(Dollars in millions) | Balance at Beginning of Period | Charges (Credit) to Operations | Deductions (a) | Balance at End of Period | ||||||||||
Fiscal year ended June 30, 2017 | $ | 9 | (4 | ) | — | $ | 5 | |||||||
Fiscal year ended June 29, 2018 | $ | 5 | — | (1 | ) | $ | 4 | |||||||
Fiscal year ended June 28, 2019 | $ | 4 | — | — | $ | 4 |
Fiscal Years | |||||||||||
2019 | 2018 | 2017 | |||||||||
Options | |||||||||||
Expected term (in years) | 4.2 | 4.2 | 4.2 | ||||||||
Volatility | 39 - 40% | 38 - 42% | 38 - 42% | ||||||||
Weighted-average volatility | 39 | % | 40 | % | 39 | % | |||||
Expected dividend rate | 4.6 - 5.0% | 3.8 - 7.4% | 4.9 - 6.4% | ||||||||
Weighted-average expected dividend rate | 4.7 | % | 6.8 | % | 6.3 | % | |||||
Risk-free interest rate | 2.5 - 2.8% | 1.5 - 2.7% | 1.1 - 1.8% | ||||||||
Weighted-average fair value | $ | 11.49 | $ | 6.56 | $ | 6.83 | |||||
RSU | |||||||||||
Expected term (in years) | 4.2 | 4.2 | 4.2 | ||||||||
Expected dividend rate | 4.1 - 6.4% | 3.5 - 7.4% | 4.6 - 7.7% | ||||||||
Weighted-average expected dividend rate | 4.68 | % | 7.11 | % | 6.4 | % | |||||
Weighted-average fair value | $ | 44.37 | $ | 26.69 | $ | 30.85 | |||||
ESPP | |||||||||||
Expected term (in years) | 0.5 | 0.5 | 0.5 | ||||||||
Volatility | 34 - 42% | 37 - 38% | 36 - 49% | ||||||||
Weighted-average volatility | 38 | % | 37 | % | 43 | % | |||||
Expected dividend rate | 4.8 - 5.6% | 4.6 - 7.6% | 5.6 - 7.8% | ||||||||
Weighted-average expected dividend rate | 5.2 | % | 6.5 | % | 6.8 | % | |||||
Risk-free interest rate | 2.2 - 2.4% | 1.1 - 1.6% | 0.4 - 0.6% | ||||||||
Weighted-average fair value | $ | 12.18 | $ | 10.10 | $ | 9.78 | |||||
PSUs subject to market condition | |||||||||||
Expected term (in years) | 3.0 | 3.0 | 3.0 | ||||||||
Volatility | 46 | % | 45 | % | 41 - 42% | ||||||
Weighted-average volatility | 46 | % | 45 | % | 41 | % | |||||
Expected dividend rate | 5.0 | % | 8.1 | % | 6.3 - 7.0% | ||||||
Weighted-average expected dividend rate | 5.0 | % | 8.1 | % | 7.0 | % | |||||
Risk-free interest rate | 2.8 | % | 1.4 | % | 0.9 - 1.3% | ||||||
Weighted-average fair value | $ | 46.38 | $ | 25.90 | $ | 32.41 | |||||
PSUs subject to an AEPS condition | |||||||||||
Expected term (in years) | 4.2 | 4.2 | 4.2 | ||||||||
Expected dividend rate | 4.6 - 5.0% | 5.8 - 7.2% | 5.9 - 6.4% | ||||||||
Weighted-average expected dividend rate | 4.7 | % | 7.0 | % | 6.2 | % | |||||
Weighted-average fair value | $ | 43.92 | $ | 27.10 | $ | 31.61 |
Fiscal Years Ending | Operating Leases (Dollars in millions) | |||
2020 | $ | 20 | ||
2021 | 17 | |||
2022 | 9 | |||
2023 | 8 | |||
2024 | 5 | |||
Thereafter | 66 | |||
Total | $ | 125 |
Fiscal Year | Amount | |||
2020 | $ | — | ||
2021 | — | |||
2022 | 750 | |||
2023 | 941 | |||
2024 | 500 | |||
Thereafter | 2,100 | |||
Total | $ | 4,291 |
(Dollars in millions) | Amortized Cost | Unrealized Gain/(Loss) | Fair Value | |||||||||
Available-for-sale securities: | ||||||||||||
Money market funds | $ | 621 | $ | — | $ | 621 | ||||||
Time deposits and certificates of deposits | 395 | — | 395 | |||||||||
Total | $ | 1,016 | $ | — | $ | 1,016 | ||||||
Included in Cash and cash equivalents | $ | 1,012 | ||||||||||
Included in Other current assets | 4 | |||||||||||
Total | $ | 1,016 |
(Dollars in millions) | Amortized Cost | Unrealized Gain/(Loss) | Fair Value | |||||||||
Available-for-sale debt securities: | ||||||||||||
Money market funds | $ | 417 | $ | — | $ | 417 | ||||||
Time deposits and certificates of deposit | 133 | — | 133 | |||||||||
Other debt securities | 7 | — | 7 | |||||||||
Total | $ | 557 | $ | — | $ | 557 | ||||||
Included in Cash and cash equivalents | $ | 548 | ||||||||||
Included in Other current assets | 2 | |||||||||||
Included in Other assets, net | 7 | |||||||||||
Total | $ | 557 |
As of June 28, 2019 | ||||||||
(Dollars in millions) | Contracts Designated as Hedges | Contracts Not Designated as Hedges | ||||||
Singapore Dollar | $ | 60 | $ | 40 | ||||
Chinese Renminbi | 79 | 20 | ||||||
British Pound Sterling | 6 | 12 | ||||||
$ | 145 | $ | 72 |
As of June 29, 2018 | ||||||||
(Dollars in millions) | Contracts Designated as Hedges | Contracts Not Designated as Hedges | ||||||
Japanese Yen (a) | $ | 66 | $ | 1,310 |
As of June 28, 2019 | ||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||
(Dollars in millions) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | — | Accrued expenses | $ | — | ||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign currency forward exchange contracts | Other current assets | 1 | Accrued expenses | (1 | ) | |||||||
