below at the exercise price per Share set forth in Section 2 (the “Exercise Price”) subject to the terms and conditions of the Seagate Technology Public Limited Company 2012 Equity Incentive Plan, as may be amended from time to time and including any exhibits thereto (the “Plan”) and this Option Agreement, including any exhibits hereto (the “Agreement”). In the event of a conflict between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall govern. Unless otherwise defined in this Agreement, any capitalized term used in this Agreement shall have the meaning assigned to such term in the Plan.

2. Option Terms. Subject to further detail included in this Agreement, the key terms related to the Option are as follows:

(a) Participant.

(b) Global ID Number.

(c) Date of Grant.

(d) Grant Number.

(e) Vesting Commencement Date.

(f) Exercise Price (Per Share).

(g) Number of Shares Subject to Option.

(h) Total Exercise Price.

(i) Expiration Date.

(j) Type of Grant. Nonstatutory Share Option.

(k) Exercise Schedule. Same as Vesting Schedule.

(l) Vesting Schedule. Subject to the Participant’s Continuous Service with the Company or one of its Affiliates, 25% of the Shares shall vest on the first anniversary of the Vesting Commencement Date, and an additional 1/48 of the Shares shall vest at the end of each full month thereafter, until the fourth anniversary of the Vesting Commencement Date, subject to the vesting conditions described in Section 3 below. If, on any vesting date, this Vesting Schedule would result in the vesting of a fraction of a Share, such fraction shall be rounded down to the nearest whole Share.

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(m) Payment. By cash or check or other method of payment permitted under Section 4(d) of the Agreement.

3. Vesting.

(a) Subject to Sections 3(b), 3(c) and 3(d) below, the Option shall vest and become exercisable in accordance with the Vesting Schedule set forth in Section 2 above. The portion of the Option which has become vested and exercisable as described in this Section 3 is hereinafter referred to as the “Vested Portion.”

(b) In the event of the Participant’s termination of Continuous Service on account of the Participant’s death, the Participant shall be deemed to have completed an additional year of service for purposes of determining the portion of the Option which is the Vested Portion.

(c) Subject to the terms of the Seagate Technology Executive Severance and Change in Control Plan, as amended from time to time, or other similar plan (the “Severance Plan”), in the event of Participant’s termination of Continuous Service for any reason, the Option shall, to the extent not then vested, be canceled by the Company without consideration, as further described in Section 7(n) below. The Vested Portion of the Option which is vested as of the date of such termination (after giving effect to the terms of the Severance Plan or Section 3(b) above, if applicable) shall remain exercisable for the period set forth in Section 4(b) below.

(d) The Committee may, in its sole discretion, suspend vesting of the Option if the Participant is on a leave of absence.

4. Exercise of Option.

(a) Eligibility to Exercise Option. During the Participant’s lifetime, only the Participant may exercise the Option. Should the Participant die while holding the Option, the Vested Portion of the Option shall remain exercisable by the Participant’s executor or administrator, or the person or persons to whom the Participant’s rights under this Agreement shall pass by will or the laws of descent and distribution, as the case may be, for the period set forth in Section 4(b) below. Any heir or legatee of the Participant shall take rights herein granted subject to the terms and conditions hereof.

(b) Period of Exercise. Subject to the provisions of the Plan and this Agreement, including the provision set forth in Section 7(n) below, the Participant may exercise all or any part of the Vested Portion of the Option at any time prior to the earliest to occur of:

(i) the “Expiration Date” set forth in Section 2 above;

(ii) three (3) months following the date of the Participant’s termination of Continuous Service for any reason (other than as a result of death or Disability or for Cause); provided, however, that if termination of the Participant’s

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Continuous Service by the Company or an Affiliate is not for Cause and if the exercise of the Vested Portion of the Option following such termination would be prohibited because the issuance of Shares would violate either the registration requirements under the Securities Act (or other applicable securities law) or the Company’s insider trading policy, then the Option shall terminate on the earlier of (A) the “Expiration Date” set forth in Section 2 above or (b) the expiration of a period of three (3) months after termination during which time the exercise of the Option would not be in violation of either such registration requirements (or other applicable securities law) or the Company’s insider trading policy;

(iii) one year following the date of the Participant’s termination of Continuous Service as a result of death or Disability (as defined in the Plan); and

(iv) the date of the Participant’s termination of Continuous Service for Cause.

For purposes of this Agreement:

“Cause” shall mean (A) the Participant’s continued failure substantially to perform the material duties of his office (other than as a result of total or partial incapacity due to physical or mental illness), (B) the fraud, embezzlement or theft by the Participant of the Company’s property (or any Affiliate’s property), (C) the conviction of such Participant of, or plea of nolo contendere by the Participant to, a felony under the laws of the United States or any state (or the equivalent under the laws of any other jurisdiction), (D) the Participant’s willful malfeasance or willful misconduct in connection with the Participant’s duties to the Company (or any Affiliate) or any other act or omission which is materially injurious to the financial condition or business reputation of the Company or any Affiliate, or (E) a material breach by the Participant of the terms of his employment agreement or any non-compete, non-solicitation or confidentiality provisions to which the Participant is subject; provided, however, that if the Participant is eligible to receive benefits under a Severance Plan containing a definition of “Cause,” then that definition shall control.

(c) Manner of Exercise. The Vested Portion of the Option may be exercised by delivering to the Company at its principal office (or to the Company’s designee) notice of intent to so exercise; provided, however, that the Option may be exercised with respect to whole Shares only. Such notice shall specify the number of Shares for which the Option is being exercised and shall be accompanied by payment in full of the Exercise Price, any applicable Tax-Related Items (as defined in Section 7 below) and any written representations, warranties or agreements as may be reasonably required by the Company to comply (or evidence compliance) with applicable laws with regard to the acquisition, issuance and sale of the Shares. The Company shall have the right to specify the manner of exercise, which may vary by country and which may be subject to change from time to time.

(d) Method of Payment. The Exercise Price for the Shares as to which the Option is exercised shall be paid to the Company by any of the following (or a combination thereof): (i) cash or check, (ii) provided there is a public market for the Shares at the time of exercise and pursuant to rules and procedures established by the Company from time to time,

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through the delivery of irrevocable instruments to a broker to sell all or a portion of such Shares and deliver promptly to the Company an amount equal to the aggregate Exercise Price for the Shares being purchased, or (iii) if permitted by the Committee, in its sole discretion, in Shares having a Fair Market Value equal to the aggregate Exercise Price for the Shares being purchased.

The Company reserves the right to restrict the available methods of payment to the extent it determines in its sole discretion that such restriction is required to comply with applicable laws with regard to the acquisition and issuance of the Shares or desirable for the administration of the Plan, or to otherwise modify the available methods of payment to the extent permitted under the terms of the Plan.

(e) Compliance with Law. Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from such registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required to deliver any Shares purchased upon exercise of the Option prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign law or under rulings or regulations of the U.S. Securities and Exchange Commission or of any other governmental regulatory body, or prior to the obtaining of any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable.

(f) Shareholder Rights. The Participant shall not be, nor have any of the rights or privileges of, a shareholder of the Company in respect of any Shares purchasable upon the exercise of any part of the Option unless and until such Shares have been issued by the Company to the Participant. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Article 12 of the Plan.

5. Transferability. The Option may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate.

6. Responsibility for Taxes. Regardless of any action the Company or any of its Affiliates take with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to the Participant’s participation in the Plan and legally applicable to the Participant (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and may exceed the amount, if any, actually withheld by the Company or the Affiliate. The Participant further acknowledges that the Company and/or any Affiliate (a) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option, including, but not limited to, the grant, vesting or exercise of the Option, the subsequent sale of Shares acquired pursuant to such exercise and the receipt of any dividends; and (b) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Option to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result. Further, if the Participant is subject to Tax-Related Items in more than one jurisdiction, the Participant acknowledges that the Company and/or the Affiliate may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

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Prior to any relevant taxable or tax withholding event, as applicable, the Participant will pay to the Company or the Affiliate an amount equal to, or will make arrangements acceptable to the Company and the Affiliate to satisfy any withholding obligation with respect to the Tax-Related Items. In this regard, the Participant authorizes the Company and/or its Affiliates, or their respective agents, at their discretion, to satisfy any withholding obligation with respect to the Tax-Related Items by one or a combination of the following: (i) withholding from the Participant’s wages or other cash compensation payable to the Participant by the Company and/or the Affiliate; (ii) withholding from proceeds of the sale of Shares acquired upon exercise of the Option (either through a voluntary or mandatory sale); or (iii) withholding in Shares to be issued upon exercise of the Option; provided, however, that if the Participant is an Officer, the Committee (as constituted to satisfy Rule 16b-3 of the Exchange Act) shall approve the use of withholding in Shares to the extent necessary or desirable to exempt the transaction under Rule 16b-3 of the Exchange Act.

Depending on the withholding method, the Company or the Affiliate may, if necessary, withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including up to maximum applicable rates, in which case the Participant may receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent in Shares. If the obligation for Tax-Related Items is satisfied by withholding in Shares as described in (iii) above, for tax purposes, the Participant will be deemed to have been issued the full number of Shares subject to the exercised portion of the Option, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of the Participant’s participation in the Plan.

The Company or the Affiliate may refuse to honor the exercise or refuse to issue or deliver the Shares or the proceeds of the sale of Shares unless and until the Participant has complied with the obligations related to Tax-Related Items described in this Section 6.

7. Nature of Grant. In accepting the Option, the Participant acknowledges, understands and agrees that:

(a) the Plan is established voluntarily by the Company, it is discretionary in nature, and may be amended, suspended or terminated by the Company at any time;

(b) the grant of the Option is voluntary and occasional and does not create any contractual or other right to receive future grants of options, or benefits in lieu of options, even if options have been granted repeatedly in the past;

(c) all decisions with respect to future option grants, if any, will be at the sole discretion of the Company;

(d) the Participant is voluntarily participating in the Plan;

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(e) the Participant’s participation in the Plan will not create a right to employment and shall not interfere with the ability of the Company or any Affiliate to terminate the Participant’s Continuous Service at any time;

(f) the Option and any Shares subject to the Option, and the income and value of the same, are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Company or any Affiliate, and which is outside the scope of the Participant’s employment or service contract, or consulting arrangement, if any;

(g) the Option and any Shares subject to the Option, and the income and value of the same, are not intended to replace any pension rights or compensation;

(h) the Option and any Shares subject to the Option are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services to the Company or any Affiliate;

(i) the Option grant will not be interpreted to form an employment or service contract or relationship with the Company or any Affiliate;

(j) the future value of the Shares subject to the Option is unknown and cannot be predicted with certainty;

(k) if the Shares subject to the Option do not increase in value, the Option will have no value;

(l) if the Participant exercises the Option and acquires Shares, the value of such Shares may increase or decrease, even below the Exercise Price;

(m) no claim or entitlement to compensation or damages shall arise from forfeiture of the Option resulting from termination of the Participant’s Continuous Service as described in Section 3(c) above and in Section 6.6 of the Plan (regardless of the reason for the termination and whether or not the termination is in breach of any employment law in the country where the Participant resides, even if such law is otherwise applicable to the Participant’s employment benefits, and whether or not such termination is later found to be invalid);

(n) unless otherwise agreed with the Company, the Option and the Shares subject to the Option, and the income and value of the same, are not granted as consideration for, or in connection with, the service the Participant may provide as a director of an Affiliate of the Company; and

(o) for purposes of the Option, the Participant’s Continuous Service will be considered terminated as of the date he or she is no longer actively employed by and/or providing services to the Company or an Affiliate, as applicable; the Participant’s right, if any, to vest in the Option and/or exercise the Vested Portion of the Option after termination of

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Continuous Service (regardless of whether the termination is in breach of any employment law in the country where the Participant resides, even if such law is otherwise applicable to the Participant’s employment benefits, and whether or not such termination is later found to be invalid) will be measured by the date the Participant ceases to be actively employed and/or actively providing services and will not be extended by any notice period mandated under any employment law in the country where the Participant resides, even if such law is otherwise applicable to the Participant’s employment benefits (e.g., active employment would not include a period of “garden leave” or similar period); the Committee, in its sole discretion, shall determine when the Participant is no longer actively employed for purposes of the Option (including whether the Participant may still be considered actively employed while on a leave of absence).

8. No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of the underlying Shares. The Participant should consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

9. Data Privacy. The Participant hereby explicitly and unambiguously consents to the collection, use, processing and transfer, in electronic or other form, of the Participant’s personal data as described in this Agreement and any other Option grant materials by and among, as applicable, the Company and its Affiliates (whether inside or outside the European Economic Area) for the exclusive purpose of implementing, administering and managing the Participant’s participation in the Plan.

The Participant understands that the Company and its Affiliates may hold certain personal information about the Participant, including, but not limited to, the Participant’s name, home address and telephone number, email address, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares or directorships held in the Company, details of all options or any other entitlement to shares awarded, canceled, exercised, vested, unvested or outstanding in the Participant’s favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).

The Participant understands that Data will be transferred to a brokerage firm or share plan service provider designated by the Company which is assisting the Company with the implementation, administration and management of the Plan. The Participant understands that the recipients of Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than the Participant’s country. The Participant understands that he or she may request a list with the names and addresses of any potential recipients of Data by contacting the Participant’s local human resources representative. The Participant authorizes the Company, any Company-designated brokerage firm or share plan service provider and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain, process and transfer Data, in electronic or other form, for the purpose of implementing, administering and managing his or her participation in the Plan. The Participant understands that Data will be held only as long as is necessary to implement, administer and manage the Participant’s participation in the Plan. The Participant understands that he or she may, at any time, view

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Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing his or her local human resources representative. Further, the Participant understands, that he or she is providing the consents herein on a purely voluntary basis. If the Participant does not consent, or if he or she later seeks to revoke his or her consent, the Participant’s employment status or service with the Employer will not be affected; the only consequence of refusing or withdrawing his or her consent is that the Company would not be able to grant the Participant the right to purchase Shares under the Plan or other equity awards or administer or maintain such awards. Therefore, the Participant understands that refusing or withdrawing his or her consent may affect the Participant’s ability to participate in the Plan. For more information on the consequences of the Participant’s refusal to consent or withdrawal of consent, the Participant understands that he or she may contact his or her local human resources representative.

10. Electronic Delivery and Participation. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means or to request the Participant’s consent to participate in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an online or electronic system established and maintained by the Company or any third party designated by the Company.

11. Notices. Any notices provided for in this Agreement or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to the Participant, five (5) days after deposit in the United States mail, postage prepaid, addressed to the Participant at the last address he or she provided to the Company. Any such notices from the Company to the Participant may also be delivered through the Company’s electronic mail system (during the Participant’s Continuous Service) or at the last email address the Participant provided to the Company (after termination of the Participant’s Continuous Service).

12. Choice of Law and Venue. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of California, without regard to such state’s conflict of laws rules, as provided in the Plan. For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by this grant or the Agreement, the parties hereby submit and consent to the exclusive jurisdiction of the State of California and agree that such litigation shall be conducted only in the courts of Santa Clara County, California, or the federal courts for the United States for the Northern District of California, and no other courts, where this grant is made and/or to be performed.

13. Country-Specific Provisions. The Option shall be subject to any special provisions set forth in Exhibit A for the Participant’s country, if any. If the Participant relocates to one of the countries included in Exhibit A during the life of the Option or while holding Shares acquired upon exercise of the Option, the special provisions for such country shall apply to the Participant, to the extent the Company determines that the application of such provisions is necessary or advisable in order to comply with applicable laws with regard to the acquisition, issuance or sale of the Shares or facilitate the administration of the Plan. Exhibit A constitutes part of this Agreement.

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14. Imposition of Other Requirements. The Company reserves the right to impose other requirements on the Option and the Shares acquired upon exercise of the Option, to the extent the Company determines it is necessary or advisable in order to comply with applicable laws with regard to the acquisition, issuance or sale of Shares or facilitate the administration of the Plan, and to require the Participant to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

15. Insider Trading Restrictions/Market Abuse Laws. Without limitation to any specific information stated in Exhibit A, depending on the Participant’s country, he or she may be subject to insider trading restrictions and/or market abuse laws which may affect the Participant’s ability to acquire or sell Shares or rights to Shares (e.g., options) under the Plan during such times as he or she is considered to have “inside information” regarding the Company (as defined by the laws in my country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. The Participant is responsible for ensuring compliance with any applicable restrictions. The Participant should consult the Participant’s personal legal advisor on this matter.

16. Foreign Asset/Account Reporting; Exchange Controls. Without limitation to any specific information stated in Exhibit A, the Participant acknowledges that his or her country may have certain foreign asset and/or account reporting requirements and/or exchange controls which may affect the Participant’s ability to purchase or hold Shares subject to the Plan or cash received from participating in the Plan (including from any dividends received or sale proceeds arising from the sale of Shares) in a brokerage or bank account outside the Participant’s country. He or she may be required to report such accounts, assets or transactions to the tax or other authorities in the Participant’s country. He or she also may be required to repatriate sale proceeds or other funds received as a result of the Participant’s participation in the Plan to his or her country through a designated bank or broker and/or within a certain time after receipt. The Participant further acknowledges that it is his or her responsibility to be compliant with such regulations, and that he or she should consult the Participant’s personal legal advisor for any details.

17. Waiver. The Participant acknowledges that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Participant or any other participant.

18. Recoupment.

(a) Compensation Recovery for Fraud and Misconduct Policy. The Participant hereby acknowledges and agrees that, to the extent he or she is or becomes subject to the Seagate Technology Public Limited Company Compensation Recovery for Fraud and Misconduct Policy, as amended from time to time (the “Compensation Recovery Policy”), the terms and conditions of the Policy are hereby incorporated by reference into this Agreement and shall apply to (a) the Option, (b) each outstanding share award granted or issued to the Participant (pursuant to which Shares may be issued or payments deriving their value from the Shares may be made), and (c) the gain received in connection with the vesting, exercise and/or

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issuance of any share award (i.e., the market value of the Shares on the vesting, exercise and/or issuance date, as applicable, less (i) any price paid for the Shares and (ii) any Tax-Related Items withheld from or paid by Participant in connection with the vesting, exercise and/or issuance of the share award), in each case without regard to whether such award was granted or issued under a share plan of the Company, a predecessor to the Company or a company acquired by the Company or outside a share plan; provided, however, that such award was granted or such gain was received within the three years prior to the Date of Grant; and provided, further, that no share award granted prior to January 29, 2009 shall be subject to the terms of the Compensation Recovery Policy. A copy of the current version of the Compensation Recovery Policy is attached to this Agreement as Exhibit B.

(b) Other Required Recoupments. Without derogating from the terms of Section 18(a) hereof, as an additional condition of receiving the Option, the Participant agrees that the Option and any benefits or proceeds the Participant may receive hereunder shall be subject to forfeiture and/or repayment to the Company to the extent required (i) under the terms of any other recoupment or “clawback” policy adopted by the Company, as may be amended from time to time (and such requirements shall be deemed incorporated into this Agreement without the Participant’s consent), or (ii) to comply with any requirements imposed under applicable laws and/or the rules and regulations of the securities exchange or inter-dealer quotation system on which the Shares are listed or quoted, including, without limitation, pursuant to Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Further, if the Participant receives any amount in excess of what the Participant should have received under the terms of the Option for any reason (including without limitation by reason of a financial restatement, mistake in calculations or administrative error), all as determined by the Committee, then the Participant shall be required to promptly repay any such excess amount to the Company.

(c) Execution of Recoupment. The Participant hereby irrevocably appoints the Company as the Participant’s true and lawful attorney for the purpose of undertaking all actions and executing all deeds and documentation that may be required to be executed to enforce the recovery of compensation pursuant to the Compensation Recovery Policy under Section 18(a) hereof or pursuant to any other required recoupment under Section 18(b).

19. Amendments. The Committee at any time, and from time to time, may amend the terms of the Option; provided, however, that the rights under any Option shall not be materially impaired by any such amendment unless (a) the Company requests the consent of the Participant and (b) the Participant consents in writing.

20. Language. If the Participant has received this or any other document related to the Plan or this Option translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

21. Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

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22. Participant’s Acknowledgements. By indicating acceptance of the Option through the Company’s online acceptance procedure, the Participant acknowledges that: (a) he or she has received, and understands and agrees to the terms of, this Agreement and the Plan (including any exhibits to each document), (b) he or she accepts the Option on the terms and conditions set forth in this Agreement and the Plan (including any exhibits to each document), and (c) this Agreement and the Plan (including any exhibits to each document) set forth the entire understanding between the Participant and the Company regarding the rights to acquire the Shares subject to this Option and supersede all prior oral and written agreements with respect thereto.