Total return swap | Other current assets | — | Accrued expenses | — | ||||||||
Total derivatives | $ | 1 | $ | (1 | ) |
As of June 29, 2018 | ||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||
(Dollars in millions) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | — | Accrued expenses | $ | — | ||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign currency forward exchange contracts | Other current assets | 10 | Accrued expenses | — | ||||||||
Total return swap | Other current assets | — | Accrued expenses | — | ||||||||
Total derivatives | $ | 10 | $ | — |
Derivatives Not Designated as Hedging Instruments | Location of Gain/(Loss) Recognized in Income on Derivatives | Amount of Gain/(Loss) Recognized in Income on Derivatives | ||||
Foreign currency forward exchange contracts | Other, net | $ | 20 | |||
Total return swap | Operating expenses | $ | 3 |
Derivatives Not Designated as Hedging Instruments | Location of Gain/(Loss) Recognized in Income on Derivatives | Amount of Gain/(Loss) Recognized in Income on Derivatives | ||||
Foreign currency forward exchange contracts | Other, net | $ | 10 | |||
Total return swap | Operating expenses | $ | 6 |
Fiscal Years Ended | ||||||||||||
(Dollars in million) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Revenues by Channel | ||||||||||||
OEMs | $ | 7,261 | $ | 7,863 | $ | 7,478 | ||||||
Distributors | 1,780 | 1,906 | 1,866 | |||||||||
Retailers | 1,349 | 1,415 | 1,427 | |||||||||
Total | $ | 10,390 | $ | 11,184 | $ | 10,771 | ||||||
Revenues by Geography(1) | ||||||||||||
Americas | $ | 3,310 | $ | 3,719 | $ | 3,531 | ||||||
EMEA | 1,965 | 1,983 | 2,119 | |||||||||
Asia Pacific | 5,115 | 5,482 | 5,121 | |||||||||
Total | $ | 10,390 | $ | 11,184 | $ | 10,771 |
Fiscal Years | |||||||||||
2019 | 2018 | 2017 | |||||||||
Options | |||||||||||
Expected term (in years) | 4.2 | 4.2 | 4.2 | ||||||||
Volatility | 39 - 40% | 38 - 42% | 38 - 42% | ||||||||
Weighted-average volatility | 39 | % | 40 | % | 39 | % | |||||
Expected dividend rate | 4.6 - 5.0% | 3.8 - 7.4% | 4.9 - 6.4% | ||||||||
Weighted-average expected dividend rate | 4.7 | % | 6.8 | % | 6.3 | % | |||||
Risk-free interest rate | 2.5 - 2.8% | 1.5 - 2.7% | 1.1 - 1.8% | ||||||||
Weighted-average fair value | $ | 11.49 | $ | 6.56 | $ | 6.83 | |||||
RSU | |||||||||||
Expected term (in years) | 4.2 | 4.2 | 4.2 | ||||||||
Expected dividend rate | 4.1 - 6.4% | 3.5 - 7.4% | 4.6 - 7.7% | ||||||||
Weighted-average expected dividend rate | 4.68 | % | 7.11 | % | 6.4 | % | |||||
Weighted-average fair value | $ | 44.37 | $ | 26.69 | $ | 30.85 | |||||
ESPP | |||||||||||
Expected term (in years) | 0.5 | 0.5 | 0.5 | ||||||||
Volatility | 34 - 42% | 37 - 38% | 36 - 49% | ||||||||
Weighted-average volatility | 38 | % | 37 | % | 43 | % | |||||
Expected dividend rate | 4.8 - 5.6% | 4.6 - 7.6% | 5.6 - 7.8% | ||||||||
Weighted-average expected dividend rate | 5.2 | % | 6.5 | % | 6.8 | % | |||||
Risk-free interest rate | 2.2 - 2.4% | 1.1 - 1.6% | 0.4 - 0.6% | ||||||||
Weighted-average fair value | $ | 12.18 | $ | 10.10 | $ | 9.78 | |||||
PSUs subject to market condition | |||||||||||
Expected term (in years) | 3.0 | 3.0 | 3.0 | ||||||||
Volatility | 46 | % | 45 | % | 41 - 42% | ||||||
Weighted-average volatility | 46 | % | 45 | % | 41 | % | |||||
Expected dividend rate | 5.0 | % | 8.1 | % | 6.3 - 7.0% | ||||||
Weighted-average expected dividend rate | 5.0 | % | 8.1 | % | 7.0 | % | |||||
Risk-free interest rate | 2.8 | % | 1.4 | % | 0.9 - 1.3% | ||||||
Weighted-average fair value | $ | 46.38 | $ | 25.90 | $ | 32.41 | |||||
PSUs subject to an AEPS condition | |||||||||||
Expected term (in years) | 4.2 | 4.2 | 4.2 | ||||||||
Expected dividend rate | 4.6 - 5.0% | 5.8 - 7.2% | 5.9 - 6.4% | ||||||||
Weighted-average expected dividend rate | 4.7 | % | 7.0 | % | 6.2 | % | |||||
Weighted-average fair value | $ | 43.92 | $ | 27.10 | $ | 31.61 |
Options | Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||
(In millions) | (In years) | (Dollars in millions) | |||||||||
Outstanding at June 29, 2018 | 4.0 | $ | 39.00 | 5.0 | $72 | ||||||
Granted | 0.4 | $ | 48.99 | ||||||||
Exercised | (0.4 | ) | $ | 33.55 | |||||||
Forfeitures | (0.5 | ) | $ | 35.71 | |||||||
Expirations | — | $ | — | ||||||||
Outstanding at June 28, 2019 | 3.5 | $ | 41.04 | 4.2 | $29 | ||||||
Vested and expected to vest at June 28, 2019 | 3.4 | $ | 41.06 | 4.2 | $29 | ||||||
Exercisable at June 28, 2019 | 2.1 | $ | 42.11 | 3.6 | $16 |