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EX-10.2

Exhibit 10.2

SEAGATE TECHNOLOGY PUBLIC LIMITED COMPANY

2012 EQUITY INCENTIVE PLAN

RESTRICTED SHARE UNIT AGREEMENT

1. Grant of Restricted Share Units. Seagate Technology Public Limited Company, a public company incorporated under the laws of the Republic of Ireland with limited liability (the “Company”), hereby grants to you (the Participant named in Section 2 below) the number of Restricted Share Units set forth in Section 2 below subject to the terms and conditions of the Seagate Technology Public Limited Company 2012 Equity Incentive Plan, as may be amended from time to time and including any exhibits thereto (the “Plan”) and this Restricted Share Unit Agreement, including any exhibits hereto (the “Agreement”) (collectively, the “Award”). In the event of a conflict between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall govern. Unless otherwise defined in this Agreement, any capitalized term used in this Agreement shall have the meaning assigned to such term in the Plan.

2. Award Terms. Subject to further detail included in this Agreement, the key terms related to the Award are as follows:

(a) Participant.

(b) Global ID Number.

(c) Date of Grant.

(d) Grant Number.

(e) Vesting Commencement Date.

(f) Number of Restricted Share Units.

(g) Vesting Schedule. Subject to your Continuous Service with the Company or one of its Affiliates, 25% of the Restricted Share Units shall vest each year on the first four anniversaries of the Vesting Commencement Date, subject to the vesting conditions described in Section 3 below. If, on any vesting date, this Vesting Schedule would result in the vesting of a fraction of a Share, such fraction shall be rounded down to the nearest whole Share.

3. Vesting and Settlement.

(a) Subject to Sections 3(b), 3(c) and 3(d) below, the Restricted Share Units will vest as provided in Section 2 above.

(b) In the event of your termination of Continuous Service on account of your death, you shall be deemed to have completed an additional year of service as of the date of such termination.

(c) Subject to the terms of the Seagate Technology Executive Severance and Change in Control Plan, as amended from time to time, or other similar plan (the “Severance Plan”), in the event of your termination of Continuous Service for any reason, you shall forfeit any and all Restricted Share Units that have not vested as of the date of such termination, as further described in Section 8(l) below.

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(d) The Committee may, in its sole discretion, suspend vesting of the Restricted Share Units if you are on a leave of absence.

(e) Upon the vesting of any Restricted Share Units, as promptly as is reasonably practicable (but in any event no later than March 15 of the calendar year following the calendar year of vesting), Shares (which shall be fully paid up) shall be issued to you, and the Company shall deliver to you appropriate documentation evidencing the number of Shares issued in settlement of such vested Restricted Share Units. However, the settlement of the Restricted Share Units shall be conditioned upon your making adequate provision for Tax-Related Items, as discussed in Section 7 below.

4. Compliance with Law. Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from such registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required to deliver any Shares issuable upon vesting of the Restricted Share Units prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign law or under rulings or regulations of the U.S. Securities and Exchange Commission or of any other governmental regulatory body, or prior to the obtaining of any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable.

5. Shareholder Rights. You shall not be, nor have any of the rights or privileges of, a shareholder of the Company in respect of the Shares subject to the Restricted Share Units unless and until such Shares have been issued by the Company to you. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Article 12 of the Plan.

6. Transferability. The Restricted Share Units may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by you other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate.

7. Responsibility for Taxes.

(a) Regardless of any action the Company or any of its Affiliates take with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items is and remains your responsibility and may exceed the amount, if any, actually withheld by the Company or the Affiliate. You further acknowledge that the Company and/or the Affiliate (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including, but not limited to, the grant, vesting or settlement of the Restricted Share Units, the issuance of Shares, the subsequent sale of Shares acquired pursuant to such issuance and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Award to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. Further, if you are subject to Tax-Related Items in more than one jurisdiction, you acknowledge that the Company and/or the Affiliate may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

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(b) Subject to Sections 7(c) and (d) below, your acceptance of this Agreement constitutes your instruction and authorization to your brokerage firm (or, in the absence of a designated brokerage firm, any brokerage firm determined acceptable to the Company for such purpose) to sell on your behalf the number of whole Shares from those Shares issuable to you upon settlement of the Restricted Share Units as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy any applicable withholding obligation for Tax-Related Items. Such Shares will be sold on the day the Tax-Related Items are determined or as soon thereafter as practicable. You will be responsible for all brokers’ fees and other costs of sale, which fees and costs may be deducted from the proceeds of the foregoing sale of Shares, and you agree to indemnify and hold the Company and any brokerage firm selling such Shares harmless from any losses, costs, damages, or expenses relating to any such sale. To the extent the proceeds of such sale exceed your Tax-Related Items, such excess cash will be deposited into the securities account established with the brokerage firm for the settlement of your Restricted Share Units. You acknowledge that the broker or its designee is under no obligation to arrange for such sale at any particular price, and that the proceeds of any such sale may not be sufficient to satisfy your Tax-Related Items.

(c) At any time before any taxable or tax withholding event, the Committee may, in its sole discretion, determine that the Company or the Affiliate will satisfy any tax withholding obligation with respect to the Tax-Related Items by withholding Shares to be issued upon vesting of the Restricted Share Units. To the extent the Committee makes such a determination, you hereby authorize the Company to withhold Shares otherwise issuable upon vesting of the Restricted Share Units having a Fair Market Value on the date of vesting equal to the amount sufficient to satisfy the Tax-Related Items.

(d) In the event that, in the reasonable determination of the Company and/or its Affiliate, such tax withholding by the sale or withholding of Shares as described in Sections 7(b) and (c) above is problematic under applicable tax or securities law or has materially adverse accounting consequences, you authorize the Company and/or the Affiliate to satisfy any applicable withholding obligation for Tax-Related Items by withholding from your wages or other cash compensation paid to you by the Company and/or the Affiliate, within legal limits, or by requiring you to tender a cash payment to the Company or the Employer in the amount of the Tax-Related Items.

(e) Depending on the withholding method, the Company or an Affiliate may, if necessary, withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including up to maximum applicable rates, in which case you may receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent in Shares. If the obligation for the Tax-Related Items is satisfied by withholding in Shares as described in Section 7(c) above, for tax purposes, you will be deemed to have been issued the full number of Shares subject to the Restricted Share Units, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of your participation in the Plan.

(f) The Company or the Affiliate may refuse to issue or deliver the Shares or the proceeds of the sale of Shares unless and until you have complied with your obligations related to the Tax-Related Items described in this Section 7.

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8. Nature of the Award. In accepting the Award, you acknowledge, understand and agree that:

(a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be amended, suspended or terminated by the Company at any time;

(b) the Award is voluntary and occasional and does not create any contractual or other right to receive future awards of Restricted Share Units, or benefits in lieu of Restricted Share Units, even if Restricted Share Units have been awarded repeatedly in the past;

(c) all decisions with respect to future Restricted Share Unit awards, if any, will be at the sole discretion of the Company;

(d) you are voluntarily participating in the Plan;

(e) your participation in the Plan will not create a right to employment and shall not interfere with the ability of the Company or any Affiliate to terminate your Continuous Service at any time;

(f) the Award and any Shares subject to the Award, and the income and value of the same, are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Company or any Affiliate, and which is outside the scope of your employment or service contract, or consulting arrangement, if any;

(g) the Award and any Shares subject to the Award, and the income and value of the same, are not intended to replace any pension rights or compensation;

(h) the Award and any Shares subject to the Award are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any Affiliate;

(i) the Award will not be interpreted to form an employment or service contract or relationship with the Company or any Affiliate;

(j) the future value of the underlying Shares is unknown and cannot be predicted with certainty;

(k) no claim or entitlement to compensation or damages shall arise from forfeiture of the Award resulting from termination of your Continuous Service (regardless of the reason for the termination and whether or not the termination is in breach of any employment law in the country where you reside, even if such law is otherwise applicable to your employment benefits, and whether or not such termination is later found to be invalid);

(l) unless otherwise agreed with the Company, the Award and the Shares subject to the Award, and the income and value of the same, are not granted as consideration for, or in connection with, the service you may provide as a director of an Affiliate of the Company; and

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(m) for purposes of the Award, your Continuous Service will be considered terminated as of the date you are no longer actively employed by and/or providing services to the Company or an Affiliate, as applicable; your right, if any, to vest in the Restricted Share Units under the Plan after termination of Continuous Service (regardless of whether the termination is in breach of any employment law in the country where you reside, even if such law is otherwise applicable to your employment benefits, and whether or not such termination is later found to be invalid) will be measured by the date you cease to be actively employed and/or actively providing services and will not be extended by any notice period mandated under any employment law in the country where you reside, even if such law is otherwise applicable to your employment benefits (e.g., active employment would not include a period of “garden leave” or similar period); the Committee, in its sole discretion, shall determine when you are no longer actively employed for purposes of the Award (including whether you may still be considered actively employed while on a leave of absence).

9. No Advice Regarding Grant. The Company and its Affiliates are not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying Shares. You should consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.

10. Data Privacy. You hereby explicitly and unambiguously consent to the collection, use, processing and transfer, in electronic or other form, of your personal data as described in this Agreement and any other Award materials by and among, as applicable, the Company and its Affiliates (whether inside or outside the European Economic Area) for the exclusive purpose of implementing, administering and managing your participation in the Plan.

You understand that the Company and its Affiliates may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, email address, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares or directorships held in the Company, details of all Restricted Share Units or any other entitlement to shares awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).

You understand that Data will be transferred to a brokerage firm or share plan service provider designated by the Company which is assisting the Company with the implementation, administration and management of the Plan. You understand that the recipients of Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of Data by contacting your local human resources representative. You authorize the Company, any Company-designated brokerage firm or share plan service provider and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain, process and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing your participation in the Plan. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your

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local human resources representative. Further, you understand that you are providing the consents herein on a purely voluntary basis. If you do not consent, or if you later seek to revoke your consent, your employment status or service with the Employer will not be affected; the only consequence of refusing or withdrawing your consent is that the Company would not be able to grant you the right to purchase Shares under the Plan or other equity awards or administer or maintain such awards. Therefore, you understand that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative.

11. Electronic Delivery and Participation. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means or request that you consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an online or electronic system established and maintained by the Company or any third party designated by the Company.

12. Notices. Any notices provided for in your Award or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. Any such notices from the Company to you may also be delivered to you through the Company’s electronic mail system (during your Continuous Service) or at the last email address you provided to the Company (after termination of your Continuous Service).

13. Choice of Law and Venue. The Award is governed by, and subject to, the laws of the State of California, without regard to such state’s conflict of laws rules, as provided in the Plan. For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by this Award, the parties hereby submit to and consent to the exclusive jurisdiction of the State of California and agree that such litigation shall be conducted only in the courts of Santa Clara County, California, or the federal courts for the United States for the Northern District of California, and no other courts, where this Award is made and/or to be performed.

14. Country-Specific Provisions. The Award shall be subject to any special provisions set forth in Exhibit A for your country, if any. If you relocate to one of the countries included in Exhibit A during the life of the Award or while holding Shares acquired upon vesting of the Restricted Share Units, the special provisions for such country shall apply to you, to the extent the Company determines that the application of such provisions is necessary or advisable in order to comply with applicable laws with regard to the acquisition, issuance or sale of the Shares or facilitate the administration of the Plan. Exhibit A constitutes part of this Agreement.

15. Imposition of Other Requirements. The Company reserves the right to impose other requirements on the Award and the Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with applicable laws with regard to the acquisition, issuance or sale of the Shares or facilitate the administration of the Plan, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

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16. Insider Trading Restrictions/Market Abuse Laws. Without limitation to any specific information stated in Exhibit A, depending on your country, you may be subject to insider trading restrictions and/or market abuse laws, which may affect your ability to acquire or sell Shares or rights to Shares (e.g., Restricted Share Units) under the Plan during such times as you are considered to have “inside information” regarding the Company (as defined by the laws in your country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. You are responsible for ensuring compliance with any applicable restrictions. You should consult your personal legal advisor on this matter.

17. Foreign Asset/Account Reporting; Exchange Controls. Without limitation to any specific information stated in Exhibit A, you acknowledge that your country may have certain foreign asset and/or account reporting requirements and/or exchange controls which may affect your ability to purchase or hold Shares subject to the Plan or cash received from participating in the Plan (including from any dividends received or sale proceeds arising from the sale of Shares) in a brokerage or bank account outside your country. You may be required to report such accounts, assets or transactions to the tax or other authorities in your country. You also may be required to repatriate sale proceeds or other funds received as a result of your participation in the Plan to your country through a designated bank or broker and/or within a certain time after receipt. You further acknowledge that it is your responsibility to be compliant with such regulations, and that you should consult your personal legal advisor for any details.

18. Waiver. You acknowledge that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by you or any other participant.

19. Recoupment.

(a) Compensation Recovery for Fraud and Misconduct Policy. You hereby acknowledge and agree that to the extent you are or become subject to the Seagate Technology Public Limited Company Compensation Recovery for Fraud and Misconduct Policy, as amended from time to time (the “Compensation Recovery Policy”), the terms and conditions of the Policy are hereby incorporated by reference into this Agreement and shall apply to (a) the Award, (b) each outstanding share award granted or issued to you (pursuant to which Shares may be issued or payments deriving their value from the Shares may be made), and (c) the gain received in connection with the vesting, exercise and/or issuance of any share award (i.e., the market value of the Shares on the vesting, exercise and/or issuance date, as applicable, less (i) any price paid for the Shares and (ii) any Tax-Related Items withheld from or paid by you in connection with the vesting, exercise and/or issuance of the share award), in each case without regard to whether such award was granted or issued under a share plan of the Company, a predecessor to the Company or a company acquired by the Company or outside a share plan; provided, however, that such award was granted or such gain was received within the three years prior to the Date of Grant; and provided, further, that no share award granted prior to January 29, 2009 shall be subject to the terms of the Compensation Recovery Policy. A copy of the current version of the Compensation Recovery Policy is attached to this Agreement as Exhibit B.

(b) Other Required Recoupments. Without derogating from the terms of Section 16(a) hereof, as an additional condition of receiving the Award, you agree that the Award and any benefits or proceeds you may receive hereunder shall be subject to forfeiture and/or repayment to the Company to the extent required (i) under the terms of any other recoupment or

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“clawback” policy adopted by the Company, as may be amended from time to time (and such requirements shall be deemed incorporated into this Agreement without your consent), or (ii) to comply with any requirements imposed under applicable laws and/or the rules and regulations of the securities exchange or inter-dealer quotation system on which the Shares are listed or quoted, including, without limitation, pursuant to Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Further, if you receive any amount in excess of what you should have received under the terms of the Award for any reason (including without limitation by reason of a financial restatement, mistake in calculations or administrative error), all as determined by the Committee, then you shall be required to promptly repay any such excess amount to the Company.

(c) Execution of Recoupment. You hereby irrevocably appoints the Company as the your true and lawful attorney for the purpose of undertaking all actions and executing all deeds and documentation that may be required to be executed to enforce the recovery of compensation pursuant to the Compensation Recovery Policy under Section 19(a) hereof or pursuant to any other required recoupment under Section 19(b).

20. Amendments. The Committee at any time, and from time to time, may amend the terms of the Award; provided, however, that the rights under any Award shall not be materially impaired by any such amendment unless (a) the Company requests your consent and (b) you consent in writing.

21. Language. If you have received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

22. Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

23. Acknowledgements. By indicating acceptance of the Award through the Company’s online acceptance procedure, you acknowledge that: (a) you have received, and understand and agree to the terms of, this Agreement and the Plan (including any exhibits to each document), (b) you accept the Award on the terms and conditions set forth in this Agreement and the Plan (including any exhibits to each document), and (c) this Agreement and the Plan (including any exhibits to each document) set forth the entire understanding between you and the Company regarding the rights to acquire the Shares subject to this Award and supersede all prior oral and written agreements with respect thereto.

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EX-10.3

Exhibit 10.3

SEAGATE TECHNOLOGY PUBLIC LIMITED COMPANY

2012 EQUITY INCENTIVE PLAN

EXECUTIVE PERFORMANCE UNIT AGREEMENT

1. Grant of Performance Units. Seagate Technology Public Limited Company, a public company incorporated under the laws of the Republic of Ireland with limited liability (the “Company”), hereby grants to you (the Participant named in Section 2 below) the number of Performance Units set forth in Section 2 below subject to the terms and conditions of the Seagate Technology Public Limited Company 2012 Equity Incentive Plan, as may be amended from time to time and including any exhibits thereto (the “Plan”) and this Performance Unit Agreement, including any exhibits hereto (the “Agreement”) (collectively, the “Award”). In the event of a conflict between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall govern. Unless otherwise defined in this Agreement, any capitalized term used in this Agreement shall have the meaning assigned to such term in the Plan.

2. Award Terms. Subject to further detail included in this Agreement, the key terms related to the Award are as follows:

(a) Participant.

(b) Global ID Number.

(c) Date of Grant.

(d) Grant Number.

(e) Vesting Commencement Date.

(f) Number of Performance Units.

(g) Vesting Schedule. As set forth in Schedule A attached hereto.

3. Vesting and Settlement.

(a) Subject to the limitations contained herein, the Performance Units will vest as provided in Schedule A attached hereto

(b) Upon the vesting of any Performance Units, as promptly as is reasonably practicable (but in any event no later than March 15 of the calendar year following the calendar year of vesting), Shares (which shall be fully paid up) shall be issued to you, and the Company shall deliver to you appropriate documentation evidencing the number of Shares issued in settlement of such vested Performance Units. However, the settlement of the Performance Units shall be conditioned upon your making adequate provision for Tax-Related Items, as discussed in Section 7 below.

4. Compliance with Law. Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from such registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required to deliver any Shares issuable upon vesting of the Performance Units prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign law or under rulings or regulations of the U.S. Securities and Exchange Commission or of any other governmental regulatory body, or prior to the obtaining of any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable.

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5. Shareholder Rights. You shall not be, nor have any of the rights or privileges of, a shareholder of the Company in respect of the Shares subject to the Performance Units unless and until such Shares have been issued by the Company to you. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Article 12 of the Plan.

6. Transferability. The Performance Units may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by you other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate.

7. Responsibility for Taxes.

(a) Regardless of any action the Company or any of its Affiliates take with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items is and remains your responsibility and may exceed the amount, if any, actually withheld by the Company or the Affiliate, if any. You further acknowledge that the Company and/or the Affiliate (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including, but not limited to, the grant, vesting or settlement of the Performance Units, the issuance of Shares, the subsequent sale of Shares acquired pursuant to such issuance and the receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the terms of the grant or any aspect of the Award to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. Further, if you are subject to Tax-Related Items in more than one jurisdiction, you acknowledge that the Company and/or the Affiliate may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

(b) Subject to Sections 7(c) and (d) below, your acceptance of this Agreement constitutes your instruction and authorization to your brokerage firm (or, in the absence of a designated brokerage firm, any brokerage firm determined acceptable to the Company for such purpose) to sell on your behalf the number of whole Shares from those Shares issuable to you upon settlement of the Performance Units as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy any applicable withholding obligation for Tax-Related Items. Such Shares will be sold on the day the Tax-Related Items are determined or as soon thereafter as practicable. You will be responsible for all brokers’ fees and other costs of sale, which fees and costs may be deducted from the proceeds of the foregoing sale of Shares, and you agree to indemnify and hold the Company and any brokerage firm selling such Shares harmless from any losses, costs, damages, or expenses relating to any such sale. To the extent the proceeds of such sale exceed your Tax-Related Items, such excess cash will be deposited into the securities account established with the brokerage firm for the settlement of your Performance Units. You acknowledge that the broker or its designee is under no obligation to arrange for such sale at any particular price, and that the proceeds of any such sale may not be sufficient to satisfy your Tax-Related Items.

(c) At any time before any taxable or tax withholding event, the Committee may, in its sole discretion, determine that the Company or the Affiliate will satisfy any tax withholding obligation with respect to the Tax-Related Items by withholding Shares to be issued upon vesting of the Performance Units. To the extent the Committee makes such a determination, you hereby authorize the Company to withhold Shares otherwise issuable upon vesting of the Performance Units having a Fair Market Value on the date of vesting equal to the amount sufficient to satisfy the Tax-Related Items.

(d) In the event that, in the reasonable determination of the Company and/or its Affiliate, such tax withholding by the sale or withholding of Shares as described in Sections 7(b) and (c) above is problematic under applicable tax or securities law or has materially adverse accounting consequences, you authorize the Company and/or the Affiliate to satisfy any applicable withholding obligation for Tax-Related Items by withholding from your wages or other cash compensation paid to you by the Company and/or the Affiliate, within legal limits, or by requiring you to tender a cash payment to the Company or the Employer in the amount of the Tax-Related Items.

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(e) Depending on the withholding method, the Company or an Affiliate may, if necessary, withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including up to maximum applicable rates, in which case I may receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent in Shares. If the obligation for the Tax-Related Items is satisfied by withholding in Shares as described in Section 7(c) above, for tax purposes, you will be deemed to have been issued the full number of Shares subject to the Performance Units, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of your participation in the Plan.

(f) The Company or the Affiliate may refuse to issue or deliver the Shares or the proceeds of the sale of Shares unless and until you have complied with your obligations related to the Tax-Related Items described in this Section 7.

8. Nature of the Award. In accepting the Award, you acknowledge, understand and agree that:

(a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be amended, suspended or terminated by the Company at any time;

(b) the Award is voluntary and occasional and does not create any contractual or other right to receive future awards of Performance Units, or benefits in lieu of Performance Units, even if Performance Units have been awarded repeatedly in the past;

(c) all decisions with respect to future Performance Unit awards, if any, will be at the sole discretion of the Company;

(d) you are voluntarily participating in the Plan;

(e) your participation in the Plan will not create a right to employment and shall not interfere with the ability of the Company or any Affiliate to terminate your Continuous Service at any time;

(f) the Award and any Shares subject to the Award, and the income and value of the same, are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Company or any Affiliate, and which is outside the scope of your employment or service contract or consulting arrangement, if any;

(g) the Award and any Shares subject to the Award, and the income and value of the same, are not intended to replace any pension rights or compensation;

(h) the Award and any Shares subject to the Award are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company, or any Affiliate;

(i) the Award will not be interpreted to form an employment or service contract or relationship with the Company or any Affiliate;

(j) the future value of the underlying Shares is unknown and cannot be predicted with certainty;

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(k) no claim or entitlement to compensation or damages shall arise from forfeiture of the Award resulting from termination of your Continuous Service (regardless of the reason for the termination and whether or not the termination is in breach of any employment law in the country where you reside, even if such law is otherwise applicable to your employment benefits, and whether or not such termination is later found to be invalid); and

(l) unless otherwise agreed with the Company, the Award and the Shares subject to the Award, and the income and value of the same, are not granted as consideration for, or in connection with, the service you may provide as a director of an Affiliate of the Company; and

(m) for purposes of the Award, your Continuous Service will be considered terminated as of the date you are no longer actively employed by and/or providing services to the Company or an Affiliate, as applicable; your right, if any, to vest in the Performance Units under the Plan after termination of Continuous Service (regardless of whether the termination is in breach of any employment law in the country where you reside, even if such law is otherwise applicable to your employment benefits, and whether or not such termination is later found to be invalid) will be measured by the date you cease to be actively employed and/or actively providing services and will not be extended by any notice period mandated under any employment law in the country where you reside, even if such law is otherwise applicable to your employment benefits (e.g., active employment would not include a period of “garden leave” or similar period); the Committee, in its sole discretion, shall determine when you are no longer actively employed for purposes of the Award (including whether you may still be considered actively employed while on a leave of absence).

9. No Advice Regarding Grant. The Company and its Affiliates are not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying Shares. You should consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.

10. Data Privacy. You hereby explicitly and unambiguously consent to the collection, use, processing and transfer, in electronic or other form, of your personal data as described in this Agreement and any other Award materials by and among, as applicable, the Company and its Affiliates (whether inside or outside the European Economic Area) for the exclusive purpose of implementing, administering and managing your participation in the Plan.

You understand that the Company and its Affiliates may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, email address, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares or directorships held in the Company, details of all Performance Units or any other entitlement to shares awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).

You understand that Data will be transferred to a brokerage firm or share plan service provider designated by the Company which is assisting the Company with the implementation, administration and management of the Plan. You understand that the recipients of Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of Data by contacting your local human resources representative. You authorize the Company, any Company-designated brokerage firm or share plan service provider and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain, process and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing your participation in the Plan. You understand that Data will be held only as long as is necessary to implement, administer and manage your

4

participation in the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative. Further, you understand that you are providing the consents herein on a purely voluntary basis. If you do not consent, or if later you seek to revoke your consent, your employment status or service with the Employer will not be affected; the only consequence of refusing or withdrawing your consent is that the Company would not be able to grant you the right to purchase Shares under the Plan or other equity awards or administer or maintain such awards. Therefore, you understand that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative.

11. Electronic Delivery and Participation. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means or request that you consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an online or electronic system established and maintained by the Company or any third party designated by the Company.

12. Notices. Any notices provided for in your Award or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. Any such notices from the Company to you may also be delivered to you through the Company’s electronic mail system (during your Continuous Service) or at the last email address you provided to the Company (after termination of your Continuous Service).

13. Choice of Law and Venue. The Award is governed by, and subject to, the laws of the State of California, without regard to such state’s conflict of laws rules, as provided in the Plan. fFor purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by this Award, the parties hereby submit to and consent to the exclusive jurisdiction of the State of California and agree that such litigation shall be conducted only in the courts of Santa Clara County, California, or the federal courts for the United States for the Northern District of California, and no other courts, where this Award is made and/or to be performed.

14. Country-Specific Provisions. The Award shall be subject to any special provisions set forth in Exhibit A for your country, if any. If you relocate to one of the countries included in Exhibit A during the life of the Award or while holding Shares acquired upon vesting of the Performance Units, the special provisions for such country shall apply to you, to the extent the Company determines that the application of such provisions is necessary or advisable in order to comply with applicable laws with regard to the acquisition, issuance or sale of the Shares or facilitate the administration of the Plan. Exhibit A constitutes part of this Agreement.

15. Imposition of Other Requirements. The Company reserves the right to impose other requirements on the Award and the Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with applicable laws with regard to the acquisition, issuance or sale of the Shares or facilitate the administration of the Plan, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

16. Insider Trading Restrictions/Market Abuse Laws. Without limitation to any specific information stated in Exhibit A, depending on your country, you may be subject to insider trading restrictions and/or market abuse laws, which may affect your ability to acquire or sell Shares or rights to Shares (e.g., Awards) under the Plan during such times as you are considered to have “inside information” regarding the Company (as defined by the laws in your country). Any restrictions under these laws or regulations are separate from and in addition to

5

any restrictions that may be imposed under any applicable Company insider trading policy. You are responsible for ensuring compliance with any applicable restrictions. You should consult your personal legal advisor on this matter.

17. Foreign Asset/Account Reporting; Exchange Controls. Without limitation to any specific information stated in Exhibit A, you acknowledge that your country may have certain foreign asset and/or account reporting requirements and/or exchange controls which may affect your ability to purchase or hold Shares subject to the Plan or cash received from participating in the Plan (including from any dividends received or sale proceeds arising from the sale of Shares) in a brokerage or bank account outside my country. You may be required to report such accounts, assets or transactions to the tax or other authorities in your country. You also may be required to repatriate sale proceeds or other funds received as a result of your participation in the Plan to your country through a designated bank or broker and/or within a certain time after receipt. You further acknowledge that it is your responsibility to be compliant with such regulations, and that you should consult your personal legal advisor for any details.

18. Waiver. You acknowledge that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by you or any other participant.

19. Recoupment.

(a) Compensation Recovery for Fraud and Misconduct Policy. You hereby acknowledge and agree that to the extent you are or become subject to the Seagate Technology Public Limited Company Compensation Recovery for Fraud and Misconduct Policy, as amended from time to time (the “Compensation Recovery Policy”), the terms and conditions of the Policy are hereby incorporated by reference into this Agreement and shall apply to (a) the Award, (b) each outstanding share award granted or issued to you (pursuant to which Shares may be issued or payments deriving their value from the Shares may be made), and (c) the gain received in connection with the vesting, exercise and/or issuance of any share award (i.e., the market value of the Shares on the vesting, exercise and/or issuance date, as applicable, less (i) any price paid for the Shares and (ii) any Tax-Related Items withheld from or paid by you in connection with the vesting, exercise and/or issuance of the share award), in each case without regard to whether such award was granted or issued under a share plan of the Company, a predecessor to the Company or a company acquired by the Company or outside a share plan; provided, however, that such award was granted or such gain was received within the three years prior to the Date of Grant; and provided, further, that no share award granted prior to January 29, 2009 shall be subject to the terms of the Compensation Recovery Policy. A copy of the current version of the Compensation Recovery Policy is attached to this Agreement as Exhibit B.

(b) Other Required Recoupments. Without derogating from the terms of Section 16(a) hereof, as an additional condition of receiving the Award, you agree that the Award and any benefits or proceeds you may receive hereunder shall be subject to forfeiture and/or repayment to the Company to the extent required (i) under the terms of any other recoupment or “clawback” policy adopted by the Company, as may be amended from time to time (and such requirements shall be deemed incorporated into this Agreement without your consent), or (ii) to comply with any requirements imposed under applicable laws and/or the rules and regulations of the securities exchange or inter-dealer quotation system on which the Shares are listed or quoted, including, without limitation, pursuant to Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Further, if you receive any amount in excess of what you should have received under the terms of the Award for any reason (including without limitation by reason of a financial restatement, mistake in calculations or administrative error), all as determined by the Committee, then you shall be required to promptly repay any such excess amount to the Company.

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(c) Execution of Recoupment. You hereby irrevocably appoint the Company as your true and lawful attorney for the purpose of undertaking all actions and executing all deeds and documentation that may be required to be executed to enforce the recovery of compensation pursuant to the Compensation Recovery Policy under Section 19(a) hereof or pursuant to any other required recoupment under Section 19(b)

20. Amendments. The Committee at any time, and from time to time, may amend the terms of the Award; provided, however, that the rights under any Award shall not be materially impaired by any such amendment unless (a) the Company requests your consent and (b) you consent in writing.

21. Language. If you have received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

22. Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

23. Acknowledgements. By indicating acceptance of the Award through the Company’s online acceptance procedure, you acknowledge that: (a) you have received, and understand and agree to the terms of, this Agreement and the Plan (including any exhibits to each document), (b) you accept the Award on the terms and conditions set forth in this Agreement and the Plan (including any exhibits to each document), and (c) this Agreement and the Plan (including any exhibits to each document) set forth the entire understanding between you and the Company regarding the rights to acquire the Shares subject to this Award and supersede all prior oral and written agreements with respect thereto.

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EX-10.4

Exhibit 10.4

SEAGATE TECHNOLOGY PUBLIC LIMITED COMPANY

2012 EQUITY INCENTIVE PLAN

RESTRICTED SHARE UNIT AGREEMENT

(OUTSIDE DIRECTORS)

1. Grant of Restricted Share Units. Seagate Technology Public Limited Company, a public company incorporated under the laws of the Republic of Ireland with limited liability (the “Company”), hereby grants to you (the Participant named in Section 2 below) the number of Restricted Share Units set forth in Section 2 below subject to the terms and conditions of the Seagate Technology Public Limited Company 2012 Equity Incentive Plan, as may be amended from time to time and including any exhibits thereto (the “Plan”) and this Restricted Share Unit Agreement, including any exhibits hereto (the “Agreement”) (collectively, the “Award”). In the event of a conflict between the terms of the Plan and the terms of this Agreement, the terms of the Plan shall govern. Unless otherwise defined in this Agreement, any capitalized term used in this Agreement shall have the meaning assigned to such term in the Plan.

2. Award Terms. Subject to further detail included in this Agreement, the key terms related to the Award are as follows:

(a) Participant.

(b) Global ID Number.

(c) Date of Grant.

(d) Grant Number.

(e) Number of Restricted Share Units.

(f) Vesting Schedule. Subject to the terms of the Agreement, including but not limited to Section 3 hereof, and your Continuous Service on the Board, the Award shall vest in full on the earlier of: (i) the first anniversary of the Date of Grant and (ii) one day prior to the next election of Directors following the Date of Grant.

3. Vesting and Settlement.

(a) Subject to Sections 3(b), 3(c) and 3(d) below, the Restricted Share Units will vest as provided in Section 2 above.

(b) In the event of your termination of Continuous Service on account of your death, a pro-rata portion of the Restricted Share Units shall vest, based upon the number of days between the Date of Grant and the date of such termination.

(c) In the event of a Change of Control, the Restricted Share Units shall vest immediately prior to the consummation of the Change of Control, so long as your termination of Continuous Service has not previously occurred.

(d) In the event of your termination of Continuous Service for any other reason, you shall forfeit any and all Restricted Share Units that have not vested as of the date of such termination.

(e) Upon the vesting of any Restricted Share Units, as promptly as is reasonably practicable (but in any event no later than March 15 of the calendar year following the calendar year of vesting), Shares (which shall be fully paid up at the Date of Grant) shall be issued to you, and the Company shall deliver to you appropriate documentation evidencing the number of Shares issued in settlement of such vested Restricted Share Units. However, the settlement of the Restricted Share Units shall be conditioned upon your making adequate provision for Tax-Related Items, as discussed in Section 7 below.

4. Compliance with Law. Notwithstanding any other provision of the Plan or this Agreement, unless there is an available exemption from such registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required to deliver any Shares issuable upon vesting of the Restricted Share Units prior to the completion of any registration or qualification of the Shares under any local, state, federal or foreign law or under rulings or regulations of the U.S. Securities and Exchange Commission or of any other governmental regulatory body, or prior to the obtaining of any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable.

5. Shareholder Rights. You shall not be, nor have any of the rights or privileges of, a shareholder of the Company in respect of the Shares subject to the Restricted Share Units unless and until such Shares have been issued by the Company to you. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Article 12 of the Plan.

6. Transferability. The Restricted Share Units may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by you other than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate.

7. Responsibility for Taxes.

(a) Regardless of any action the Company takes with respect to any or all income tax, social insurance, payment on account or other tax-related items related to your participation in the Plan and legally applicable to you (“Tax-Related Items”), you acknowledge that the ultimate liability for all Tax-Related Items is and remains your responsibility and may exceed the amount, if any, actually withheld by the Company or the Affiliate. You further acknowledge that the Company (i) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including, but not limited to, the grant, vesting or settlement of the Restricted Share Units, the issuance of Shares, the subsequent sale of Shares acquired pursuant to such issuance and the receipt of any dividends; and (ii) does not commit to and is under no obligation to structure the terms of the grant or any aspect of the Award to reduce or eliminate your liability for Tax-Related Items or achieve any particular tax result. Further, if you are subject to Tax-Related Items in more than one jurisdiction, you acknowledge that the Company may be required to withhold or account for Tax-Related Items in more than one jurisdiction.

(b) Subject to Sections 7(c) and 7(d) below, your acceptance of this Agreement constitutes your instruction and authorization to your brokerage firm (or, in the absence of a designated brokerage firm, any brokerage firm determined acceptable to the Company for such

2

purpose) to sell on your behalf the number of whole Shares from those Shares issuable to you upon settlement of the Restricted Share Units as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy any applicable withholding obligation for Tax-Related Items. Such Shares will be sold on the day the Tax-Related Items are to be determined or as soon thereafter as practicable. You will be responsible for all brokers’ fees and other costs of sale, which fees and costs may be deducted from the proceeds of the foregoing sale of Shares, and you agree to indemnify and hold the Company and any brokerage firm selling such Shares harmless from any losses, costs, damages, or expenses relating to any such sale. To the extent the proceeds of such sale exceed your Tax-Related Items, such excess cash will be deposited into the securities account established with the brokerage firm for the settlement of your Restricted Share Units. You acknowledge that the broker or its designee is under no obligation to arrange for such sale at any particular price, and that the proceeds of any such sale may not be sufficient to satisfy your Tax-Related Items.

(c) At any time before any taxable or tax withholding event, the Company may, in its sole discretion, elect to satisfy any withholding obligation with respect to the Tax-Related Items by withholding Shares to be issued upon settlement of the Restricted Share Units; provided, however, that the Committee (as constituted to satisfy Rule 16b-3 of the Exchange Act) shall approve any such election to withhold Shares, to the extent necessary or desirable to exempt the transaction under Rule 16b-3 of the Exchange Act. To the extent the Company (with the Committee’s approval, if applicable) makes such an election, you hereby authorize the Company to withhold Shares otherwise issuable upon settlement of the Restricted Share Units having a Fair Market Value on the date of settlement equal to the amount sufficient to satisfy the Tax-Related Items.

(d) As an alternative or in addition to the withholding mechanisms described in Sections 7(b) and 7(c) above, the Company may, in its sole discretion, elect to satisfy any withholding obligation with respect to the Tax-Related Items by withholding from any cash payment to be made to you by the Company or an Affiliate and/or permit you to pay to the Company any amount of Tax-Related Items that the Company may be required to withhold or account for as a result of your participation in the Plan.

(e) Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including up to maximum applicable rates, in which case you may receive a refund of any over-withheld amount in cash and will have no entitlement to the Share equivalent. If the obligation for Tax-Related Items is satisfied by withholding in Shares as described in Section 7(c) above, for tax purposes, you will be deemed to have been issued the full number of Shares subject to the Restricted Share Units, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items due as a result of any aspect of your participation in the Plan.

(f) The Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares unless and until you have complied with your obligations related to the Tax-Related Items described in this Section 7.

8. Nature of the Award. In accepting the Award, you acknowledge, understand and agree that:

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(a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be amended, suspended or terminated by the Company at any time;

(b) the Award is voluntary and occasional and does not create any contractual or other right to receive future awards of Restricted Share Units, or benefits in lieu of Restricted Share Units, even if Restricted Share Units have been awarded repeatedly in the past;

(c) all decisions with respect to future Restricted Share Unit awards, if any, will be at the sole discretion of the Company;

(d) you are voluntarily participating in the Plan;

(e) your participation in the Plan shall not create any right to continue to serve the Company in the capacity in effect at the Date of Grant and will not affect the right of the Company to terminate your service as a Director pursuant to the Memorandum and Articles of Association of the Company and any applicable provisions of the laws of the Republic of Ireland;

(f) because you are not an employee of the Company, the Award will not be interpreted to form an employment or service contract or relationship with the Company or any Affiliate;

(g) the future value of the underlying Shares is unknown and cannot be predicted with certainty; and

(h) no claim or entitlement to compensation or damages shall arise from forfeiture of the Award resulting from termination of your Continuous Service.

9. No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying Shares. You should consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.

10. Data Privacy. You hereby explicitly and unambiguously consent to the collection, use, processing and transfer, in electronic or other form, of your personal data as described in this Agreement and any other Award materials by and among the Company and its Affiliates (whether inside or outside the European Economic Area) for the exclusive purpose of implementing, administering and managing your participation in the Plan.

You understand that the Company and its Affiliates may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, email address, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares or directorships held in the Company, details of all Restricted Share Units or any other entitlement to shares awarded, canceled, exercised, vested, unvested or outstanding in your favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).

You understand that Data will be transferred to a brokerage firm or share plan service provider designated by the Company which is assisting the Company with the implementation,

4

administration and management of the Plan. You understand that the recipients of Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the United States) may have different data privacy laws and protections than your country. You understand that you may request a list with the names and addresses of any potential recipients of Data by contacting the Company’s Corporate Secretary. You authorize the Company, any Company-designated brokerage firm or share plan service provider and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain, process and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing your participation in the Plan. You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Company’s Corporate Secretary. Further, you understand that you are providing the consents herein on a purely voluntary basis. If you do not consent, or if you later seek to revoke your consent, your employment status or service with the Employer will not be affected; the only consequence of refusing or withdrawing your consent is that the Company would not be able to grant you the right to purchase Shares under the Plan or other equity awards or administer or maintain such awards. Therefore, you understand that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact the Company’s Corporate Secretary.

11. Electronic Delivery and Participation. The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means or request that you consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an online or electronic system established and maintained by the Company or any third party designated by the Company.

12. Notices. Any notices provided for in your Award or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. Any such notices from the Company to you may also be delivered to you at the last email address you provided to the Company.

13. Choice of Law and Venue. The Award is governed by, and subject to, the laws of the State of California, without regard to such state’s conflict of laws rules, as provided in the Plan. For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by this Award, the parties hereby submit to and consent to the exclusive jurisdiction of the State of California and agree that such litigation shall be conducted only in the courts of Santa Clara County, California, or the federal courts for the United States for the Northern District of California, and no other courts, where this Award is made and/or to be performed.

14. Imposition of Other Requirements. The Company reserves the right to impose other requirements on the Award and the Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with applicable laws with regard to the

5

acquisition, issuance or sale of the Shares or facilitate the administration of the Plan, and to require you to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

15. Insider Trading Restrictions/Market Abuse Laws. You may be subject to insider trading restrictions and/or market abuse laws, which may affect your ability to acquire or sell Shares or rights to Shares (e.g., Restricted Share Units) under the Plan during such times as you are considered to have “inside information” regarding the Company (as defined by the laws in your country). Any restrictions under these laws or regulations are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. You are responsible for ensuring compliance with any applicable restrictions. You should consult your personal legal advisor on this matter.