Nonvested Awards | Number of Shares | Weighted- Average Grant- Date Fair Value | |||||
(In millions) | |||||||
Nonvested at June 29, 2018 | 5.2 | $ | 30.74 | ||||
Granted | 2.5 | $ | 44.37 | ||||
Forfeitures | (0.6 | ) | $ | 33.45 | |||
Vested | (1.7 | ) | $ | 32.72 | |||
Nonvested at June 28, 2019 | 5.4 | $ | 36.01 |
Performance Awards | Number of Shares | Weighted- Average Grant- Date Fair Value | |||||
(In millions) | |||||||
Performance units at June 29, 2018 | 1.2 | $ | 33.34 | ||||
Granted | 0.5 | $ | 45.74 | ||||
Forfeitures | (0.4 | ) | $ | 27.11 | |||
Vested | (0.3 | ) | $ | 43.85 | |||
Performance units at June 28, 2019 | 1.0 | $ | 43.81 |
Fiscal Years Ended | ||||||||||||
(In millions, except per share data) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Numerator: | ||||||||||||
Net income | $ | 2,012 | $ | 1,182 | $ | 772 | ||||||
Number of shares used in per share calculations: | ||||||||||||
Total shares for purposes of calculating basic net income per share | 282 | 288 | 296 | |||||||||
Weighted-average effect of dilutive securities: | ||||||||||||
Employee equity award plans | 3 | 4 | 3 | |||||||||
Total shares for purposes of calculating diluted net income per share | 285 | 292 | 299 | |||||||||
Net income per share | ||||||||||||
Basic | $ | 7.13 | $ | 4.10 | $ | 2.61 | ||||||
Diluted | $ | 7.06 | $ | 4.05 | $ | 2.58 |
Fiscal Years Ended | |||||||||
(In millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | ||||||
Employee equity award plans | — | 1 | 1 |
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 | $ | 416 | $ | 132 | $ | — | $ | 548 | ||||||||
Other current assets | 1 | 2 | — | 3 | ||||||||||||
Other assets, net | — | — | 7 | 7 | ||||||||||||
Total assets | $ | 417 | $ | 134 | $ | 7 | $ | 558 | ||||||||
Liabilities: | ||||||||||||||||
Accrued expenses | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||
Total liabilities | $ | — | $ | 1 | $ | — | $ | 1 |
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 | $ | 620 | $ | 392 | $ | — | $ | 1,012 | |||||||||
Other current assets | 1 | 13 | — | 14 | |||||||||||||
Total assets | $ | 621 | $ | 405 | $ | — | — | $ | 1,026 |
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 | $ | 416 | $ | — | $ | — | $ | 416 | |||||||||
Time deposits and certificates of deposit | — | 132 | — | 132 | |||||||||||||
Total cash equivalents | 416 | 132 | — | 548 | |||||||||||||
Restricted cash and investments: | |||||||||||||||||
Money market funds | 1 | — | — | 1 | |||||||||||||
Time deposits and certificates of deposit | — | 1 | — | 1 | |||||||||||||
Other debt securities | — | — | 7 | 7 | 7 | ||||||||||||
Derivative assets | — | 1 | — | 1 | |||||||||||||
Total assets | $ | 417 | $ | 134 | $ | 7 | $ | 558 | |||||||||
Liabilities: | |||||||||||||||||
Derivative liabilities | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Total liabilities | $ | — | $ | 1 | $ | — | $ | 1 |
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 | $ | 416 | $ | 132 | $ | — | $ | 548 | ||||||||
Other current assets | 1 | 2 | — | 3 | ||||||||||||
Other assets, net | — | — | 7 | 7 | ||||||||||||
Total assets | $ | 417 | $ | 134 | $ | 7 | $ | 558 | ||||||||
Liabilities: | ||||||||||||||||
Accrued expenses | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||
Total liabilities | $ | — | $ | 1 | $ | — | $ | 1 |
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 | $ | 620 | $ | — | $ | — | $ | 620 | ||||||||
Time deposits and certificates of deposit | — | 392 | — | 392 | ||||||||||||
Total cash equivalents | 620 | 392 | — | 1,012 | ||||||||||||
Restricted cash and investments: | ||||||||||||||||
Money market funds | 1 | — | — | 1 | ||||||||||||
Time deposits and certificates of deposit | — | 3 | — | 3 | ||||||||||||
Derivative assets | — | 10 | — | 10 | ||||||||||||
Total assets | $ | 621 | $ | 405 | $ | — | $ | 1,026 |
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 | $ | 620 | $ | 392 | $ | — | $ | 1,012 | |||||||||
Other current assets | 1 | 13 | — | 14 | |||||||||||||
Total assets | $ | 621 | $ | 405 | $ | — | — | $ | 1,026 |
June 28, 2019 | June 29, 2018 | |||||||||||||||
(Dollars in millions) | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
3.75% Senior Notes due November 2018 | $ | — | $ | — | $ | 499 | $ | 501 | ||||||||
4.250% Senior Notes due March 2022 | 749 | 763 | 749 | 743 | ||||||||||||
4.75% Senior Notes due June 2023 | 941 | 973 | 951 | 942 | ||||||||||||
4.875% Senior Notes due March 2024 | 498 | 514 | 497 | 489 | ||||||||||||