16. Foreign Asset/Account Reporting; Exchange Controls. Your country may have certain foreign asset and/or account reporting requirements and/or exchange controls which may affect your ability to purchase or hold Shares subject to the Plan or cash received from participating in the Plan (including from any dividends received or sale proceeds arising from the sale of Shares) in a brokerage or bank account outside your country. You may be required to report such accounts, assets or transactions to the tax or other authorities in my country. You also may be required to repatriate sale proceeds or other funds received as a result of your participation in the Plan to your country through a designated bank or broker and/or within a certain time after receipt. You further acknowledge that it is your responsibility to be compliant with such regulations, and that you should consult your personal legal advisor for any details.

17. Waiver. You acknowledge that a waiver by the Company of breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by you or any other participant.

18. Amendments. The Committee at any time, and from time to time, may amend the terms of the Award; provided, however, that the rights under any Award shall not be materially impaired by any such amendment unless (a) the Company requests your consent and (b) you consent in writing.

19. Language. If you have received this Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

20. Severability. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.

21. Acknowledgements. By indicating acceptance of the Award through the Company’s online acceptance procedure, you acknowledge that: (a) you have received, and understand and agree to the terms of, this Agreement and the Plan (including any exhibits to each document), (b) you accept the Award on the terms and conditions set forth in this Agreement and the Plan (including any exhibits to each document), and (c) this Agreement and the Plan (including any exhibits to each document) set forth the entire understanding between you and the Company regarding the rights to acquire the Shares subject to this Award and supersede all prior oral and written agreements with respect thereto.

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EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Stephen J. Luczo, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Seagate Technology plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 26, 2017	/s/ STEPHEN J. LUCZO
	Name:	Stephen J. Luczo
	Title:	Chief Executive Officer, Director and Chairman of the Board of Directors

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, David H. Morton, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of Seagate Technology plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 26, 2017	/s/ DAVID H. MORTON, JR.
	Name:	David H. Morton, Jr.
	Title:	Executive Vice President, Finance and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

This certification is not to be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and does not constitute a part of the Quarterly Report of Seagate Technology plc (the “Company”) on Form 10-Q for the fiscal quarter ended December 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”).

In connection with the Report, we, Stephen J. Luczo, Chief Executive Officer of the Company, and David H. Morton, Jr., Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: January 26, 2017	/s/ STEPHEN J. LUCZO
	Stephen J. Luczo
	Chief Executive Officer, Director and Chairman of the Board of Directors
Date: January 26, 2017	/s/ DAVID H. MORTON, JR.
	David H. Morton, Jr.
	Executive Vice President, Finance and Chief Financial Officer

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Document and Entity Information - shares	6 Months Ended
	Dec. 30, 2016	Jan. 23, 2017
Document And Entity Information
Entity Registrant Name	Seagate Technology plc
Entity Central Index Key	0001137789
Document Type	10-Q
Document Period End Date	Dec. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		295,176,874
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016
Current assets:
Cash and cash equivalents	$ 1,716	$ 1,125
Short-term investments	0	6
Accounts receivable, net	1,211	1,318
Inventories	1,008	868
Other current assets	205	216
Total current assets	4,140	3,533
Property, equipment and leasehold improvements, net	2,012	2,160
Goodwill	1,237	1,237
Other intangible assets, net	364	448
Deferred income taxes	614	616
Other assets, net	194	219
Total Assets	8,561	8,213
Current liabilities:
Accounts payable	1,631	1,517
Accrued employee compensation	254	184
Accrued warranty	114	104
Accrued expenses	682	444
Total current liabilities	2,681	2,249
Long-term accrued warranty	108	102
Long-term accrued income taxes	13	14
Other non-current liabilities	143	164
Long-term debt	4,093	4,091
Total Liabilities	7,038	6,620
Shareholders' Equity:
Ordinary shares and additional paid-in capital	6,049	5,929
Accumulated other comprehensive loss	(33)	(25)
Accumulated deficit	(4,493)	(4,311)
Total Equity	1,523	1,593
Total Liabilities and Equity	$ 8,561	$ 8,213

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 01, 2016
Income Statement [Abstract]
Revenue	$ 2,894	$ 2,986	$ 5,691	$ 5,911
Cost of revenue	2,003	2,245	3,999	4,482
Product development	305	304	620	632
Marketing and administrative	155	160	308	341
Amortization of intangibles	28	31	57	65
Restructuring and other, net	33	17	115	76
Total operating expenses	2,524	2,757	5,099	5,596
Income from operations	370	229	592	315
Interest income	1	1	2	2
Interest expense	(50)	(48)	(100)	(95)
Other, net	(11)	(2)	(11)	(11)
Other expense, net	(60)	(49)	(109)	(104)
Income before income taxes	310	180	483	211
Provision for income taxes	13	15	19	13
Net income	$ 297	$ 165	$ 464	$ 198
Net income per share:
Basic (in dollars per share)	$ 1.00	$ 0.55	$ 1.56	$ 0.66
Diluted (in dollars per share)	$ 1.00	$ 0.55	$ 1.55	$ 0.65
Number of shares used in per share calculations:
Basic (in shares)	296	299	297	301
Diluted (in shares)	298	301	299	304
Cash dividends declared per ordinary share (in dollars per share)	$ 0.63	$ 0.63	$ 1.26	$ 1.17

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 01, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 297	$ 165	$ 464	$ 198
Cash flow hedges
Change in net unrealized (loss) gain on cash flow hedges	(2)	0	(3)	(2)
Less: reclassification for amounts included in net income	0	1	1	2
Net change	(2)	1	(2)	0
Marketable securities
Change in net unrealized gain (loss) on marketable securities	0	0	0	0
Less: reclassification for amounts included in net income	0	0	0	0
Net change	0	0	0	0
Post-retirement plans
Change in unrealized gain (loss) on post-retirement plans	0	0	0	1
Less: reclassification for amounts included in net income	0	0	0	0
Net change	0	0	0	1
Foreign currency translation adjustments
Foreign currency translation adjustments	(7)	(3)	(6)	(3)
Total other comprehensive income (loss), net of tax	(9)	(2)	(8)	(2)
Comprehensive income	$ 288	$ 163	$ 456	$ 196

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016
OPERATING ACTIVITIES
Net income	$ 464	$ 198
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	391	417
Share-based compensation	73	65
Impairment of long-lived assets	9	0
Deferred income taxes	3	0
Other non-cash operating activities, net	18	11
Changes in operating assets and liabilities:
Accounts receivable, net	110	384
Inventories	(140)	(32)
Accounts payable	170	257
Accrued employee compensation	70	(87)
Accrued expenses, income taxes and warranty	69	(5)
Other assets and liabilities	10	(2)
Net cash provided by operating activities	1,247	1,206
INVESTING ACTIVITIES
Acquisition of property, equipment and leasehold improvements	(235)	(346)
Proceeds from the sale of property and equipment	(1)
Maturities of short-term investments	6	0
Cash used in acquisition of business, net of cash acquired	0	(634)
Other investing activities, net	(4)	0
Net cash used in investing activities	(234)	(980)
FINANCING ACTIVITIES
Redemption and repurchase of debt	0	(15)
Taxes paid related to net share settlement of equity awards	(24)	(54)
Repurchases of ordinary shares	(248)	(1,061)
Dividends to shareholders	(188)	(351)
Proceeds from issuance of ordinary shares under employee stock plans	47	41
Other financing activities, net	0	(4)
Net cash used in financing activities	(413)	(1,444)
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash	(12)	(3)
Increase (decrease) in cash, cash equivalents, and restricted cash	588	(1,221)
Cash, cash equivalents, and restricted cash at the beginning of the period	1,132	2,486
Cash, cash equivalents, and restricted cash at the end of the period	$ 1,720	$ 1,265

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CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions	Total	Parent [Member]	Ordinary Shares [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]
Beginning balance at Jul. 03, 2015					$ (30)
Increase (Decrease) in Stockholders' Equity
Net income	$ 198
Other comprehensive loss	(2)				(2)
Ending balance at Jan. 01, 2016					(32)
Beginning balance (in shares) at Jul. 01, 2016			299
Beginning balance at Jul. 01, 2016	1,593	$ 1,593	$ 0	$ 5,929	(25)	$ (4,311)
Increase (Decrease) in Stockholders' Equity
Net income	464	464				464
Other comprehensive loss	$ (8)	(8)			(8)
Issuance of ordinary shares under employee stock plans (in shares)			4
Issuance of ordinary shares under employee stock plans		47		47
Repurchases of ordinary shares (in shares)	(8)		(7)
Repurchases of ordinary shares	$ (272)	(248)				(248)
Tax withholding related to vesting of restricted stock units (in shares)	(1)		(1)
Tax withholding related to vesting of restricted stock units	$ (24)	(24)				(24)
Dividends to shareholders		(374)				(374)
Share-based compensation		73		73
Ending balance (in shares) at Dec. 30, 2016			295
Ending balance at Dec. 30, 2016	$ 1,523	$ 1,523	$ 0	$ 6,049	$ (33)	$ (4,493)

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Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Dec. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Summary of Significant Accounting Policies

Organization

Seagate Technology plc (the "Company"or "Seagate") is a leading provider of electronic data storage technology and solutions. Its principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, it produces a broad range of electronic data storage products including solid state hybrid drives ("SSHD"), solid state drives ("SSD"), PCIe cards and SATA controllers. Its storage technology portfolio also includes storage subsystems, and high performance computing ("HPC") solutions.

Hard disk drives are devices that store digitally encoded data on rapidly rotating disks with magnetic surfaces. Disk drives continue to be the primary medium of mass data storage due to their performance attributes, high quality and cost effectiveness. Complementing existing data center storage architecture, solid-state storage devices use integrated circuit assemblies as memory to store data, and most SSDs use NAND-based flash memory. In addition to HDDs and SSDs, SSHDs combine the features of SSDs and HDDs in the same unit, containing a large hard disk drive and an SSD cache to improve performance of frequently accessed data.

The Company's products are designed for mission critical and nearline applications in enterprise servers and storage systems; client compute applications, where its products are designed primarily for desktop and mobile computing; and client non-compute applications, where its products are designed for a wide variety of end user devices such as digital video recorders ("DVRs"), personal data backup systems, portable external storage systems, digital media systems and surveillance systems.

The Company's Cloud Systems and Solutions product portfolio builds on the Seagate legacy to extend innovation from the device into the information infrastructure, onsite and in the cloud. This product portfolio includes HPC storage solutions, modular original equipment manufacturers ("OEM") storage systems and scale-out storage systems.

Basis of Presentation and Consolidation

The 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. generally accepted accounting principles 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 condensed consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the condensed consolidated financial position, results of operations, comprehensive income, cash flows and shareholders’ equity for the periods presented. Such adjustments are of a normal and recurring nature. Certain prior period amounts reported in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation. 

The Company’s Consolidated Financial Statements for the fiscal year ended July 1, 2016, are included in its Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (“SEC”) on August 5, 2016. The Company believes that the disclosures included in the unaudited condensed consolidated financial statements, when read in conjunction with its Consolidated Financial Statements as of July 1, 2016, and the notes thereto, are adequate to make the information presented not misleading.

The results of operations for the three and six months endedDecember 30, 2016, are not necessarily indicative of the results of operations to be expected for any subsequent interim period in the Company’s fiscal year ending June 30, 2017. The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Both the three and six months endedDecember 30, 2016 and the three and six months endedJanuary 1, 2016 consisted of 13 weeks and 26 weeks, respectively. Fiscal year 2017 will be comprised of 52 weeks and will end on June 30, 2017. The fiscal quarters ended December 30, 2016, September 30, 2016, and January 1, 2016, are also referred to herein as the “December 2016 quarter”, the “September 2016 quarter”, and the “December 2015 quarter”, respectively.

Summary of Significant Accounting Policies

There have been no significant changes in the Company's significant accounting policies. Please refer to Note 1 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 July 1, 2016, as filed with the SEC on August 5, 2016 for a discussion of the Company’s other significant accounting policies.

Recently Issued Accounting Pronouncements

In May 2014, August 2015, April 2016, May 2016 and December 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09 (ASC Topic 606), Revenue from Contracts with Customers, ASU 2015-14 (ASC Topic 606) Revenue from Contracts with Customers, Deferral of the Effective Date, ASU 2016-10 (ASC Topic 606) Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing, ASU 2016-12 (ASC Topic 606) Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20 (ASC Topic 606) Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,respectively.ASC Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted for annual periods beginning after December 15, 2016, which is first quarter of fiscal 2018 for the Company. This standard may be applied retrospectively to all prior periods presented, or retrospectively with a cumulative adjustment to retained earnings in the year of adoption ("modified retrospective transition approach"). The Company is in the process of assessing the impact, if any, on its condensed consolidated financial statements and plans to adopt the modified retrospective transition approach.

In July 2015, the FASB issued ASU 2015-11 (ASC Topic 330), Inventory: Simplifying the Measurement of Inventory. The amendments in this ASU require inventory measurement at the lower of cost and net realizable value. The Company is required to adopt the guidance in the first quarter of fiscal 2018. Early adoption is permitted by all entities as of the beginning of an interim or annual reporting period. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01 (ASC Subtopic 825-10), Financial Instruments - Overall Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU require entities to measure all investments in equity securities at fair value with changes recognized through net income. This requirement does not apply to investments that qualify for the equity method of accounting, to those that result in consolidation of the investee, or for which the entity meets a practicability exception to fair value measurement. Additionally, the amendments eliminate certain disclosure requirements related to financial instruments measured at amortized cost and add disclosures related to the measurement categories of financial assets and financial liabilities.The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted for only certain portions of the ASU. The Company is in the process of assessing the impact, if any, on its condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02 (ASC Topic 842), Leases. The ASU amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The Company is required to adopt the guidance in the first quarter of fiscal 2020. Early adoption is permitted. The Company is in the process of assessing the impact on its condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09 (ASC Topic 718), Stock Compensation - Improvements to Employee Share-Based Payment Accounting. The amendments in this ASU are intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax consequences, classification on the consolidated statement of cash flows and treatment of forfeitures. The Company is required to adopt the guidance in the first quarter of fiscal 2018. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15 (ASC Topic 230), Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU are intended to clarify how certain cash receipts and cash payment are presented and classified in the statement of cash flows. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16 (ASC Topic 740), Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory. The amendments in this ASU require the recognition of the income tax consequences for intra-entity transfers of assets other than inventory when the transfer occurs. Under current GAAP, current and deferred income taxes for intra-entity asset transfers are not recognized until the asset has been sold to an outside party. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01 (ASC Topic 805), Business Combination: Clarifying the Definition of a Business. The amendments in this ASU change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

Recently Adopted Accounting Pronouncements

In April 2015 and August 2015, the FASB issued ASU 2015-03 (ASC Subtopic 835-30), Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15 (ASC Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, respectively.The ASUs require that debt issuance costs related to a recognized debt liability, with the exception of those related to line-of-credit arrangements, be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 became effective and was adopted by the Company in the September 2016 quarter on a retrospective basis. The adoption of this guidance resulted in a reduction to Other assets, net and Long-term debt by $39 million, within the Consolidated Balance Sheet as of July 1, 2016. ASU 2015-15 became effective and was adopted by the Company in the September 2016 quarter on a prospective basis with no material impact on the Company’s condensed consolidated financial statements and disclosures.

In September 2015, the FASB issued ASU 2015-16 (ASC Topic 805), Business Combinations Simplifying the Accounting for Measurement-Period Adjustments. The amendments in this update require that an acquirer recognize measurement period adjustments in the period in which the adjustments are determined. The income effects of such measurement period adjustments are to be recorded in the same period’s financial statements but calculated as if the accounting had been completed as of the acquisition date. The impact of measurement period adjustments to earnings that relate to prior period financial statements are to be presented separately on the income statement or disclosed by line item. The amendments in this update are for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015. This ASU became effective and was adopted by the Company in the September 2016 quarter on a prospective basis with no material impact on the Company’s condensed consolidated financial statements and disclosures.

In November 2016, the FASB issued ASU 2016-18 (ASC Topic 230), Statement of Cash Flows: Restricted Cash. The amendments in this update provide guidance on the classification and presentation of changes in restricted cash on the statement of cash flows. The ASU requires amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the total beginning and ending balances for the periods presented on the statement of cash flows. The amendments in this update are for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. The Company elected to adopt this ASU in the December 2016 quarter on a retrospective basis with no material impact on the Company's condensed consolidated financial statements and disclosures. The Company classifies restricted cash within Other current assets in the condensed consolidated balance sheets.

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Balance Sheet Information

6 Months Ended

Dec. 30, 2016

Disclosure Text Block Supplement [Abstract]

Balance Sheet Information

Balance Sheet Information

Investments

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of December 30, 2016: 

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale securities:
Money market funds	$	816	$	—	$	816
Certificates of deposit	3		—		3
Total	$	819	$	—	$	819
Included in Cash and cash equivalents					$	815
Included in Other current assets					$	4
Total					$	819

As of December 30, 2016, the Company’s Other current assets included $4 million in restricted cash and investments held as collateral at banks for various performance obligations.

As of December 30, 2016, the Company had no material available-for-sale securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined that no available-for-sale securities were other-than-temporarily impaired as of December 30, 2016.

The fair value and amortized cost of the Company’s investments classified as available-for-sale at December 30, 2016, by remaining contractual maturity were as follows:

(Dollars in millions)	Amortized Cost		Fair Value
Due in less than 1 year	$	819	$	819
Due in 1 to 5 years	—		—
Thereafter	—		—
Total	$	819	$	819

In the current quarter, the company reclassified demand deposits from certificates of deposit and money market funds to cash. The corresponding prior period amounts were reclassified to conform to the current period’s presentation. This reclassification did not result in any change to the cash and cash equivalents balance as reported in the Condensed Consolidated Balance Sheets and Statements of Cash Flows for all periods presented.

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of July 1, 2016: 

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale securities:
Money market funds	$	232	$	—	$	232
Certificates of deposit	5		—		5
Corporate bonds	6		—		6
Total	$	243	$	—	$	243
Included in Cash and cash equivalents					$	230
Included in Short-term investments					6
Included in Other current assets					7
Total					$	243

As of July 1, 2016, the Company’s Other current assets included $7 million in restricted cash and investments held as collateral at banks for various performance obligations.

As of July 1, 2016, the Company had no material available-for-sale securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale securities were other-than-temporarily impaired as of July 1, 2016.

Cash, Cash Equivalents, and Restricted Cash

The following table provides a summary of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that reconciles to the corresponding amount in the Condensed Consolidated Statements of Cash Flows:

(Dollars in millions)	December 30, 2016		July 1, 2016		January 1, 2016		July 3, 2015
Cash and cash equivalents	$	1,716	$	1,125	$	1,258	$	2,479
Restricted cash included in Other current assets	4		7		7		7
Total cash, cash equivalents, and restricted cash shown in the Statements of Cash Flows	$	1,720	$	1,132	$	1,265	$	2,486

Inventories

The following table provides details of the inventory balance sheet item: 

(Dollars in millions)	December 30, 2016		July 1, 2016
Raw materials and components	$	312	$	307
Work-in-process	362		297
Finished goods	334		264
	$	1,008	$	868

Property, Equipment and Leasehold Improvements, net

The components of property, equipment and leasehold improvements, net, were as follows:

(Dollars in millions)	December 30, 2016			July 1, 2016
Property, equipment and leasehold improvements	$	9,799		$	9,884
Accumulated depreciation and amortization	(7,787		)	(7,724		)
	$	2,012		$	2,160

Accrued expenses

The following table provides details of the accrued expenses balance sheet item: 

(Dollars in millions)	December 30, 2016		July 1, 2016
Dividends payable	$	186	$	—
Other accrued expenses	496		444
Total	$	682	$	444

Accumulated Other Comprehensive Income (Loss) (“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 Marketable Securities (a)		Unrealized Gains (Losses) on Post-Retirement Plans			Foreign Currency Translation Adjustments			Total
Balance at July 1, 2016	$	(1	)	$	—	$	(7	)	$	(17	)	$	(25	)
Other comprehensive income (loss) before reclassifications	(3		)	—		—			(6		)	(9		)
Amounts reclassified from AOCI	1			—		—			—			1
Other comprehensive income (loss)	(2		)	—		—			(6		)	(8		)
Balance at December 30, 2016	$	(3	)	$	—	$	(7	)	$	(23	)	$	(33	)
Balance at July 3, 2015	$	1		$	—	$	(15	)	$	(16	)	$	(30	)
Other comprehensive income (loss) before reclassifications	(2		)	—		1			(3		)	(4		)
Amounts reclassified from AOCI	2			—		—			—			2
Other comprehensive income (loss)	—			—		1			(3		)	(2		)
Balance at January 1, 2016	$	1		$	—	$	(14	)	$	(19	)	$	(32	)

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(a)The cost of a security sold or the amount reclassified out of AOCI into earnings was determined using specific identification.