4.75% Senior Notes due January 2025 | 920 | 929 | 975 | 936 | ||||||||||||
4.875% Senior Notes due June 2027 | 689 | 688 | 695 | 650 | ||||||||||||
5.75% Senior Notes due December 2034 | 489 | 482 | 489 | 441 | ||||||||||||
$ | 4,286 | $ | 4,349 | $ | 4,855 | $ | 4,702 | |||||||||
Less: debt issuance costs | (33 | ) | — | (36 | ) | — | ||||||||||
Long-term debt, net of debt issuance costs | $ | 4,253 | $ | 4,349 | $ | 4,819 | $ | 4,702 | ||||||||
Less: current portion of long-term debt, net of debt issuance costs | — | — | (499 | ) | (501 | ) | ||||||||||
Long-term debt, less current portion | $ | 4,253 | $ | 4,349 | $ | 4,320 | $ | 4,201 |
(Dollars in millions) | Amount | ||
As of June 30, 2017 | $ | 1,238 | |
Goodwill acquired | — | ||
Goodwill disposed | (1 | ) | |
Foreign currency translation effect | — | ||
As of June 29, 2018 | $ | 1,237 | |
Goodwill acquired | — | ||
Goodwill disposed | — | ||
Foreign currency translation effect | — | ||
As of June 28, 2019 | $ | 1,237 |
(Dollars in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Useful Life | ||||||||||
Existing technology | $ | 201 | $ | (143 | ) | $ | 58 | 1.9 years | ||||||
Customer relationships | 71 | (38 | ) | 33 | 3.3 years | |||||||||
Trade name | 3 | (2 | ) | 1 | 1.2 years | |||||||||
Other intangible assets | 41 | (22 | ) | 19 | 2.9 years | |||||||||
Total amortizable other intangible assets | $ | 316 | $ | (205 | ) | $ | 111 | 2.5 years |
(Dollars in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Useful Life | ||||||||||
Existing technology | $ | 256 | $ | (145 | ) | $ | 111 | 2.5 years | ||||||
Customer relationships | 89 | (42 | ) | 47 | 4.0 years | |||||||||
Trade name | 17 | (13 | ) | 4 | 1.3 years | |||||||||
Other intangible assets | 45 | (19 | ) | 26 | 3.0 years | |||||||||
Total amortizable other intangible assets | $ | 407 | $ | (219 | ) | $ | 188 | 2.9 years |
(Dollars in millions) | Amount | |||
2020 | $ | 54 | ||
2021 | 29 | |||
2022 | 20 | |||
2023 | 8 | |||
2024 | — | |||
Thereafter | — | |||
Total | $ | 111 |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
U.S. | $ | 275 | $ | (29 | ) | $ | (22 | ) | ||||
Non-U.S. | 1,097 | 1,447 | 837 | |||||||||
$ | 1,372 | $ | 1,418 | $ | 815 |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Current income tax expense: | ||||||||||||
U.S. Federal | $ | — | $ | — | $ | — | ||||||
U.S. State | — | 5 | 1 | |||||||||
Non-U.S. | 45 | 38 | 39 | |||||||||
Total Current | 45 | 43 | 40 | |||||||||
Deferred income tax (benefit) expense: | ||||||||||||
U.S. Federal | (690 | ) | 201 | (5 | ) | |||||||
U.S. State | 12 | — | — | |||||||||
Non-U.S. | (7 | ) | (8 | ) | 8 | |||||||
Total Deferred | (685 | ) | 193 | 3 | ||||||||
(Benefit) provision for income taxes | $ | (640 | ) | $ | 236 | $ | 43 |
Fiscal Years Ended | ||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | ||||||
Deferred tax assets | ||||||||
Accrued warranty | $ | 46 | $ | 55 | ||||
Inventory carrying value adjustments | 34 | 30 | ||||||
Receivable allowances | 10 | 13 | ||||||
Accrued compensation and benefits | 53 | 64 | ||||||
Depreciation | 89 | 96 | ||||||
Restructuring accruals | 4 | 5 | ||||||
Other accruals and deferred items | 15 | 34 | ||||||
Net operating losses | 743 | 812 | ||||||
Tax credit carryforwards | 582 | 549 | ||||||
Other assets | 7 | 10 | ||||||
Gross: Deferred tax assets | 1,583 | 1,668 | ||||||
Less: Valuation allowance | (460 | ) | (1,221 | ) | ||||
Net: Deferred tax assets | 1,123 | 447 | ||||||
Deferred tax liabilities | ||||||||
Unremitted earnings of certain non-U.S. entities | (16 | ) | (7 | ) | ||||
Acquisition-related items | (13 | ) | (30 | ) | ||||
Net: Deferred tax liabilities | (29 | ) | (37 | ) | ||||
Total net deferred tax assets | $ | 1,094 | $ | 410 |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Provision at statutory rate | $ | 343 | $ | 355 | $ | 204 | ||||||
Permanent differences | 3 | (2 | ) | 19 | ||||||||
Effect of U.S. corporate tax rate change | — | 524 | — | |||||||||
Valuation allowance | (742 | ) | (297 | ) | 2 | |||||||
Non-U.S. losses with no tax benefits | — | — | 17 | |||||||||
Earnings taxed at other than statutory rate | (234 | ) | (317 | ) | (185 | ) | ||||||
Research credit | (38 | ) | (25 | ) | (14 | ) | ||||||
Tax expense (benefit) related to intercompany transactions | 23 | — | (2 | ) | ||||||||
Other individually immaterial items | 5 | (2 | ) | 2 | ||||||||
(Benefit) provision for income taxes | $ | (640 | ) | $ | 236 | $ | 43 |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Balance of unrecognized tax benefits at the beginning of the year | $ | 60 | $ | 74 | $ | 76 | ||||||