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Debt

6 Months Ended

Dec. 30, 2016

Debt Disclosure [Abstract]

Debt

Debt

Short-Term Borrowings

The credit agreement entered into by the Company and its subsidiary Seagate HDD Cayman on January 18, 2011 and subsequently amended (the "Revolving Credit Facility") provides the Company with a $700 million senior secured revolving credit facility. The term of the Revolving Credit Facility is through January 15, 2020, provided that if the Company does not have Investment Grade Ratings (as defined in the Revolving Credit Facility) on August 15, 2018, then the maturity date will be August 16, 2018 unless certain extension conditions have been satisfied. The loans made under the Revolving Credit Facility will bear interest at a rate of LIBOR plus a variable margin that will be determined based on the corporate credit rating of the Company. The Company and certain of its material subsidiaries fully and unconditionally guarantee the Revolving Credit Facility. The Revolving Credit Facility is available for cash borrowings, subject to compliance with certain covenants and other customary conditions to borrowing, and for the issuance of letters of credit up to a sub-limit of $75 million.

The Revolving Credit Facility, as amended, includes three financial covenants: (1) minimum cash, cash equivalents and marketable securities; (2) a fixed charge coverage ratio; and (3) a net leverage ratio. On April 27, 2016, the Revolving Credit Agreement was amended in order to increase the allowable net leverage ratio to allow for higher net leverage levels. The Company was in compliance with the modified covenants as of December 30, 2016 and expects to be in compliance for the next 12 months.

As of December 30, 2016, no borrowings had been drawn or letters of credit utilized under the Revolving Credit Facility.

Long-Term Debt

$800 million Aggregate Principal Amount of 3.75% Senior Notes due November 2018 (the “2018 Notes”). The interest on the 2018 Notes is payable semi-annually on May 15 and November 15 of each year. The issuer under the 2018 Notes is Seagate HDD Cayman, and the obligations under the 2018 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$600 million Aggregate Principal Amount of 7.00% Senior Notes due November 2021 (the “2021 Notes”). The interest on the 2021 Notes is payable semi-annually on January 1 and July 1 of each year. The issuer under the 2021 Notes is Seagate HDD Cayman, and the obligations under the 2021 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$1 billion Aggregate Principal Amount of 4.75% Senior Notes due June 2023 (the “2023 Notes”). The interest on the 2023 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2023 Notes is Seagate HDD Cayman, and the obligations under the 2023 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$1 billion Aggregate Principal Amount of 4.75% Senior Notes due January 2025 (the “2025 Notes”). The interest on the 2025 Notes is payable semi-annually on January 1 and July 1 of each year. The issuer under the 2025 Notes is Seagate HDD Cayman, and the obligations under the 2025 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$700 million Aggregate Principal Amount of 4.875% Senior Notes due June 2027 (the “2027 Notes”). The interest on the Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2027 Notes is Seagate HDD Cayman, and the obligations under the 2027 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$500 million Aggregate Principal Amount of 5.75% Senior Notes due December 2034 (the “2034 Notes”). The interest on the 2034 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2034 Notes is Seagate HDD Cayman, and the obligations under the 2034 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

At December 30, 2016, future principal payments on long-term debt were as follows (in millions):

Fiscal Year	Amount
Remainder of 2017	$	—
2018	—
2019	800
2020	—
2021	—
Thereafter	3,333
Total	$	4,133

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Income Taxes

6 Months Ended

Dec. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recorded an income tax provision of $13 million and $19 million in the three and six months endedDecember 30, 2016. The income tax provision for the three and six months ended December 30, 2016 included less than $1 million of net discrete tax expense and approximately $4 million of net discrete tax benefits, respectively. These discrete items are primarily associated with the release of tax reserves due to the expiration of certain statutes of limitation and prior year tax adjustments.

The Company's income tax provision recorded for the three and six months endedDecember 30, 2016 differed from the provision for income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax holidays or tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain deferred tax assets.

During the six months ended December 30, 2016, the Company’s unrecognized tax benefits excluding interest and penalties decreased by approximately $4 million to $66 million. The unrecognized tax benefits that, if recognized, would impact the effective tax rate were $66 million at December 30, 2016, subject to certain future valuation allowance reversals. During the 12 months beginning December 31, 2016, the Company expects that its unrecognized tax benefits could be reduced by approximately $12 million, primarily as a result of the expiration of certain statutes of limitation.

The Company recorded an income tax provision of $15 million and $13 million in the three and six months endedJanuary 1, 2016. The income tax provision for the six months ended January 1, 2016 included approximately $3 million of net discrete tax benefits, primarily for the release of tax reserves due to the expiration of certain statutes of limitation.

The Company’s income tax provision recorded for the three and six months endedJanuary 1, 2016 differed from the provision from income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax holidays or tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain U.S. deferred tax assets.

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Acquisitions

6 Months Ended

Dec. 30, 2016

Business Combinations [Abstract]

Acquisitions

Acquisitions

Dot Hill Systems Corp.

On October 6, 2015, the Company acquired all of the outstanding shares of Dot Hill Systems Corp. (“Dot Hill”), a supplier of software and hardware storage systems. The Company paid $9.75 per share, or $674 million, in cash for the acquisition. The acquisition of Dot Hill further expands the Company's OEM-focused cloud storage systems business and advances the Company's strategic efforts.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:

(Dollars in millions)	Amount
Cash and cash equivalents	$	40
Accounts receivable, net	48
Inventories	21
Other current and non-current assets	7
Property, plant and equipment	10
Intangible assets	252
Goodwill	364
Total assets	742
Accounts payable, accrued expenses and other	(68		)
Total liabilities	(68		)
Total	$	674

The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized:

(Dollars in millions)	Fair Value		Weighted- Average Amortization Period
Existing technology	$	164	5.0 years
Customer relationships	71		7.0 years
Trade names	3		5.0 years
Total amortizable intangible assets acquired	238		5.5 years
In-process research and development	14
Total acquired identifiable intangible assets	$	252

The recognized goodwill, which is not deductible for income tax purposes, is primarily attributable to cost synergies expected to arise after the acquisition and the benefits the Company expects to derive from enhanced market opportunities.

LSI's Flash Business

On September 2, 2014, the Company completed the acquisition of certain assets and liabilities of LSI Corporation's ("LSI") Accelerated Solutions Division and Flash Components Division (collectively, the "Flash Business") from Avago Technologies Limited for $450 million in cash. The transaction is intended to strengthen Seagate's strategy to deliver a full suite of storage solutions, providing Seagate with established enterprise PCIe flash and SSD controller capabilities to deliver solutions for the growing flash storage market.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:

(Dollars in millions)	Amount
Inventories	$	37
Property, plant and equipment	22
Intangible assets	141
Other assets	6
Goodwill	337
Total assets	543
Liabilities	(93		)
Total liabilities	(93		)
Total	$	450

The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the weighted-average period over which intangible assets within each category will be amortized:

(Dollars in millions)	Fair Value		Weighted- Average Amortization Period
Existing technology	$	84	3.5 years
Customer relationships	40		3.8 years
Trade names	17		4.5 years
Total acquired identifiable intangible assets	$	141	3.7 years

The goodwill recognized is primarily attributable to the benefits the Company expects to derive from enhanced market opportunities, and is not deductible for income tax purposes.

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Goodwill and Other Intangible Assets

6 Months Ended

Dec. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the six months ended December 30, 2016, are as follows:

(Dollars in millions)	Amount
Balance at July 1, 2016	$	1,237
Goodwill acquired	—
Foreign currency translation effect	—
Balance at December 30, 2016	$	1,237

Other Intangible Assets

Other intangible assets consist primarily of existing technology, customer relationships, in-process research and development ("IPR&D") and trade names acquired in business combinations. With the exception of IPR&D, acquired intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets. Amortization is charged to Operating expenses in the Condensed Consolidated Statements of Operations. IPR&D has been determined to have an indefinite useful life and is not amortized, but instead tested for impairment annually or more frequently if events or changes in circumstance indicate that the asset might be impaired. If the carrying amount of IPR&D exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. There were no impairment charges recognized for IPR&D. Upon completion of the IPR&D, the related assets will be accounted for as a finite-lived intangible asset, and will be amortized over its useful life.

The carrying value of other intangible assets subject to amortization as of December 30, 2016, is set forth in the following table: 

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	297	$	(111	)	$	186	3.8 years
Customer relationships	510		(373		)	137		3.1 years
Trade name	29		(18		)	11		2.3 years
Other intangible assets	29		(13		)	16		3.0 years
Total amortizable other intangible assets	$	865	$	(515	)	$	350	3.4 years

The carrying value of IPR&D not subject to amortization was $14 million as of December 30, 2016.

The carrying value of other intangible assets subject to amortization as of July 1, 2016 is set forth in the following table:

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	297	$	(79	)	$	218	4.1 years
Customer relationships	510		(328		)	182		3.2 years
Trade name	29		(14		)	15		2.6 years
Other intangible assets	29		(10		)	19		3.2 years
Total amortizable other intangible assets	$	865	$	(431	)	$	434	3.6 years

The carrying value of IPR&D not subject to amortization was $14 million on July 1, 2016.

For the three and six months endedDecember 30, 2016, the amortization expense of other intangible assets was $42 million and $84 million, respectively. For the three and six months endedJanuary 1, 2016, the amortization expense of other intangible assets was $46 million and $87 million, respectively. As of December 30, 2016, expected amortization expense for other intangible assets for each of the next five fiscal years and thereafter is as follows:

(Dollars in millions)	Amount
Remainder of 2017	$	82
2018	106
2019	68
2020	50
2021	23
Thereafter	21
Total	$	350

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Restructuring and Exit Costs

6 Months Ended

Dec. 30, 2016

Restructuring and Related Activities [Abstract]

Restructuring and Exit Costs

Restructuring and Exit Costs

For the three and six months endedDecember 30, 2016, the Company recorded restructuring charges of approximately $33 million and $115 million, respectively, comprised primarily of charges related to workforce reduction costs and facility exit costs associated with the restructuring of its workforce during the fiscal year. The Company's significant restructuring plans are described below. All restructuring charges are reported in Restructuring and other, net on the Condensed Consolidated Statements of Operations.

July 2016 Plan - On July 11, 2016, the Company committed to a restructuring plan (the “July 2016 Plan”) for continued consolidation of its global footprint across Asia, EMEA and the Americas. The July 2016 Plan included reducing worldwide headcount by approximately 6,500 employees. The July 2016 Plan, is expected to be largely completed by the end of fiscal year 2017. For the three months endedDecember 30, 2016, the Company recorded total restructuring charges of approximately $9 million related to the July 2016 Plan, comprised of approximately $3 million of workforce reduction costs, $3 million of facility exit costs and $3 million of foreign currency remeasurement charges. For the six months endedDecember 30, 2016, the Company recorded total restructuring charges of approximately $82 million, comprised of approximately $75 million for workforce reduction costs, $4 million for facility exit costs, and $3 million of foreign currency remeasurement charges. For the three months endedDecember 30, 2016, the Company made cash payments of $15 million, comprised primarily of $12 million for workforce reduction costs and $3 million for facility exit costs related to the July 2016 Plan. For the six months endedDecember 30, 2016, the Company made cash payments of $19 million comprised primarily of $15 million for workforce reduction costs and $4 million for facility exit costs related to the July 2016 Plan.

June 2016 Plan - On June 27, 2016, the Company committed to a restructuring plan (the “June 2016 Plan”) as part of the Company's efforts to reduce its cost structure to align with the then current macroeconomic conditions. The June 2016 Plan included reducing worldwide headcount by approximately 1,600 employees. The June 2016 Plan was largely completed by the fiscal quarter ended September 30, 2016. For the three and six months endedDecember 30, 2016, the Company recorded total restructuring charges of approximately $1 million and $1 million, respectively, and made cash payments of $3 million and $38 million, respectively, comprised primarily of workforce reduction costs related to the June 2016 Plan.

February 2016 Plan - On February 15, 2016, the Company committed to a restructuring plan (the “February 2016 Plan”) intended to align its manufacturing footprint with the then current macroeconomic conditions. The February 2016 Plan included reducing worldwide headcount by approximately 2,000 employees. The February 2016 Plan was largely completed by the fiscal quarter ended April 1, 2016. For the three months endedDecember 30, 2016, the Company did not record any material restructuring charges nor made any material cash payments related to the February 2016 Plan. For the six months endedDecember 30, 2016, the Company recorded total restructuring charges and made cash payments of $1 million comprised of facility exit costs related to the February 2016 Plan,

September 2015 Plan - On September 4, 2015, the Company committed to a restructuring plan (the “September 2015 Plan”) intended to realign its cost structure with the then current macroeconomic business environment. The September 2015 Plan included reducing worldwide headcount by approximately 1,000 employees. The September 2015 Plan was largely completed by the fiscal quarter ended January 1, 2016. For the three months endedDecember 30, 2016, the Company did not record any material restructuring charges. For the six months endedDecember 30, 2016, the Company recorded total restructuring charges of approximately $2 million. For the three and six months endedDecember 30, 2016, the Company made cash payments of approximately $1 million and $2 million, respectively, comprised primarily of facility exit costs related to the September 2015 Plan.

Other Restructuring and Exit Costs - For the three months endedDecember 30, 2016, the Company recorded total restructuring charges of approximately $23 million, comprised of approximately $20 million of workforce reduction costs and $3 million of facility exit costs. For the six months endedDecember 30, 2016, the Company recorded total restructuring charges of approximately $29 million, comprised of approximately $23 million of workforce reduction costs and $6 million of facility exit costs. For the three months endedDecember 30, 2016, the Company made cash payments of $11 million, comprised primarily of $4 million for workforce reduction costs and $7 million for facility exit costs. For the six months endedDecember 30, 2016, the Company made cash payments of $12 million, comprised primarily of $5 million for workforce reduction costs and $7 million for facility exit costs.

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Derivative Financial Instruments

6 Months Ended

Dec. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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. The Company enters into foreign currency forward exchange contracts in order to manage the foreign currency exchange rate risk on forecasted expenses denominated in foreign currencies. 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 in the Condensed Consolidated Balance Sheets at fair value. The changes in the fair value of the effective portions of designated cash flow hedges are recorded in Accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments and the ineffective portions of cash flow hedges are adjusted to fair value through earnings. The amounts of net unrealized loss on cash flow hedges were $3 million and $2 million as of December 30, 2016 and July 1, 2016, respectively.

The Company dedesignates its cash flow hedges when the forecasted hedged transactions are realized 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 Accumulated other comprehensive loss are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings. The Company did not recognize any net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three months endedDecember 30, 2016. As of December 30, 2016, the Company’s existing foreign currency forward exchange contracts mature within 12 months. The deferred amount currently recorded in Accumulated other comprehensive loss expected to be recognized into earnings over the next 12 months is immaterial.

The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of December 30, 2016 and July 1, 2016:

	As of December 30, 2016
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
Singapore Dollars	$	45	$	48
Thai Bhat	43		23
British Pound Sterling	37		—

	As of July 1, 2016
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
British Pound Sterling	$	47	$	10

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 liabilities. The Company pays a floating rate, based on LIBOR plus an interest rate spread, on the notional amount of the TRS. The TRS is designed to substantially offset changes in the SDCP liability due to changes in the value of the investment options made by employees. As of December 30, 2016, the notional investments underlying the TRS amounted to $100 million.The original contract term of the TRS was through January 2016, and was settled on a monthly basis, therefore limiting counterparty performance risk. The Company renewed the contract term through January 2018 under materially the same terms. 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 liabilities.

The following tables show the Company’s derivative instruments measured at fair value as reflected in the Condensed Consolidated Balance Sheet as of December 30, 2016 and July 1, 2016:

	As of December 30, 2016
	Asset Derivatives			Liability Derivatives
(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	$	—	Accrued expenses	$	(4	)
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	—		Accrued expenses	(1		)
Total return swap	Other current assets	—		Accrued expenses	—
Total derivatives		$	—		$	(5	)

	As of July 1, 2016
	Asset Derivatives			Liability Derivatives
(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	$	—	Accrued expenses	$	(2	)
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	—		Accrued expenses	(1		)
Total return swap	Other current assets	3		Accrued expenses	—
Total derivatives		$	3		$	(3	)

The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statement of Comprehensive Income and the Condensed Consolidated Statement of Operations for the three and six months endedDecember 30, 2016:

(Dollars in millions)

Derivatives Designated as Hedging Instruments	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a)
	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	$	(2	)	$	(3	)	Cost of revenue	$	—	$	(1	)	Cost of revenue	$	—	$	—

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		For the Three Months			For the Six Months
Foreign currency forward exchange contracts	Other, net	$	(2	)	$	(3	)
Total return swap	Operating expenses	1			4

___________________________________________

(a) The amount of gain or (loss) recognized in income represents $0 million related to the ineffective portion of the hedging relationships and $0 million related to the amount excluded from the assessment of hedge effectiveness for the three and six months endedDecember 30, 2016, respectively.

The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statement of Comprehensive Income and the Condensed Consolidated Statement of Operations for the three and six months endedJanuary 1, 2016:

(Dollars in millions)

Derivatives Designated as Hedging Instruments	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)					Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)						Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a)
	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	$	—	$	(2	)	Cost of revenue	$	(1	)	$	(2	)	Cost of revenue	$	—	$	—

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivatives	Amount of Gain or (Loss) Recognized in Income on Derivatives
		For the Three Months		For the Six Months
Foreign currency forward exchange contracts	Other, net	$	1	$	(4	)
Total return swap	Operating expenses	1		(4		)

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(a) The amount of gain or (loss) recognized in income represents $0 million related to the ineffective portion of the hedging relationships and $0 million related to the amount excluded from the assessment of hedge effectiveness for the three and six months endedJanuary 1, 2016, respectively.

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Fair Value

6 Months Ended

Dec. 30, 2016

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 reflects 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:

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 30, 2016:

	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
Assets:
Money market funds	$	815	$	—		$	—	$	815
Total cash equivalents and short-term investments	815		—			—		815
Restricted cash and investments:
Money market funds	1		—			—		1
Certificates of deposit	—		3			—		3
Total assets	$	816	$	3		$	—	$	819
Liabilities:
Derivative liabilities	$	—	$	(5	)	$	—	$	(5	)
Total liabilities	$	—	$	(5	)	$	—	$	(5	)

	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
Assets:
Cash and cash equivalents	$	815	$	—		$	—	$	815
Other current assets	1		3			—		4
Total assets	$	816	$	3		$	—	$	819
Liabilities:
Accrued expenses	$	—	$	(5	)	$	—	$	(5	)
Total liabilities	$	—	$	(5	)	$	—	$	(5	)

In the current quarter, the company reclassified demand deposits from certificates of deposit and money market funds to cash. The corresponding prior period amounts were reclassified to conform to the current period’s presentation. This reclassification did not result in any change to the cash and cash equivalents balance as reported in the Condensed Consolidated Balance Sheets and Statements of Cash Flows for all periods presented.

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 July 1, 2016:

	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
Assets:
Money market funds	$	230	$	—		$	—	$	230
Corporate bonds	—		6			—		6
Total cash equivalents and short-term investments	230		6			—		236
Restricted cash and investments:
Money market funds	2		—			—		2
Certificates of deposit	—		5			—		5
Derivative assets	—		3			—		3
Total assets	$	232	$	14		$	—	$	246
Liabilities:
Derivative liabilities	$	—	$	(3	)	$	—	$	(3	)
Total liabilities	$	—	$	(3	)	$	—	$	(3	)

	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
Assets:
Cash and cash equivalents	$	230	$	—		$	—	$	230
Short-term investments	—		6			—		6
Other current assets	2		8			—		10
Total assets	$	232	$	14		$	—	$	246
Liabilities:
Accrued expenses	$	—	$	(3	)	$	—	$	(3	)
Total liabilities	$	—	$	(3	)	$	—	$	(3	)

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 and certificates of deposits. 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 values of all of its cash equivalents and short-term investments. For the cash equivalents and short-term investments 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 30, 2016, 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 and the TRS. The Company recognizes derivative financial instruments in its 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.

As of December 30, 2016 and July 1, 2016, the Company had no Level 3 assets or liabilities measured at fair value on a recurring basis.

Items Measured at Fair Value on a Non-Recurring Basis

The Company enters into certain strategic investments for the promotion of business and strategic objectives. Strategic investments in equity securities where the Company does not have the ability to exercise significant influence over the investees, included in Other assets, net in the Condensed Consolidated Balance Sheets, are recorded at cost and are periodically analyzed to determine whether or not there are indicators of impairment. The carrying value of the Company’s strategic investments at December 30, 2016 and July 1, 2016 totaled $91 million and $113 million, respectively, and consisted primarily of privately held equity securities without a readily determinable fair value.

In the six months endedDecember 30, 2016 and January 1, 2016, the Company determined that a certain equity investment accounted for under the cost method was other-than-temporarily impaired, and recognized a charge of $25 million and $10 million, respectively, in order to write down the carrying amount of the investment to zero. Since there was no active market for the equity securities of the investee, the Company estimated fair value of the investee by analyzing the underlying cash flows and future prospects of the investee. These amounts were recorded in Other, net in the Condensed Consolidated Statements of Operations.

Other Fair Value Disclosures 

The Company’s debt is carried at amortized cost. The fair value of the Company’s debt is derived using the closing price 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 30, 2016					July 1, 2016
(Dollars in millions)	Carrying Amount			Estimated Fair Value		Carrying Amount			Estimated Fair Value
3.75% Senior Notes due November 2018	$	800		$	822	$	800		$	804
7.00% Senior Notes due November 2021	158			163		158			164
4.75% Senior Notes due June 2023	990			984		990			857
4.75% Senior Notes due January 2025	995			944		995			795
4.875% Senior Notes due June 2027	698			633		698			514
5.75% Senior Notes due December 2034	489			419		489			357
	$	4,130		$	3,965	$	4,130		$	3,491
Less: debt issuance costs	(37		)	—		(39		)	—
Long-term debt, net of debt issuance costs	$	4,093		$	3,965	$	4,091		$	3,491
Less: short-term borrowings and current portion of long-term debt	—			—		—			—
Long-term debt, less current portion	$	4,093		$	3,965	$	4,091		$	3,491

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Equity

6 Months Ended

Dec. 30, 2016

Equity [Abstract]

Equity

Equity

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 295,151,580 shares were outstanding as of December 30, 2016, and 100,000,000 preferred shares, par value $0.00001, of which none were issued or outstanding as of December 30, 2016.

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

On April 22, 2015, the Board of Directors authorized the Company to repurchase an additional $2.5 billion of its outstanding ordinary shares.

All repurchases are effected as redemptions in accordance with the Company's Articles of Association.

As of December 30, 2016, $1.5 billion remained available for repurchase under the existing repurchase authorization limit.

The following table sets forth information with respect to repurchases of the Company’s shares during the six months ended December 30, 2016:

(In millions)	Number of Shares Repurchased	Dollar Value of Shares Repurchased
Repurchases of ordinary shares	7	$	248
Tax withholding related to vesting of equity awards	1	24
Total	8	$	272

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Share-based Compensation

6 Months Ended

Dec. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation

Share-based Compensation

The Company recorded approximately $33 million and $73 million share-based compensation expense during the three and six months endedDecember 30, 2016, respectively. The Company recorded approximately $32 million and $65 million of shared-based compensation expense during the three and six months endedJanuary 1, 2016, respectively.

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Guarantees

6 Months Ended

Dec. 30, 2016

Guarantees [Abstract]

Guarantees

Guarantees

Indemnifications to Officers and Directors

On May 4, 2009, Seagate Technology, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Seagate-Cayman”), then the parent company, entered into a new form of indemnification agreement (the “Revised Indemnification Agreement”) with its officers and directors of Seagate-Cayman and its subsidiaries (each, an “Indemnitee”). The Revised Indemnification Agreement provides indemnification in addition to any of Indemnitee's indemnification rights under Seagate-Cayman's Articles of Association, applicable law or otherwise, and indemnifies an Indemnitee for certain expenses (including attorneys' fees), judgments, fines and settlement amounts actually and reasonably incurred by him or her in any action or proceeding, including any action by or in the right of Seagate-Cayman or any of its subsidiaries, arising out of his or her service as a director, officer, employee or agent of Seagate-Cayman or any of its subsidiaries or of any other entity to which he or she provides services at Seagate-Cayman's request. However, an Indemnitee shall not be indemnified under the Revised Indemnification Agreement for (i) any fraud or dishonesty in the performance of Indemnitee's duty to Seagate-Cayman or the applicable subsidiary of Seagate-Cayman or (ii) Indemnitee's conscious, intentional or willful failure to act honestly, lawfully and in good faith with a view to the best interests of Seagate-Cayman or the applicable subsidiary of Seagate-Cayman. In addition, the Revised Indemnification Agreement provides that Seagate-Cayman will advance expenses incurred by an Indemnitee in connection with enforcement of the Revised Indemnification Agreement or with the investigation, settlement or appeal of any action or proceeding against him or her as to which he or she could be indemnified.

On July 3, 2010, pursuant to a corporate reorganization, the common shareholders of Seagate-Cayman became ordinary shareholders of Seagate Technology plc (the "Company") and Seagate-Cayman became a wholly owned subsidiary of the Company, as described more fully in the Current Report on Form 8-K filed by the Company on July 6, 2010 (the “Redomestication”). On July 27, 2010, in connection with the Redomestication, the Company, as sole shareholder of Seagate-Cayman, approved a form of deed of indemnity (the “Deed of Indemnity”), which provides for the indemnification by Seagate-Cayman of any director, officer, employee or agent of the Company, Seagate-Cayman or any subsidiary of the Company (each, a “Deed Indemnitee”), in addition to any of a Deed Indemnitee's indemnification rights under the Company's Articles of Association, applicable law or otherwise, with a similar scope to the Revised Indemnification Agreement. Seagate-Cayman entered into the Deed of Indemnity with certain Deed Indemnitees effective as of July 3, 2010 and continues to enter into the Deed of Indemnity with additional Deed Indemnitees from time to time.

The nature of these indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay on behalf of its officers and directors. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the accompanying condensed consolidated financial statements with respect to these indemnification obligations.

Intellectual Property Indemnification Obligations

The Company has entered into agreements with customers and suppliers that include limited intellectual property indemnification obligations that are customary in the industry. These guarantees generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party intellectual property claims arising from these transactions. The nature of the intellectual property indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to its customers and suppliers. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the accompanying condensed consolidated financial statements with respect to these indemnification 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 return rates in order to determine its warranty obligation. Changes in the Company’s product warranty liability during the three and six months endedDecember 30, 2016 and January 1, 2016 were as follows:

	For the Three Months Ended						For the Six Months Ended
(Dollars in millions)	December 30, 2016			January 1, 2016			December 30, 2016			January 1, 2016
Balance, beginning of period	$	216		$	225		$	206		$	248
Warranties issued	34			33			65			66
Repairs and replacements	(29		)	(40		)	(59		)	(81		)
Changes in liability for pre-existing warranties, including expirations	1			3			10			(12		)
Warranty liability assumed from business acquisitions	—			2			—			2
Balance, end of period	$	222		$	223		$	222		$	223

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Earnings Per Share

6 Months Ended

Dec. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic 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 shares to be purchased under the ESPP. 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 income per share attributable to the shareholders of Seagate Technology plc:

	For the Three Months Ended				For the Six Months Ended
(In millions, except per share data)	December 30, 2016		January 1, 2016		December 30, 2016		January 1, 2016
Numerator:
Net income	$	297	$	165	$	464	$	198
Number of shares used in per share calculations:
Total shares for purposes of calculating basic net income per share	296		299		297		301
Weighted-average effect of dilutive securities:
Employee equity award plans	2		2		2		3
Total shares for purpose of calculating diluted net income per share	298		301		299		304
Net income per share:
Basic	$	1.00	$	0.55	$	1.56	$	0.66
Diluted	$	1.00	$	0.55	$	1.55	$	0.65

The anti-dilutive shares related to employee equity award plans that were excluded from the computation of diluted net income were 1 million and 2 million for the three and six months endedDecember 30, 2016, respectively, and 2 million and 1 million for the three and six months endedJanuary 1, 2016, respectively.

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Legal, Environmental and Other Contingencies

6 Months Ended

Dec. 30, 2016

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.

Intellectual Property Litigation

Convolve, Inc. ("Convolve") and Massachusetts Institute of Technology ("MIT") v. Seagate Technology LLC, et al. - On July 13, 2000, Convolve and MIT filed suit against Compaq Computer Corporation and Seagate Technology LLC in the U.S. District Court for the Southern District of New York, alleging infringement of U.S. Patent No. 4,916,635 (the "'635 patent") and U.S. Patent No. 5,638,267 (the "'267 patent"), misappropriation of trade secrets, breach of contract, and other claims. On January 16, 2002, Convolve filed an amended complaint, alleging defendants infringe U.S. Patent No. 6,314,473 (the "'473 patent"). The district court ruled in 2010 that the '267 patent was out of the case.

On August 16, 2011, the district court granted in part and denied in part the Company's motion for summary judgment. On July 1, 2013, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court's summary judgment rulings that Seagate did not misappropriate any of the alleged trade secrets and that the asserted claims of the '635 patent are invalid; 2) reversed and vacated the district court's summary judgment of non-infringement with respect to the '473 patent; and 3) remanded the case for further proceedings on the '473 patent. On July 11, 2014, the district court granted the Company's further summary judgment motion regarding the '473 patent. On February 10, 2016, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court’s summary judgment of no direct infringement by Seagate because Seagate’s ATA/SCSI disk drives do not meet the “user interface” limitation of the asserted claims of the ‘473 patent; 2) affirmed the district court’s summary judgment of non-infringement by Compaq’s products as to claims 1, 3, and 5 of the ‘473 patent because Compaq’s F10 BIOS interface does not meet the “commands” limitation of those claims; 3) vacated the district court’s summary judgment of non-infringement by Compaq’s accused products as to claims 7-15 of the ‘473 patent; 4) reversed the district court’s summary judgment of non-infringement based on intervening rights; and 5) remanded the case to the district court for further proceedings on the ‘473 patent. In view of the rulings made by the district court and the Court of Appeals and the uncertainty regarding the amount of damages, if any, that could be awarded Convolve in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter.

Alexander Shukh v. Seagate Technology - On February 12, 2010, Alexander Shukh filed a complaint against the Company in the U.S. District Court for the District of Minnesota, alleging, among other things, employment discrimination and wrongful failure to name him as an inventor on certain Seagate patents. On March 31, 2014, the district court granted Seagate’s summary judgment motion. Mr. Shukh filed a notice of appeal on April 7, 2014. On October 2, 2015, the U.S. Court of Appeals for the Federal Circuit vacated and remanded the district court’s grant of summary judgment on Mr. Shukh’s claim for correction of inventorship and affirmed the district court’s grant of summary judgment as to all other claims. On October 29, 2015, Mr. Shukh filed a petition for rehearing en banc with the court of appeals; the petition was denied on December 17, 2015. On March 16, 2016, Shukh filed a petition for writ of certiorari to the U.S. Supreme Court; the petition was denied on June 27, 2016. In view of the uncertainty regarding the amount of damages, if any, that could be awarded in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter.

Enova Technology Corporation v. Seagate Technology (US) Holdings, Inc., et al.—On June 5, 2013, Enova Technology Corporation (“Enova”) filed a complaint against Seagate Technology (US) Holdings, Inc. and Seagate Technology LLC in the U.S. District Court for the District of Delaware alleging infringement of U.S. Patent No. 7,136,995 (the '"995 patent"), “Cryptographic Device,” and U.S. Patent No. 7,900,057 (the "'057 patent"), “Cryptographic Serial ATA Apparatus and Method.” The Company believes the claims are without merit and intends to vigorously defend this case. On April 27, 2015, the district court ordered a stay of the case, in view of proceedings regarding the ‘995 and ‘057 patents before the Patent Trial and Appeal Board (“PTAB”) of the U.S. Patent and Trademark Office. On September 2, 2015, PTAB issued its final written decision that claims 1-15 of the ‘995 patent are held unpatentable. On December 18, 2015, PTAB issued its final written decisions that claims 1-32 and 40-53 of the ‘057 patent are held unpatentable. On February 4, 2016, PTAB issued its final written decision that claims 33-39 of the ‘057 patent are held unpatentable. Enova has appealed PTAB’s decisions on the ‘995 patent and the ‘057 patent to the U.S. Court of Appeals for the Federal Circuit. Oral argument for the appeal from PTAB’s decision on the ‘995 patent is scheduled for March 13, 2017, at the court of appeals. A hearing before the court of appeals for the appeal from PTAB’s decision on the ‘057 patent has not yet been scheduled. In view of the uncertainty regarding the amount of damages, if any, that could be awarded in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter.

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.” The Company believes the claims asserted in the complaint are without merit and intends to vigorously defend this case. In view of the uncertainty regarding the amount of damages, if any, that could be awarded in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter.

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 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, 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 European Union REACH Directive (Registration, Evaluation, Authorization, and Restriction of Chemicals, EC 1907/2006) also restricts substances of very high concern (“SVHCs”) in products. If the Company or its suppliers fails 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.

Other Matters

The Company is involved in a number of other judicial and administrative proceedings incidental to its business, and the Company may be involved in various legal proceedings 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.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation and Consolidation, Policy

The 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. generally accepted accounting principles 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 condensed consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the condensed consolidated financial position, results of operations, comprehensive income, cash flows and shareholders’ equity for the periods presented. Such adjustments are of a normal and recurring nature. Certain prior period amounts reported in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation. 

The Company’s Consolidated Financial Statements for the fiscal year ended July 1, 2016, are included in its Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (“SEC”) on August 5, 2016. The Company believes that the disclosures included in the unaudited condensed consolidated financial statements, when read in conjunction with its Consolidated Financial Statements as of July 1, 2016, and the notes thereto, are adequate to make the information presented not misleading.

Fiscal Period, Policy [Policy Text Block]

The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Both the three and six months endedDecember 30, 2016 and the three and six months endedJanuary 1, 2016 consisted of 13 weeks and 26 weeks, respectively. Fiscal year 2017 will be comprised of 52 weeks and will end on June 30, 2017. The fiscal quarters ended December 30, 2016, September 30, 2016, and January 1, 2016, are also referred to herein as the “December 2016 quarter”, the “September 2016 quarter”, and the “December 2015 quarter”, respectively.

Recently Issued Accounting Pronouncements, Policy

Recently Issued Accounting Pronouncements

In May 2014, August 2015, April 2016, May 2016 and December 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09 (ASC Topic 606), Revenue from Contracts with Customers, ASU 2015-14 (ASC Topic 606) Revenue from Contracts with Customers, Deferral of the Effective Date, ASU 2016-10 (ASC Topic 606) Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing, ASU 2016-12 (ASC Topic 606) Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients, and ASU 2016-20 (ASC Topic 606) Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,respectively.ASC Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted for annual periods beginning after December 15, 2016, which is first quarter of fiscal 2018 for the Company. This standard may be applied retrospectively to all prior periods presented, or retrospectively with a cumulative adjustment to retained earnings in the year of adoption ("modified retrospective transition approach"). The Company is in the process of assessing the impact, if any, on its condensed consolidated financial statements and plans to adopt the modified retrospective transition approach.

In July 2015, the FASB issued ASU 2015-11 (ASC Topic 330), Inventory: Simplifying the Measurement of Inventory. The amendments in this ASU require inventory measurement at the lower of cost and net realizable value. The Company is required to adopt the guidance in the first quarter of fiscal 2018. Early adoption is permitted by all entities as of the beginning of an interim or annual reporting period. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01 (ASC Subtopic 825-10), Financial Instruments - Overall Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this ASU require entities to measure all investments in equity securities at fair value with changes recognized through net income. This requirement does not apply to investments that qualify for the equity method of accounting, to those that result in consolidation of the investee, or for which the entity meets a practicability exception to fair value measurement. Additionally, the amendments eliminate certain disclosure requirements related to financial instruments measured at amortized cost and add disclosures related to the measurement categories of financial assets and financial liabilities.The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted for only certain portions of the ASU. The Company is in the process of assessing the impact, if any, on its condensed consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02 (ASC Topic 842), Leases. The ASU amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The Company is required to adopt the guidance in the first quarter of fiscal 2020. Early adoption is permitted. The Company is in the process of assessing the impact on its condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09 (ASC Topic 718), Stock Compensation - Improvements to Employee Share-Based Payment Accounting. The amendments in this ASU are intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax consequences, classification on the consolidated statement of cash flows and treatment of forfeitures. The Company is required to adopt the guidance in the first quarter of fiscal 2018. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15 (ASC Topic 230), Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments. The amendments in this ASU are intended to clarify how certain cash receipts and cash payment are presented and classified in the statement of cash flows. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16 (ASC Topic 740), Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory. The amendments in this ASU require the recognition of the income tax consequences for intra-entity transfers of assets other than inventory when the transfer occurs. Under current GAAP, current and deferred income taxes for intra-entity asset transfers are not recognized until the asset has been sold to an outside party. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01 (ASC Topic 805), Business Combination: Clarifying the Definition of a Business. The amendments in this ASU change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The Company is required to adopt the guidance in the first quarter of fiscal 2019. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its condensed consolidated financial statements.

Recently Adopted Accounting Pronouncements

In April 2015 and August 2015, the FASB issued ASU 2015-03 (ASC Subtopic 835-30), Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs and ASU 2015-15 (ASC Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, respectively.The ASUs require that debt issuance costs related to a recognized debt liability, with the exception of those related to line-of-credit arrangements, be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU 2015-03 became effective and was adopted by the Company in the September 2016 quarter on a retrospective basis. The adoption of this guidance resulted in a reduction to Other assets, net and Long-term debt by $39 million, within the Consolidated Balance Sheet as of July 1, 2016. ASU 2015-15 became effective and was adopted by the Company in the September 2016 quarter on a prospective basis with no material impact on the Company’s condensed consolidated financial statements and disclosures.

In September 2015, the FASB issued ASU 2015-16 (ASC Topic 805), Business Combinations Simplifying the Accounting for Measurement-Period Adjustments. The amendments in this update require that an acquirer recognize measurement period adjustments in the period in which the adjustments are determined. The income effects of such measurement period adjustments are to be recorded in the same period’s financial statements but calculated as if the accounting had been completed as of the acquisition date. The impact of measurement period adjustments to earnings that relate to prior period financial statements are to be presented separately on the income statement or disclosed by line item. The amendments in this update are for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2015. This ASU became effective and was adopted by the Company in the September 2016 quarter on a prospective basis with no material impact on the Company’s condensed consolidated financial statements and disclosures.

In November 2016, the FASB issued ASU 2016-18 (ASC Topic 230), Statement of Cash Flows: Restricted Cash. The amendments in this update provide guidance on the classification and presentation of changes in restricted cash on the statement of cash flows. The ASU requires amounts generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the total beginning and ending balances for the periods presented on the statement of cash flows. The amendments in this update are for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. The Company elected to adopt this ASU in the December 2016 quarter on a retrospective basis with no material impact on the Company's condensed consolidated financial statements and disclosures. The Company classifies restricted cash within Other current assets in the condensed consolidated balance sheets.

Derivatives, Policy [Policy Text Block]

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 in the Condensed Consolidated Balance Sheets at fair value. The changes in the fair value of the effective portions of designated cash flow hedges are recorded in Accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments and the ineffective portions of cash flow hedges are adjusted to fair value through earnings.

Standard Product Warranty, Policy [Policy Text Block]

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 return rates in order to determine its warranty obligation.