Gross increase for tax positions of prior years | 22 | 2 | 2 | |||||||||
Gross decrease for tax positions of prior years | (9 | ) | (3 | ) | (7 | ) | ||||||
Gross increase for tax positions of current year | 16 | 7 | 16 | |||||||||
Gross decrease for tax positions of current year | — | — | — | |||||||||
Settlements | — | — | — | |||||||||
Lapse of statutes of limitation | (6 | ) | (20 | ) | (13 | ) | ||||||
Non-U.S. exchange gain | — | — | — | |||||||||
Balance of unrecognized tax benefits at the end of the year | $ | 83 | $ | 60 | $ | 74 |
(Dollars in millions) | Amortized Cost | Fair Value | ||||||
Due in less than 1 year | $ | 550 | $ | 550 | ||||
Due in 1 to 5 years | 3 | 3 | ||||||
Due in 6 to 10 years | — | — | ||||||
Thereafter | 4 | 4 | ||||||
Total | $ | 557 | $ | 557 |
(Dollars in millions) | As of June 29, 2018 | Effect of adoption of ASC 606 | As of June 30, 2018 | |||||||||
Accounts receivable, net | $ | 1,184 | $ | 9 | $ | 1,193 | ||||||
Inventories | $ | 1,053 | $ | (9 | ) | $ | 1,044 | |||||
Accrued expenses | $ | 598 | $ | (34 | ) | $ | 564 | |||||
Accumulated deficit | $ | (4,696 | ) | $ | 34 | $ | (4,662 | ) |
Fiscal Years Ending | Operating Leases (Dollars in millions) | |||
2020 | $ | 20 | ||
2021 | 17 | |||
2022 | 9 | |||
2023 | 8 | |||
2024 | 5 | |||
Thereafter | 66 | |||
Total | $ | 125 |
(Dollars in millions) | As of June 29, 2018 | Effect of adoption of ASC 606 | As of June 30, 2018 | |||||||||
Accounts receivable, net | $ | 1,184 | $ | 9 | $ | 1,193 | ||||||
Inventories | $ | 1,053 | $ | (9 | ) | $ | 1,044 | |||||
Accrued expenses | $ | 598 | $ | (34 | ) | $ | 564 | |||||
Accumulated deficit | $ | (4,696 | ) | $ | 34 | $ | (4,662 | ) |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Balance, beginning of period | $ | 237 | $ | 233 | $ | 206 | ||||||
Warranties issued | 112 | 147 | 131 | |||||||||
Repairs and replacements | (99 | ) | (106 | ) | (114 | ) | ||||||
Changes in liability for pre-existing warranties, including expirations | (55 | ) | (37 | ) | 10 | |||||||
Balance, end of period | $ | 195 | $ | 237 | $ | 233 |
(Dollars in millions) | Useful Life in Years | June 28, 2019 | June 29, 2018 | |||||||
Land and land improvements | $ | 48 | $ | 55 | ||||||
Equipment | 3 – 5 | 7,726 | 7,472 | |||||||
Buildings and leasehold improvements | Up to 30 | 1,795 | 1,805 | |||||||
Construction in progress | 266 | 193 | ||||||||
9,835 | 9,525 | |||||||||
Less: accumulated depreciation and amortization | (7,966 | ) | (7,733 | ) | ||||||
Property, equipment and leasehold improvements, net | $ | 1,869 | $ | 1,792 |
December 2017 Plan | July 2017 Plan | March 2017 Plan | July 2016 Plan | Other Plans | ||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Workforce Reduction Costs | Facilities and Other Exit Costs | Workforce Reduction Costs | Facilities and Other Exit Costs | Workforce Reduction Costs | Facilities and Other Exit Costs | Workforce Reduction Costs | Facilities and Other Exit Costs | Workforce Reduction Costs | Facilities and Other Exit Costs | Total | |||||||||||||||||||||||||||||||||
Accrual balances at July 1, 2016 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 50 | $ | 13 | $ | 63 | ||||||||||||||||||||||
Restructuring charges | — | — | — | — | 28 | 3 | 72 | 20 | 31 | 13 | 167 | |||||||||||||||||||||||||||||||||
Cash payments | — | — | — | — | (29 | ) | (3 | ) | (57 | ) | (18 | ) | (74 | ) | (17 | ) | (198 | ) | ||||||||||||||||||||||||||
Adjustments | — | — | — | — | 1 | — | 7 | — | (1 | ) | 4 | 11 | ||||||||||||||||||||||||||||||||
Accrual balances at June 30, 2017 | — | — | — | — | — | — | 22 | 2 | 6 | 13 | 43 | |||||||||||||||||||||||||||||||||
Restructuring charges | 28 | 6 | 38 | 4 | — | — | 1 | 15 | 13 | — | 105 | |||||||||||||||||||||||||||||||||
Cash payments | (21 | ) | (2 | ) | (37 | ) | (3 | ) | (1 | ) | — | (23 | ) | (16 | ) | (9 | ) | (3 | ) | (115 | ) | |||||||||||||||||||||||
Adjustments | (2 | ) | — | (1 | ) | — | 2 | — | 2 | (1 | ) | 1 | 8 | 9 | ||||||||||||||||||||||||||||||
Accrual balances at June 29, 2018 | 5 | 4 | — | 1 | 1 | — | 2 | — | 11 | 18 | 42 | |||||||||||||||||||||||||||||||||
Restructuring charges | — | 3 | — | — | — | — | — | 6 | 41 | 4 | 54 | |||||||||||||||||||||||||||||||||
Cash payments | (5 | ) | (5 | ) | — | — | (1 | ) | — | (1 | ) | (6 | ) | (41 | ) | (6 | ) | (65 | ) | |||||||||||||||||||||||||
Adjustments | — | (1 | ) | — | (1 | ) | — | — | (1 | ) | — | 2 | — | (1 | ) | |||||||||||||||||||||||||||||
Accrual balances at June 28, 2019 | — | 1 | — | — | — | — | — | — | 13 | 16 | 30 | |||||||||||||||||||||||||||||||||
Total costs incurred to date as of June 28, 2019 | $ | 26 | $ | 8 | $ | 37 | $ | 3 | $ | 31 | $ | 3 | $ | 81 | $ | 40 | $ | 283 | $ | 63 | $ | 575 | ||||||||||||||||||||||
Total expected costs to be incurred as of June 28, 2019 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | 1 |
Fiscal Years Ended | ||||||||||||
(Dollars in million) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Revenues by Channel | ||||||||||||
OEMs | $ | 7,261 | $ | 7,863 | $ | 7,478 | ||||||
Distributors | 1,780 | 1,906 | 1,866 | |||||||||
Retailers | 1,349 | 1,415 | 1,427 | |||||||||
Total | $ | 10,390 | $ | 11,184 | $ | 10,771 | ||||||
Revenues by Geography(1) | ||||||||||||
Americas | $ | 3,310 | $ | 3,719 | $ | 3,531 | ||||||
EMEA | 1,965 | 1,983 | 2,119 | |||||||||
Asia Pacific | 5,115 | 5,482 | 5,121 | |||||||||
Total | $ | 10,390 | $ | 11,184 | $ | 10,771 |
(Dollars in millions) | June 28, 2019 | June 29, 2018 | ||||||
Accounts receivable | $ | 993 | $ | 1,188 | ||||
Allowances for doubtful accounts | (4 | ) | (4 | ) | ||||
Account receivable, net | $ | 989 | $ | 1,184 |
(Dollars in millions) | June 28, 2019 | June 29, 2018 | ||||||
Dividends payable | $ | 170 | $ | 181 | ||||
Other accrued expenses | 382 | 417 | ||||||
Total | $ | 552 | $ | 598 |
(Dollars in millions) | Unrealized Gains/(Losses) on Cash Flow Hedges | Unrealized Gains/(Losses) on Available-for-Sale Debt Securities | Unrealized Gains/(Losses) on Post- Retirement Plans | Foreign Currency Translation Adjustments | Total | |||||||||||||||
Balance at June 30, 2017 | $ | — | $ | — | $ | (5 | ) | $ | (12 | ) | $ | (17 | ) | |||||||
Other comprehensive income (loss) before reclassifications | — | — | 1 | — | 1 | |||||||||||||||
Amounts reclassified from AOCI | — | — | — | — | — | |||||||||||||||
Other comprehensive income (loss) | — | — | 1 | — | 1 | |||||||||||||||
Balance at June 29, 2018 | — | — | (4 | ) | (12 | ) | (16 | ) | ||||||||||||
Other comprehensive income (loss) before reclassifications | — | — | (16 | ) | (2 | ) | (18 | ) | ||||||||||||
Amounts reclassified from AOCI | — | — | — | — | — | |||||||||||||||
Other comprehensive income (loss) | — | — | (16 | ) | (2 | ) | (18 | ) | ||||||||||||
Balance at June 28, 2019 | $ | — | $ | — | $ | (20 | ) | $ | (14 | ) | $ | (34 | ) |
(Dollars in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Useful Life | ||||||||||
Existing technology | $ | 201 | $ | (143 | ) | $ | 58 | 1.9 years | ||||||
Customer relationships | 71 | (38 | ) | 33 | 3.3 years | |||||||||
Trade name | 3 | (2 | ) | 1 | 1.2 years | |||||||||
Other intangible assets | 41 | (22 | ) | 19 | 2.9 years | |||||||||
Total amortizable other intangible assets | $ | 316 | $ | (205 | ) | $ | 111 | 2.5 years |
(Dollars in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Remaining Useful Life | ||||||||||
Existing technology | $ | 256 | $ | (145 | ) | $ | 111 | 2.5 years | ||||||
Customer relationships | 89 | (42 | ) | 47 | 4.0 years | |||||||||
Trade name | 17 | (13 | ) | 4 | 1.3 years | |||||||||
Other intangible assets | 45 | (19 | ) | 26 | 3.0 years | |||||||||
Total amortizable other intangible assets | $ | 407 | $ | (219 | ) | $ | 188 | 2.9 years |
Fiscal Years Ended | |||||||||
(In millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | ||||||
Employee equity award plans | — | 1 | 1 |
June 28, 2019 | June 29, 2018 | |||||||||||||||
(Dollars in millions) | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
3.75% Senior Notes due November 2018 | $ | — | $ | — | $ | 499 | $ | 501 | ||||||||
4.250% Senior Notes due March 2022 | 749 | 763 | 749 | 743 | ||||||||||||
4.75% Senior Notes due June 2023 | 941 | 973 | 951 | 942 | ||||||||||||
4.875% Senior Notes due March 2024 | 498 | 514 | 497 | 489 | ||||||||||||
4.75% Senior Notes due January 2025 | 920 | 929 | 975 | 936 | ||||||||||||
4.875% Senior Notes due June 2027 | 689 | 688 | 695 | 650 | ||||||||||||
5.75% Senior Notes due December 2034 | 489 | 482 | 489 | 441 | ||||||||||||
$ | 4,286 | $ | 4,349 | $ | 4,855 | $ | 4,702 | |||||||||
Less: debt issuance costs | (33 | ) | — | (36 | ) | — | ||||||||||
Long-term debt, net of debt issuance costs | $ | 4,253 | $ | 4,349 | $ | 4,819 | $ | 4,702 | ||||||||
Less: current portion of long-term debt, net of debt issuance costs | — | — | (499 | ) | (501 | ) | ||||||||||
Long-term debt, less current portion | $ | 4,253 | $ | 4,349 | $ | 4,320 | $ | 4,201 |