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Balance Sheet Information (Tables)

6 Months Ended

Dec. 30, 2016

Disclosure Text Block Supplement [Abstract]

Summary of fair value and amortized cost of investments, by major type

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of July 1, 2016: 

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale securities:
Money market funds	$	232	$	—	$	232
Certificates of deposit	5		—		5
Corporate bonds	6		—		6
Total	$	243	$	—	$	243
Included in Cash and cash equivalents					$	230
Included in Short-term investments					6
Included in Other current assets					7
Total					$	243

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of December 30, 2016: 

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale securities:
Money market funds	$	816	$	—	$	816
Certificates of deposit	3		—		3
Total	$	819	$	—	$	819
Included in Cash and cash equivalents					$	815
Included in Other current assets					$	4
Total					$	819

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 at December 30, 2016, by remaining contractual maturity were as follows:

(Dollars in millions)	Amortized Cost		Fair Value
Due in less than 1 year	$	819	$	819
Due in 1 to 5 years	—		—
Thereafter	—		—
Total	$	819	$	819

Cash, cash equivalents, and restricted cash

The following table provides a summary of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that reconciles to the corresponding amount in the Condensed Consolidated Statements of Cash Flows:

(Dollars in millions)	December 30, 2016		July 1, 2016		January 1, 2016		July 3, 2015
Cash and cash equivalents	$	1,716	$	1,125	$	1,258	$	2,479
Restricted cash included in Other current assets	4		7		7		7
Total cash, cash equivalents, and restricted cash shown in the Statements of Cash Flows	$	1,720	$	1,132	$	1,265	$	2,486

Inventories

The following table provides details of the inventory balance sheet item: 

(Dollars in millions)	December 30, 2016		July 1, 2016
Raw materials and components	$	312	$	307
Work-in-process	362		297
Finished goods	334		264
	$	1,008	$	868

Property, Equipment and Leasehold Improvements, net

The components of property, equipment and leasehold improvements, net, were as follows:

(Dollars in millions)	December 30, 2016			July 1, 2016
Property, equipment and leasehold improvements	$	9,799		$	9,884
Accumulated depreciation and amortization	(7,787		)	(7,724		)
	$	2,012		$	2,160

Accrued expenses

The following table provides details of the accrued expenses balance sheet item: 

(Dollars in millions)	December 30, 2016		July 1, 2016
Dividends payable	$	186	$	—
Other accrued expenses	496		444
Total	$	682	$	444

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 Marketable Securities (a)		Unrealized Gains (Losses) on Post-Retirement Plans			Foreign Currency Translation Adjustments			Total
Balance at July 1, 2016	$	(1	)	$	—	$	(7	)	$	(17	)	$	(25	)
Other comprehensive income (loss) before reclassifications	(3		)	—		—			(6		)	(9		)
Amounts reclassified from AOCI	1			—		—			—			1
Other comprehensive income (loss)	(2		)	—		—			(6		)	(8		)
Balance at December 30, 2016	$	(3	)	$	—	$	(7	)	$	(23	)	$	(33	)
Balance at July 3, 2015	$	1		$	—	$	(15	)	$	(16	)	$	(30	)
Other comprehensive income (loss) before reclassifications	(2		)	—		1			(3		)	(4		)
Amounts reclassified from AOCI	2			—		—			—			2
Other comprehensive income (loss)	—			—		1			(3		)	(2		)
Balance at January 1, 2016	$	1		$	—	$	(14	)	$	(19	)	$	(32	)

___________________________________________

(a)The cost of a security sold or the amount reclassified out of AOCI into earnings was determined using specific identification.

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Debt (Tables)

6 Months Ended

Dec. 30, 2016

Debt Disclosure [Abstract]

Future principal payments on long-term debt

At December 30, 2016, future principal payments on long-term debt were as follows (in millions):

Fiscal Year	Amount
Remainder of 2017	$	—
2018	—
2019	800
2020	—
2021	—
Thereafter	3,333
Total	$	4,133

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Acquisitions (Tables)

6 Months Ended

Dec. 30, 2016

Dot Hill [Domain]

Business Acquisition [Line Items]

Fair value of assets acquired and liabilities assumed

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:

(Dollars in millions)	Amount
Cash and cash equivalents	$	40
Accounts receivable, net	48
Inventories	21
Other current and non-current assets	7
Property, plant and equipment	10
Intangible assets	252
Goodwill	364
Total assets	742
Accounts payable, accrued expenses and other	(68		)
Total liabilities	(68		)
Total	$	674

The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the period over which each intangible asset will be amortized:

(Dollars in millions)	Fair Value		Weighted- Average Amortization Period
Existing technology	$	164	5.0 years
Customer relationships	71		7.0 years
Trade names	3		5.0 years
Total amortizable intangible assets acquired	238		5.5 years
In-process research and development	14
Total acquired identifiable intangible assets	$	252

LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member]

Business Acquisition [Line Items]

Fair value of assets acquired and liabilities assumed

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:

(Dollars in millions)	Amount
Inventories	$	37
Property, plant and equipment	22
Intangible assets	141
Other assets	6
Goodwill	337
Total assets	543
Liabilities	(93		)
Total liabilities	(93		)
Total	$	450

The following table shows the fair value of the separately identifiable intangible assets at the time of acquisition and the weighted-average period over which intangible assets within each category will be amortized:

(Dollars in millions)	Fair Value		Weighted- Average Amortization Period
Existing technology	$	84	3.5 years
Customer relationships	40		3.8 years
Trade names	17		4.5 years
Total acquired identifiable intangible assets	$	141	3.7 years

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Dec. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill

The changes in the carrying amount of goodwill for the six months ended December 30, 2016, are as follows:

(Dollars in millions)	Amount
Balance at July 1, 2016	$	1,237
Goodwill acquired	—
Foreign currency translation effect	—
Balance at December 30, 2016	$	1,237

Carrying value of intangible assets

The carrying value of other intangible assets subject to amortization as of December 30, 2016, is set forth in the following table: 

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	297	$	(111	)	$	186	3.8 years
Customer relationships	510		(373		)	137		3.1 years
Trade name	29		(18		)	11		2.3 years
Other intangible assets	29		(13		)	16		3.0 years
Total amortizable other intangible assets	$	865	$	(515	)	$	350	3.4 years

The carrying value of other intangible assets subject to amortization as of July 1, 2016 is set forth in the following table:

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	297	$	(79	)	$	218	4.1 years
Customer relationships	510		(328		)	182		3.2 years
Trade name	29		(14		)	15		2.6 years
Other intangible assets	29		(10		)	19		3.2 years
Total amortizable other intangible assets	$	865	$	(431	)	$	434	3.6 years

Expected amortization expense for acquisition-related intangible assets

As of December 30, 2016, expected amortization expense for other intangible assets for each of the next five fiscal years and thereafter is as follows:

(Dollars in millions)	Amount
Remainder of 2017	$	82
2018	106
2019	68
2020	50
2021	23
Thereafter	21
Total	$	350

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Derivative Financial Instruments (Tables)

6 Months Ended

Dec. 30, 2016

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 30, 2016 and July 1, 2016:

	As of December 30, 2016
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
Singapore Dollars	$	45	$	48
Thai Bhat	43		23
British Pound Sterling	37		—

	As of July 1, 2016
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
British Pound Sterling	$	47	$	10

Schedule of gross fair value of derivative instruments

The following tables show the Company’s derivative instruments measured at fair value as reflected in the Condensed Consolidated Balance Sheet as of December 30, 2016 and July 1, 2016:

	As of December 30, 2016
	Asset Derivatives			Liability Derivatives
(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	$	—	Accrued expenses	$	(4	)
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	—		Accrued expenses	(1		)
Total return swap	Other current assets	—		Accrued expenses	—
Total derivatives		$	—		$	(5	)

	As of July 1, 2016
	Asset Derivatives			Liability Derivatives
(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	$	—	Accrued expenses	$	(2	)
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	—		Accrued expenses	(1		)
Total return swap	Other current assets	3		Accrued expenses	—
Total derivatives		$	3		$	(3	)

Schedule of the effect of derivative instruments on Other comprehensive income (loss) and the Consolidated Statement of Operations

(Dollars in millions)

Derivatives Designated as Hedging Instruments	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)					Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)						Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a)
	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	$	—	$	(2	)	Cost of revenue	$	(1	)	$	(2	)	Cost of revenue	$	—	$	—

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivatives	Amount of Gain or (Loss) Recognized in Income on Derivatives
		For the Three Months		For the Six Months
Foreign currency forward exchange contracts	Other, net	$	1	$	(4	)
Total return swap	Operating expenses	1		(4		)

___________________________________________

(a) The amount of gain or (loss) recognized in income represents $0 million related to the ineffective portion of the hedging relationships and $0 million related to the amount excluded from the assessment of hedge effectiveness for the three and six months endedJanuary 1, 2016, respectively.

The following tables show the effect of the Company’s derivative instruments on the Condensed Consolidated Statement of Comprehensive Income and the Condensed Consolidated Statement of Operations for the three and six months endedDecember 30, 2016:

(Dollars in millions)

Derivatives Designated as Hedging Instruments	Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)					Location of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a)
	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	$	(2	)	$	(3	)	Cost of revenue	$	—	$	(1	)	Cost of revenue	$	—	$	—

Derivatives Not Designated as Hedging Instruments	Location of Gain or (Loss) Recognized in Income on Derivative	Amount of Gain or (Loss) Recognized in Income on Derivative
		For the Three Months			For the Six Months
Foreign currency forward exchange contracts	Other, net	$	(2	)	$	(3	)
Total return swap	Operating expenses	1			4

___________________________________________

(a) The amount of gain or (loss) recognized in income represents $0 million related to the ineffective portion of the hedging relationships and $0 million related to the amount excluded from the assessment of hedge effectiveness for the three and six months endedDecember 30, 2016, respectively.

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Fair Value (Tables)

6 Months Ended

Dec. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on 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 July 1, 2016:

	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
Assets:
Money market funds	$	230	$	—		$	—	$	230
Corporate bonds	—		6			—		6
Total cash equivalents and short-term investments	230		6			—		236
Restricted cash and investments:
Money market funds	2		—			—		2
Certificates of deposit	—		5			—		5
Derivative assets	—		3			—		3
Total assets	$	232	$	14		$	—	$	246
Liabilities:
Derivative liabilities	$	—	$	(3	)	$	—	$	(3	)
Total liabilities	$	—	$	(3	)	$	—	$	(3	)

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 30, 2016:

	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
Assets:
Money market funds	$	815	$	—		$	—	$	815
Total cash equivalents and short-term investments	815		—			—		815
Restricted cash and investments:
Money market funds	1		—			—		1
Certificates of deposit	—		3			—		3
Total assets	$	816	$	3		$	—	$	819
Liabilities:
Derivative liabilities	$	—	$	(5	)	$	—	$	(5	)
Total liabilities	$	—	$	(5	)	$	—	$	(5	)

Schedule of Fair Value, by Balance Sheet Grouping, Measured on Recurring Basis

	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
Assets:
Cash and cash equivalents	$	815	$	—		$	—	$	815
Other current assets	1		3			—		4
Total assets	$	816	$	3		$	—	$	819
Liabilities:
Accrued expenses	$	—	$	(5	)	$	—	$	(5	)
Total liabilities	$	—	$	(5	)	$	—	$	(5	)

	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
Assets:
Cash and cash equivalents	$	230	$	—		$	—	$	230
Short-term investments	—		6			—		6
Other current assets	2		8			—		10
Total assets	$	232	$	14		$	—	$	246
Liabilities:
Accrued expenses	$	—	$	(3	)	$	—	$	(3	)
Total liabilities	$	—	$	(3	)	$	—	$	(3	)

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the fair value and amortized cost of the Company’s debt in order of maturity:

	December 30, 2016					July 1, 2016
(Dollars in millions)	Carrying Amount			Estimated Fair Value		Carrying Amount			Estimated Fair Value
3.75% Senior Notes due November 2018	$	800		$	822	$	800		$	804
7.00% Senior Notes due November 2021	158			163		158			164
4.75% Senior Notes due June 2023	990			984		990			857
4.75% Senior Notes due January 2025	995			944		995			795
4.875% Senior Notes due June 2027	698			633		698			514
5.75% Senior Notes due December 2034	489			419		489			357
	$	4,130		$	3,965	$	4,130		$	3,491
Less: debt issuance costs	(37		)	—		(39		)	—
Long-term debt, net of debt issuance costs	$	4,093		$	3,965	$	4,091		$	3,491
Less: short-term borrowings and current portion of long-term debt	—			—		—			—
Long-term debt, less current portion	$	4,093		$	3,965	$	4,091		$	3,491

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Equity (Tables)

6 Months Ended

Dec. 30, 2016

Equity [Abstract]

Schedule of Share Repurchases

The following table sets forth information with respect to repurchases of the Company’s shares during the six months ended December 30, 2016:

(In millions)	Number of Shares Repurchased	Dollar Value of Shares Repurchased
Repurchases of ordinary shares	7	$	248
Tax withholding related to vesting of equity awards	1	24
Total	8	$	272

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Guarantees (Tables)

6 Months Ended

Dec. 30, 2016

Guarantees [Abstract]

Schedule of Product Warranty Liability

Changes in the Company’s product warranty liability during the three and six months endedDecember 30, 2016 and January 1, 2016 were as follows:

	For the Three Months Ended						For the Six Months Ended
(Dollars in millions)	December 30, 2016			January 1, 2016			December 30, 2016			January 1, 2016
Balance, beginning of period	$	216		$	225		$	206		$	248
Warranties issued	34			33			65			66
Repairs and replacements	(29		)	(40		)	(59		)	(81		)
Changes in liability for pre-existing warranties, including expirations	1			3			10			(12		)
Warranty liability assumed from business acquisitions	—			2			—			2
Balance, end of period	$	222		$	223		$	222		$	223

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Earnings Per Share (Tables)

6 Months Ended

Dec. 30, 2016

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 income per share attributable to the shareholders of Seagate Technology plc:

	For the Three Months Ended				For the Six Months Ended
(In millions, except per share data)	December 30, 2016		January 1, 2016		December 30, 2016		January 1, 2016
Numerator:
Net income	$	297	$	165	$	464	$	198
Number of shares used in per share calculations:
Total shares for purposes of calculating basic net income per share	296		299		297		301
Weighted-average effect of dilutive securities:
Employee equity award plans	2		2		2		3
Total shares for purpose of calculating diluted net income per share	298		301		299		304
Net income per share:
Basic	$	1.00	$	0.55	$	1.56	$	0.66
Diluted	$	1.00	$	0.55	$	1.55	$	0.65

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Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ 37	$ 39
Accounting Standards Update 2015-03 [Member] | Other Assets [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs		(39)
Accounting Standards Update 2015-03 [Member] | Long-term Debt [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs		$ 39

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Balance Sheet Information (Summary of fair value and amortized cost of investments, by major type)(Details) - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016	Jan. 01, 2016	Jul. 03, 2015
Investments - Available-for-sale and Trading securities
Restricted cash included in Other current assets	$ 4	$ 7	$ 7	$ 7
Available-for-sale securities:
Amortized Cost	819	243
Unrealized Gain/(Loss)	0	0
Fair Value	819	243
Cash and cash equivalents [Member]
Available-for-sale securities:
Fair Value	815	230
Short-term investments [Member]
Available-for-sale securities:
Fair Value		6
Other current assets [Member]
Available-for-sale securities:
Fair Value	4	7
Money market funds [Member]
Available-for-sale securities:
Amortized Cost	816	232
Unrealized Gain/(Loss)	0	0
Fair Value	816	232
Certificates of deposit [Member]
Available-for-sale securities:
Amortized Cost	3	5
Unrealized Gain/(Loss)	0	0
Fair Value	$ 3	5
Corporate bonds [Member]
Available-for-sale securities:
Amortized Cost		6
Unrealized Gain/(Loss)		0
Fair Value		$ 6

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Balance Sheet Information Balance Sheet Information (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 30, 2016	Jul. 01, 2016	Jan. 01, 2016	Jul. 03, 2015
Schedule of Available-for-sale Securities [Line Items]
Restricted cash included in Other current assets	$ 4	$ 7	$ 7	$ 7
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	$ 0	0
Available-for-sale Securities, Cost Basis of Other-than-temporarily Imparied Securities		$ 0

XML

Balance Sheet Information (Fair value and amortized cost of available-for-sale securities by contractual maturity) (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	$ 0	$ 0
Available-for-sale Securities, Amortized Cost Basis	819	$ 243
Amortized Cost
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Amortized Cost Basis	819
AvailableForSaleSecuritiesDebtMaturitiesAfterOneThroughFiveYearsAmortize	0
AvailableForSaleSecuritiesDebtMaturitiesAfterFiveYearsAmortizedCost	0
Total Amortized Cost	819
Fair Value
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value	819
Available-for-sale Securities, Debt Maturities, after One Through Five Years, at Fair Value	0
Available-for-sale Securities, Debt Maturities, after Five Years Fair Value	0
Total Fair Value	$ 819

XML

Balance Sheet Information (Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016	Jan. 01, 2016	Jul. 03, 2015
Investments, Debt and Equity Securities [Abstract]
Cash and cash equivalents	$ 1,716	$ 1,125	$ 1,258	$ 2,479
Restricted cash included in Other current assets	4	7	7	7
Total cash, cash equivalents, and restricted cash shown in the Statements of Cash Flows	$ 1,720	$ 1,132	$ 1,265	$ 2,486

XML

Balance Sheet Information (Inventories) (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016
Inventory, Net [Abstract]
Raw materials and components	$ 312	$ 307
Work-in-process	362	297
Finished goods	334	264
Total inventories	$ 1,008	$ 868

XML

Balance Sheet Information (Property, Equipment and Leasehold Improvements, net) (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016
Property, Plant and Equipment, Net [Abstract]
Property, equipment and leasehold improvements	$ 9,799	$ 9,884
Accumulated depreciation and amortization	(7,787)	(7,724)
Total property, equipment and leasehold improvements, net	$ 2,012	$ 2,160

XML

Balance Sheet Information (Accrued expenses) (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jan. 01, 2016
Payables and Accruals [Abstract]
Dividends payable	$ 186	$ 0
Other accrued expenses	496	444
Accrued expenses total	$ 682	$ 444

XML

Balance Sheet Information (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 01, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Beginning balance			$ 1,593
Other comprehensive income (loss)	$ (9)	$ (2)	(8)	$ (2)
Ending balance	1,523		1,523
Accumulated Other Comprehensive Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Beginning balance			(25)	(30)
Other comprehensive income (loss) before reclassifications			(9)	(4)
Amounts reclassified from AOCI			1	2
Other comprehensive income (loss)			(8)	(2)
Ending balance	(33)	(32)	(33)	(32)
Unrealized Gains (Losses) on Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Beginning balance			(1)	1
Other comprehensive income (loss) before reclassifications			(3)	(2)
Amounts reclassified from AOCI			1	2
Other comprehensive income (loss)			(2)	0
Ending balance	(3)	1	(3)	1
Unrealized Gains (Losses) on Marketable Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Beginning balance			0	0
Other comprehensive income (loss) before reclassifications			0	0
Amounts reclassified from AOCI			0	0
Other comprehensive income (loss)			0	0
Ending balance	0	0	0	0
Unrealized Gains (Losses) on post-retirement plans [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Beginning balance			(7)	(15)
Other comprehensive income (loss) before reclassifications			0	1
Amounts reclassified from AOCI			0	0
Other comprehensive income (loss)			0	1
Ending balance	(7)	(14)	(7)	(14)
Foreign currency translation adjustments [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Beginning balance			(17)	(16)
Other comprehensive income (loss) before reclassifications			(6)	(3)
Amounts reclassified from AOCI			0	0
Other comprehensive income (loss)			(6)	(3)
Ending balance	$ (23)	$ (19)	$ (23)	$ (19)

XML

Debt (Narrative) (Details) - USD ($) $ in Millions	Dec. 30, 2016	May 14, 2015	Jan. 15, 2015	Dec. 02, 2014	May 28, 2014	Nov. 05, 2013	May 22, 2013	Apr. 30, 2013	May 18, 2011
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 700
Sub-limit for issuance of letters of credit under revolving credit facility								$ 75
Line of Credit Facility Letters of Credit Outstanding	$ 0
Senior Notes 3.75 Percent due November 2018 [Member]
Debt Instrument [Line Items]
Aggregate principal amount						$ 800
Stated interest rate (as a percent)						3.75%
Senior Notes 7.00 Percent Due November 2021 [Member]
Debt Instrument [Line Items]
Aggregate principal amount									$ 600
Stated interest rate (as a percent)									7.00%
Senior Notes 4.75 Percent Due June 2023 [Member]
Debt Instrument [Line Items]
Aggregate principal amount							$ 1,000
Stated interest rate (as a percent)							4.75%
Senior Notes 4.75 Percent Due January 2025 [Member]
Debt Instrument [Line Items]
Aggregate principal amount					$ 1,000
Stated interest rate (as a percent)					4.75%
Senior Note 4.875 percent Due June 2027 [Domain]
Debt Instrument [Line Items]
Aggregate principal amount		$ 700
Stated interest rate (as a percent)		4.875%
Senior Note 5.75 percent Due December 2034 [Domain]
Debt Instrument [Line Items]
Aggregate principal amount				$ 500
Stated interest rate (as a percent)				5.75%

XML

Debt (Future principal payments on long-term debt) (Details) $ in Millions	Dec. 30, 2016 USD ($)
Debt Disclosure [Abstract]
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year	$ 0
Thereafter	3,333
Total future principal payments on long-term debt	4,133
Long-term Debt, Maturities, Repayments of Principal in Year Two	0
Long-term Debt, Maturities, Repayments of Principal in Year Three	800
Long-term Debt, Maturities, Repayments of Principal in Year Four	0
Long-term Debt, Maturities, Repayments of Principal in Year Five	$ 0

XML

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 01, 2016
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Income Tax Expense (Benefit)	$ 13	$ 15	$ 19	$ 13
Discrete tax (benefits) charges	1		$ (4)	$ (3)
Domestic federal statutory rate (as a percent)		25.00%	25.00%
Unrecognized Tax Benefits, Period Increase (Decrease)			$ 4
Unrecognized Tax Benefits	66		66
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	66		66
Minimum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	$ 12		$ 12