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | July 1, 2016 | ||||||||||||
Cash and cash equivalents | $ | 2,220 | $ | 1,853 | $ | 2,539 | $ | 1,125 | ||||||||
Restricted cash included in Other current assets | 31 | 4 | 4 | 7 | ||||||||||||
Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows | $ | 2,251 | $ | 1,857 | $ | 2,543 | $ | 1,132 |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Current income tax expense: | ||||||||||||
U.S. Federal | $ | — | $ | — | $ | — | ||||||
U.S. State | — | 5 | 1 | |||||||||
Non-U.S. | 45 | 38 | 39 | |||||||||
Total Current | 45 | 43 | 40 | |||||||||
Deferred income tax (benefit) expense: | ||||||||||||
U.S. Federal | (690 | ) | 201 | (5 | ) | |||||||
U.S. State | 12 | — | — | |||||||||
Non-U.S. | (7 | ) | (8 | ) | 8 | |||||||
Total Deferred | (685 | ) | 193 | 3 | ||||||||
(Benefit) provision for income taxes | $ | (640 | ) | $ | 236 | $ | 43 |
Fiscal Years Ended | ||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | ||||||
Deferred tax assets | ||||||||
Accrued warranty | $ | 46 | $ | 55 | ||||
Inventory carrying value adjustments | 34 | 30 | ||||||
Receivable allowances | 10 | 13 | ||||||
Accrued compensation and benefits | 53 | 64 | ||||||
Depreciation | 89 | 96 | ||||||
Restructuring accruals | 4 | 5 | ||||||
Other accruals and deferred items | 15 | 34 | ||||||
Net operating losses | 743 | 812 | ||||||
Tax credit carryforwards | 582 | 549 | ||||||
Other assets | 7 | 10 | ||||||
Gross: Deferred tax assets | 1,583 | 1,668 | ||||||
Less: Valuation allowance | (460 | ) | (1,221 | ) | ||||
Net: Deferred tax assets | 1,123 | 447 | ||||||
Deferred tax liabilities | ||||||||
Unremitted earnings of certain non-U.S. entities | (16 | ) | (7 | ) | ||||
Acquisition-related items | (13 | ) | (30 | ) | ||||
Net: Deferred tax liabilities | (29 | ) | (37 | ) | ||||
Total net deferred tax assets | $ | 1,094 | $ | 410 |
Derivatives Not Designated as Hedging Instruments | Location of Gain/(Loss) Recognized in Income on Derivatives | Amount of Gain/(Loss) Recognized in Income on Derivatives | ||||
Foreign currency forward exchange contracts | Other, net | $ | 20 | |||
Total return swap | Operating expenses | $ | 3 |
Derivatives Not Designated as Hedging Instruments | Location of Gain/(Loss) Recognized in Income on Derivatives | Amount of Gain/(Loss) Recognized in Income on Derivatives | ||||
Foreign currency forward exchange contracts | Other, net | $ | 10 | |||
Total return swap | Operating expenses | $ | 6 |
As of June 28, 2019 | ||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||
(Dollars in millions) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | — | Accrued expenses | $ | — | ||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign currency forward exchange contracts | Other current assets | 1 | Accrued expenses | (1 | ) | |||||||
Total return swap | Other current assets | — | Accrued expenses | — | ||||||||
Total derivatives | $ | 1 | $ | (1 | ) |
As of June 29, 2018 | ||||||||||||
Derivative Assets | Derivative Liabilities | |||||||||||
(Dollars in millions) | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Foreign currency forward exchange contracts | Other current assets | $ | — | Accrued expenses | $ | — | ||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Foreign currency forward exchange contracts | Other current assets | 10 | Accrued expenses | — | ||||||||
Total return swap | Other current assets | — | Accrued expenses | — | ||||||||
Total derivatives | $ | 10 | $ | — |
Fiscal Years Ended | ||||||||||||
(In millions, except per share data) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Numerator: | ||||||||||||
Net income | $ | 2,012 | $ | 1,182 | $ | 772 | ||||||
Number of shares used in per share calculations: | ||||||||||||
Total shares for purposes of calculating basic net income per share | 282 | 288 | 296 | |||||||||
Weighted-average effect of dilutive securities: | ||||||||||||
Employee equity award plans | 3 | 4 | 3 | |||||||||
Total shares for purposes of calculating diluted net income per share | 285 | 292 | 299 | |||||||||
Net income per share | ||||||||||||
Basic | $ | 7.13 | $ | 4.10 | $ | 2.61 | ||||||
Diluted | $ | 7.06 | $ | 4.05 | $ | 2.58 |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Provision at statutory rate | $ | 343 | $ | 355 | $ | 204 | ||||||
Permanent differences | 3 | (2 | ) | 19 | ||||||||
Effect of U.S. corporate tax rate change | — | 524 | — | |||||||||
Valuation allowance | (742 | ) | (297 | ) | 2 | |||||||