XML

Acquisitions (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 06, 2015	Sep. 02, 2014
Dot Hill [Domain]
Business Acquisition [Line Items]
Business Acquisition Costs Of Acquired Entity Cash Paid Per Share	$ 9.75
Cash paid for consideration	$ 674
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member]
Business Acquisition [Line Items]
Cash paid for consideration		$ 450

XML

Acquisitions (Fair Value Of Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016	Oct. 06, 2015	Sep. 02, 2014
Business Acquisition [Line Items]
Goodwill	$ 1,237	$ 1,237
Liabilities	$ 7,038	$ 6,620
Dot Hill [Domain]
Business Acquisition [Line Items]
Cash and cash equivalents			$ 40
Accounts receivable, net			48
Inventories			21
Business Combination, Recognized Identifiable Assets Acquired And Liabilities Assumed, Other Current And Noncurrent Assets			7
Property, plant and equipment			10
Intangible assets			252
Goodwill			364
Total assets			742
Accounts payable and accrued expenses			(68)
Total liabilities			(68)
Total			$ 674
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member]
Business Acquisition [Line Items]
Inventories				$ 37
Other current and non-current assets				6
Property, plant and equipment				22
Intangible assets				141
Goodwill				337
Total assets				543
Liabilities				93
Total liabilities				(93)
Total				$ 450

XML

Acquisitions (Fair Value Of Finite-Lived Intangible Assets Acquired) (Details) - USD ($) $ in Millions	Oct. 06, 2015	Sep. 02, 2014	Dec. 30, 2016	Jul. 01, 2016
Dot Hill [Domain]
Intangible assets acquired
Acquired identifiable intangible asset, Amount	$ 238
Acquired identifiable intangible asset, Weighted Average Useful Life	5 years 6 months
Total acquired identifiable intangible assets	$ 252
Dot Hill [Domain] | Technology-Based Intangible Assets [Member]
Intangible assets acquired
Acquired identifiable intangible asset, Amount	$ 164
Acquired identifiable intangible asset, Weighted Average Useful Life	5 years
Dot Hill [Domain] | Customer relationships [Member]
Intangible assets acquired
Acquired identifiable intangible asset, Amount	$ 71
Acquired identifiable intangible asset, Weighted Average Useful Life	7 years
Dot Hill [Domain] | Trade name [Member]
Intangible assets acquired
Acquired identifiable intangible asset, Amount	$ 3
Acquired identifiable intangible asset, Weighted Average Useful Life	5 years
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member]
Intangible assets acquired
Acquired identifiable intangible asset, Amount		$ 141
Acquired identifiable intangible asset, Weighted Average Useful Life		3 years 8 months 12 days
Total acquired identifiable intangible assets		$ 141
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member] | Technology-Based Intangible Assets [Member]
Intangible assets acquired
Acquired identifiable intangible asset, Amount		$ 84
Acquired identifiable intangible asset, Weighted Average Useful Life		3 years 6 months
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member] | Customer relationships [Member]
Intangible assets acquired
Acquired identifiable intangible asset, Amount		$ 40
Acquired identifiable intangible asset, Weighted Average Useful Life		3 years 9 months
LSI’s Accelerated Solutions Division (“ASD”) and Flash Components Division (“FCD”) [Member] | Trade name [Member]
Intangible assets acquired
Acquired identifiable intangible asset, Amount		$ 17
Acquired identifiable intangible asset, Weighted Average Useful Life		4 years 6 months
In Process Research and Development [Member]
Intangible assets acquired
In-process research and development			$ 14	$ 14

XML

Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 01, 2016
Indefinite-lived Intangible Assets [Line Items]
Amortization of intangibles	$ 42,000,000	$ 46,000,000	$ 84,000,000	$ 87,000,000
In Process Research and Development [Member]
Indefinite-lived Intangible Assets [Line Items]
Asset Impairment Charges			$ 0

XML

Goodwill and Other Intangible Assets (Changes in the carrying amount of goodwill) (Details) $ in Millions	6 Months Ended
	Dec. 30, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill, Acquired During Period	$ 0
Goodwill [Roll Forward]
Goodwill, Beginning Balance	1,237
Foreign currency translation effect	0
Goodwill, Ending Balance	$ 1,237

XML

Goodwill and Other Intangible Assets (Carrying value of intangible assets) (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Dec. 30, 2016	Jul. 01, 2016
Intangible assets acquired
Gross Carrying Amount	$ 865	$ 865
Accumulated Amortization	(515)	(431)
Net Carrying Amount	$ 350	$ 434
Weighted Average Remaining Useful Life (in years)	3 years 4 months 24 days	3 years 7 months 6 days
Technology-Based Intangible Assets [Member]
Intangible assets acquired
Gross Carrying Amount	$ 297	$ 297
Accumulated Amortization	(111)	(79)
Net Carrying Amount	$ 186	$ 218
Weighted Average Remaining Useful Life (in years)	3 years 9 months 18 days	4 years 1 month 6 days
Customer relationships [Member]
Intangible assets acquired
Gross Carrying Amount	$ 510	$ 510
Accumulated Amortization	(373)	(328)
Net Carrying Amount	$ 137	$ 182
Weighted Average Remaining Useful Life (in years)	3 years 1 month 6 days	3 years 2 months 12 days
Trade name [Member]
Intangible assets acquired
Gross Carrying Amount	$ 29	$ 29
Accumulated Amortization	(18)	(14)
Net Carrying Amount	$ 11	$ 15
Weighted Average Remaining Useful Life (in years)	2 years 3 months 18 days	2 years 7 months 6 days
Other Intangible Assets [Member]
Intangible assets acquired
Gross Carrying Amount	$ 29	$ 29
Accumulated Amortization	(13)	(10)
Net Carrying Amount	$ 16	$ 19
Weighted Average Remaining Useful Life (in years)	3 years	3 years 2 months 12 days
In Process Research and Development [Member]
Intangible assets acquired
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets	$ 14	$ 14

XML

Goodwill and Other Intangible Assets (Expected amortization expense for acquisition-related intangible assets) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 01, 2016	Jul. 01, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangibles	$ 42	$ 46	$ 84	$ 87
Remainder of 2017	82		82
2018	106		106
2019	68		68
2020	50		50
2021	23		23
Thereafter	21		21
Total	$ 350		$ 350		$ 434

XML

Restructuring and Exit Costs (Details) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 30, 2016 USD ($)	Jan. 01, 2016 USD ($)	Dec. 30, 2016 USD ($)	Jan. 01, 2016 USD ($)	Jul. 01, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 33	$ 17	$ 115	$ 76
July 2016 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	9		$ 82
Restructuring and related cost, number of positions eliminated			6,500
Payments for restructuring	15		$ 19
June 2016 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1		$ 1
Restructuring and related cost, number of positions eliminated			1,600
February 2016 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, number of positions eliminated					2,000
September 2015 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges			$ 2
Restructuring and related cost, number of positions eliminated					1,000
Payments for restructuring	1		2
Other Restructuring Plans [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	23		29
Payments for restructuring	11		12
Employee severance [Member] | July 2016 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3		75
Payments for restructuring	12		15
Employee severance [Member] | June 2016 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Payments for restructuring	3		38
Employee severance [Member] | Other Restructuring Plans [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	20		23
Payments for restructuring	4		5
Facility closing [Member] | July 2016 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3		4
Payments for restructuring	3		4
Facility closing [Member] | February 2016 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Payments for restructuring			1
Facility closing [Member] | Other Restructuring Plans [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	3		6
Payments for restructuring	7		7
Foreign currency remeasurement [Member] | July 2016 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 3		$ 3

XML

Derivative Financial Instruments Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 01, 2016	Jul. 01, 2016
Derivative Financial Instruments
Cumulative Changes In Net Gain Loss From Cash Flow Hedges Effect Net Of Tax	$ (3)		$ (3)		$ (2)
Total Return Swap [Member]
Derivative Financial Instruments
Notional value of total return swap	100		100
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member]
Derivative Financial Instruments
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net	$ 0	$ 0	$ 0	$ 0

XML

Derivative Financial Instruments (Schedule of notional value of outstanding foreign currency forward exchange contracts) (Details) - Foreign currency forward exchange contracts [Member] - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016
Derivatives designated as hedging instruments [Member] | Singapore, Dollars [Member]
Derivative Financial Instruments
Notional value of outstanding foreign currency forward exchange contracts	$ 45
Derivatives designated as hedging instruments [Member] | Thailand, Baht [Member]
Derivative Financial Instruments
Notional value of outstanding foreign currency forward exchange contracts	43
Derivatives designated as hedging instruments [Member] | British Pound Sterling [Member]
Derivative Financial Instruments
Notional value of outstanding foreign currency forward exchange contracts	37	$ 47
Derivatives not designated as hedging instruments [Member] | Singapore, Dollars [Member]
Derivative Financial Instruments
Notional value of outstanding foreign currency forward exchange contracts	48
Derivatives not designated as hedging instruments [Member] | Thailand, Baht [Member]
Derivative Financial Instruments
Notional value of outstanding foreign currency forward exchange contracts	23
Derivatives not designated as hedging instruments [Member] | British Pound Sterling [Member]
Derivative Financial Instruments
Notional value of outstanding foreign currency forward exchange contracts	$ 0	$ 10

XML

Derivative Financial Instruments (Schedule of gross fair value of derivative instruments) (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016
Fair Values of Derivative Instruments
Asset Derivatives, Other current assets	$ 0	$ 3
Liability derivatives, Accrued expenses	(5)	(3)
Other current assets [Member] | Derivatives designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member]
Fair Values of Derivative Instruments
Asset Derivatives, Other current assets	0	0
Other current assets [Member] | Derivatives not designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member]
Fair Values of Derivative Instruments
Asset Derivatives, Other current assets	0	0
Other current assets [Member] | Derivatives not designated as hedging instruments [Member] | Total Return Swap [Member]
Fair Values of Derivative Instruments
Asset Derivatives, Other current assets	0	3
Accrued Expenses [Member] | Derivatives designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member]
Fair Values of Derivative Instruments
Liability derivatives, Accrued expenses	(4)	(2)
Accrued Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member]
Fair Values of Derivative Instruments
Liability derivatives, Accrued expenses	(1)	(1)
Accrued Expenses [Member] | Derivatives not designated as hedging instruments [Member] | Total Return Swap [Member]
Fair Values of Derivative Instruments
Liability derivatives, Accrued expenses	$ 0	$ 0

XML

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. 30, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 01, 2016
Foreign currency forward exchange contracts [Member] | Other, Net [Member]
Derivatives Instruments, Gain (Loss)
Amount of Gain or (Loss) Recognized in Income on Derivative	$ (2)	$ 1	$ (3)	$ (4)
Total Return Swap [Member] | Operating Expenses [Member]
Derivatives Instruments, Gain (Loss)
Amount of Gain or (Loss) Recognized in Income on Derivative	1	1	4	(4)
Cash Flow Hedges [Member] | Foreign currency forward exchange contracts [Member]
Derivatives Instruments, Gain (Loss)
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)	(2)	0	(3)	(2)
Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a)	0	0	0	0
Gain or (loss) recognized in income, ineffective portion of hedging relationship	0	0	0	0
Cash Flow Hedges [Member] | Foreign currency forward exchange contracts [Member] | Cost of Sales [Member]
Derivatives Instruments, Gain (Loss)
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	0	(1)	(1)	(2)
Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a)	$ 0	$ 0	$ 0	$ 0

XML

Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring basis [Member] - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016
Assets:
Total cash equivalents and short-term investments	$ 815	$ 236
Restricted cash and investments:
Derivative assets		3
Total assets	819	246
Liabilities:
Derivative liabilities	(5)	(3)
Total liabilities	(5)	(3)
Money market funds [Member]
Assets:
Total cash equivalents and short-term investments	815	230
Restricted cash and investments:
Restricted cash and investments	1	2
Certificates of deposit [Member]
Restricted cash and investments:
Restricted cash and investments	3	5
Corporate bonds [Member]
Assets:
Total cash equivalents and short-term investments		6
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member]
Assets:
Total cash equivalents and short-term investments	815	230
Restricted cash and investments:
Derivative assets		0
Total assets	816	232
Liabilities:
Derivative liabilities	0	0
Total liabilities	0	0
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Money market funds [Member]
Assets:
Total cash equivalents and short-term investments	815	230
Restricted cash and investments:
Restricted cash and investments	1	2
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Certificates of deposit [Member]
Restricted cash and investments:
Restricted cash and investments	0	0
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Corporate bonds [Member]
Assets:
Total cash equivalents and short-term investments		0
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Total cash equivalents and short-term investments	0	6
Restricted cash and investments:
Derivative assets		3
Total assets	3	14
Liabilities:
Derivative liabilities	(5)	(3)
Total liabilities	(5)	(3)
Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member]
Assets:
Total cash equivalents and short-term investments	0	0
Restricted cash and investments:
Restricted cash and investments	0	0
Significant Other Observable Inputs (Level 2) [Member] | Certificates of deposit [Member]
Restricted cash and investments:
Restricted cash and investments	3	5
Significant Other Observable Inputs (Level 2) [Member] | Corporate bonds [Member]
Assets:
Total cash equivalents and short-term investments		6
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Total cash equivalents and short-term investments	0	0
Restricted cash and investments:
Derivative assets		0
Total assets	0	0
Liabilities:
Derivative liabilities	0	0
Total liabilities	0	0
Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member]
Assets:
Total cash equivalents and short-term investments	0	0
Restricted cash and investments:
Restricted cash and investments	0	0
Significant Unobservable Inputs (Level 3) [Member] | Certificates of deposit [Member]
Restricted cash and investments:
Restricted cash and investments	$ 0	0
Significant Unobservable Inputs (Level 3) [Member] | Corporate bonds [Member]
Assets:
Total cash equivalents and short-term investments		$ 0

XML

Fair Value (Schedule of Fair Value, by Balance Sheet Grouping, Measured on Recurring Basis) (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016
Assets:
Short-term investments	$ 819	$ 243
Recurring basis [Member]
Assets:
Cash and cash equivalents	815	230
Short-term investments		6
Other current assets	4	10
Total assets	819	246
Liabilities:
Accrued expenses	(5)	(3)
Total liabilities	(5)	(3)
Recurring basis [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member]
Assets:
Cash and cash equivalents	815	230
Short-term investments		0
Other current assets	1	2
Total assets	816	232
Liabilities:
Accrued expenses	0	0
Total liabilities	0	0
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets:
Cash and cash equivalents	0	0
Short-term investments		6
Other current assets	3	8
Total assets	3	14
Liabilities:
Accrued expenses	(5)	(3)
Total liabilities	(5)	(3)
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets:
Cash and cash equivalents	0	0
Short-term investments		0
Other current assets	0	0
Total assets	0	0
Liabilities:
Accrued expenses	0	0
Total liabilities	$ 0	$ 0

XML

Fair Value (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Details) - USD ($) $ in Millions	Dec. 30, 2016	Jul. 01, 2016	May 28, 2014	Nov. 05, 2013	May 22, 2013	May 18, 2011
Debt Fair Value Disclosures
Debt issuance costs	$ 37	$ 39
Long-term debt	4,093	4,091
Senior Notes 3.75 Percent due November 2018 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)				3.75%
Senior Notes 7.00 Percent Due November 2021 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)						7.00%
Senior Notes 4.75 Percent Due June 2023 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)					4.75%
Senior Notes 4.75 Percent Due January 2025 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)			4.75%
Carrying Amount [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	4,130	4,130
Less: short-term borrowings and current portion of long-term debt	0	0
Long-term debt	4,093	4,091
Carrying Amount [Member] | Senior Notes 3.75 Percent due November 2018 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	$ 800	800
Stated interest rate (as a percent)	3.75%
Carrying Amount [Member] | Senior Notes 7.00 Percent Due November 2021 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	$ 158	158
Stated interest rate (as a percent)	7.00%
Carrying Amount [Member] | Senior Notes 4.75 Percent Due June 2023 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	$ 990	990
Stated interest rate (as a percent)	4.75%
Carrying Amount [Member] | Senior Notes 4.75 Percent Due January 2025 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	$ 995	995
Stated interest rate (as a percent)	4.75%
Carrying Amount [Member] | Senior Notes 4.875 percent Due June 2027 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	$ 698	698
Stated interest rate (as a percent)	4.875%
Carrying Amount [Member] | Senior note 5.75 percent due December 2034 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	$ 489	489
Stated interest rate (as a percent)	5.75%
Fair Value, Total Balance [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	$ 3,965	3,491
Less: short-term borrowings and current portion of long-term debt	0	0
Long-term debt	3,965	3,491
Fair Value, Total Balance [Member] | Senior Notes 3.75 Percent due November 2018 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	822	804
Fair Value, Total Balance [Member] | Senior Notes 7.00 Percent Due November 2021 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	163	164
Fair Value, Total Balance [Member] | Senior Notes 4.75 Percent Due June 2023 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	984	857
Fair Value, Total Balance [Member] | Senior Notes 4.75 Percent Due January 2025 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	944	795
Fair Value, Total Balance [Member] | Senior Notes 4.875 percent Due June 2027 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	633	514
Fair Value, Total Balance [Member] | Senior note 5.75 percent due December 2034 [Member]
Debt Fair Value Disclosures
Current and noncurrent debt including short-term borrowings	$ 419	$ 357

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Fair Value (Narrative) (Details) - USD ($)	6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016	Jul. 01, 2016
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation
Cost Method Investments	$ 91,000,000		$ 113,000,000
Other, Net [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation
Cost-method Investments, Other than Temporary Impairment	$ 25,000,000	$ 10,000,000

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Equity (Narrative) (Details)	Dec. 30, 2016 USD ($) $ / shares shares	Apr. 22, 2015 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized share capital (in dollars) | $	$ 13,500
Ordinary shares, authorized | shares	1,250,000,000
Ordinary shares, par value (in dollars per share) | $ / shares	$ 0.00001
Ordinary shares, outstanding | shares	295,151,580
Preferred shares, authorized | shares	100,000,000
Preferred shares, par value (in dollars per share) | $ / shares	$ 0.00001
Preferred Stock Minimum Number of Series	1
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $	$ 1,500,000,000
April 2015 Share Repurchase [Domain]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Repurchase Program, Authorized Amount | $		$ 2,500,000,000

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Equity (Schedule of Share Repurchases) (Details) shares in Millions, $ in Millions	6 Months Ended
	Dec. 30, 2016 USD ($) shares
Share Repurchases [Line Items]
Stock Repurchased During Period, Shares | shares	7
Stock Repurchased Period to Date Value | $	$ 248
Shares Paid for Tax Withholding for Share Based Compensation | shares	1
Adjustments Related to Tax Withholding for Share-based Compensation | $	$ 24
Stock Repurchased and Retired During Period, Value | $	$ 272
Stock Repurchased and Retired During Period, Shares | shares	8

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Share-based Compensation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 01, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation	$ 33	$ 32	$ 73	$ 65

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Guarantees Guarantees (Narrative) (Details)	6 Months Ended
	Dec. 30, 2016 USD ($)
Guarantees [Abstract]
Indemnifications obligations to Officers and Directors	$ 0
intellectual property indemnification obligations	$ 0
Product Warranty Period Term, Minimum	1 year
Product Warranty Period Term, Maximum	5 years

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Guarantees (Product Warranty) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 01, 2016
Guarantees [Abstract]
Balance, beginning of period	$ 216	$ 225	$ 206	$ 248
Warranties issued	34	33	65	66
Repairs and replacements	(29)	(40)	(59)	(81)
Changes in liability for pre-existing warranties, including expirations	1	3	10	(12)
Warranty liability assumed from business acquisitions	0	2	0	2
Balance, end of period	$ 222	$ 223	$ 222	$ 223

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Earnings Per Share (Schedule of computation of basic and diluted net income (loss) per share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 30, 2016	Jan. 01, 2016	Dec. 30, 2016	Jan. 01, 2016
Numerator:
Net income	$ 297	$ 165	$ 464	$ 198
Number of shares used in per share calculations:
Total shares for purposes of calculating basic net income per share	296	299	297	301
Weighted-average effect of dilutive securities:
Employee equity award plans	2	2	2	3
Total shares for purpose of calculating diluted net income per share	298	301	299	304
Net income per share:
Basic net income per share (in dollars per share)	$ 1.00	$ 0.55	$ 1.56	$ 0.66
Diluted net income per share (in dollars per share)	$ 1.00	$ 0.55	$ 1.55	$ 0.65
Antidilutive securities excluded from computation of Earnings Per Share, amount	1	2	2	1

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Label	Element	Value
Payments for (Proceeds from) Productive Assets	us-gaap_PaymentsForProceedsFromProductiveAssets	$ 0