Non-U.S. losses with no tax benefits | — | — | 17 | |||||||||
Earnings taxed at other than statutory rate | (234 | ) | (317 | ) | (185 | ) | ||||||
Research credit | (38 | ) | (25 | ) | (14 | ) | ||||||
Tax expense (benefit) related to intercompany transactions | 23 | — | (2 | ) | ||||||||
Other individually immaterial items | 5 | (2 | ) | 2 | ||||||||
(Benefit) provision for income taxes | $ | (640 | ) | $ | 236 | $ | 43 |
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 | $ | 620 | $ | — | $ | — | $ | 620 | ||||||||
Time deposits and certificates of deposit | — | 392 | — | 392 | ||||||||||||
Total cash equivalents | 620 | 392 | — | 1,012 | ||||||||||||
Restricted cash and investments: | ||||||||||||||||
Money market funds | 1 | — | — | 1 | ||||||||||||
Time deposits and certificates of deposit | — | 3 | — | 3 | ||||||||||||
Derivative assets | — | 10 | — | 10 | ||||||||||||
Total assets | $ | 621 | $ | 405 | $ | — | $ | 1,026 |
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 | $ | 620 | $ | 392 | $ | — | $ | 1,012 | |||||||||
Other current assets | 1 | 13 | — | 14 | |||||||||||||
Total assets | $ | 621 | $ | 405 | $ | — | — | $ | 1,026 |
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 | $ | 416 | $ | — | $ | — | $ | 416 | |||||||||
Time deposits and certificates of deposit | — | 132 | — | 132 | |||||||||||||
Total cash equivalents | 416 | 132 | — | 548 | |||||||||||||
Restricted cash and investments: | |||||||||||||||||
Money market funds | 1 | — | — | 1 | |||||||||||||
Time deposits and certificates of deposit | — | 1 | — | 1 | |||||||||||||
Other debt securities | — | — | 7 | 7 | 7 | ||||||||||||
Derivative assets | — | 1 | — | 1 | |||||||||||||
Total assets | $ | 417 | $ | 134 | $ | 7 | $ | 558 | |||||||||
Liabilities: | |||||||||||||||||
Derivative liabilities | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||
Total liabilities | $ | — | $ | 1 | $ | — | $ | 1 |
(Dollars in millions) | Amount | ||
As of June 30, 2017 | $ | 1,238 | |
Goodwill acquired | — | ||
Goodwill disposed | (1 | ) | |
Foreign currency translation effect | — | ||
As of June 29, 2018 | $ | 1,237 | |
Goodwill acquired | — | ||
Goodwill disposed | — | ||
Foreign currency translation effect | — | ||
As of June 28, 2019 | $ | 1,237 |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
U.S. | $ | 275 | $ | (29 | ) | $ | (22 | ) | ||||
Non-U.S. | 1,097 | 1,447 | 837 | |||||||||
$ | 1,372 | $ | 1,418 | $ | 815 |
(Dollars in millions) | June 28, 2019 | June 29, 2018 | ||||||
Raw materials and components | $ | 336 | $ | 329 | ||||
Work-in-process | 217 | 347 | ||||||
Finished goods | 417 | 377 | ||||||
Total inventories | $ | 970 | $ | 1,053 |
Fiscal Year | Amount | |||
2020 | $ | — | ||
2021 | — | |||
2022 | 750 | |||
2023 | 941 | |||
2024 | 500 | |||
Thereafter | 2,100 | |||
Total | $ | 4,291 |
(Dollars in millions) | As of June 29, 2018 | Effect of adoption of ASC 606 | As of June 30, 2018 | |||||||||
Accounts receivable, net | $ | 1,184 | $ | 9 | $ | 1,193 | ||||||
Inventories | $ | 1,053 | $ | (9 | ) | $ | 1,044 | |||||
Accrued expenses | $ | 598 | $ | (34 | ) | $ | 564 | |||||
Accumulated deficit | $ | (4,696 | ) | $ | 34 | $ | (4,662 | ) |
Performance Awards | Number of Shares | Weighted- Average Grant- Date Fair Value | |||||
(In millions) | |||||||
Performance units at June 29, 2018 | 1.2 | $ | 33.34 | ||||
Granted | 0.5 | $ | 45.74 | ||||
Forfeitures | (0.4 | ) | $ | 27.11 | |||
Vested | (0.3 | ) | $ | 43.85 | |||
Performance units at June 28, 2019 | 1.0 | $ | 43.81 |
Nonvested Awards | Number of Shares | Weighted- Average Grant- Date Fair Value | |||||
(In millions) | |||||||
Nonvested at June 29, 2018 | 5.2 | $ | 30.74 | ||||
Granted | 2.5 | $ | 44.37 | ||||
Forfeitures | (0.6 | ) | $ | 33.45 | |||
Vested | (1.7 | ) | $ | 32.72 | |||
Nonvested at June 28, 2019 | 5.4 | $ | 36.01 |
As of June 28, 2019 | ||||||||
(Dollars in millions) | Contracts Designated as Hedges | Contracts Not Designated as Hedges | ||||||
Singapore Dollar | $ | 60 | $ | 40 | ||||
Chinese Renminbi | 79 | 20 | ||||||
British Pound Sterling | 6 | 12 | ||||||
$ | 145 | $ | 72 |
As of June 29, 2018 | ||||||||
(Dollars in millions) | Contracts Designated as Hedges | Contracts Not Designated as Hedges | ||||||
Japanese Yen (a) | $ | 66 | $ | 1,310 |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Balance, beginning of period | $ | 237 | $ | 233 | $ | 206 | ||||||
Warranties issued | 112 | 147 | 131 | |||||||||
Repairs and replacements | (99 | ) | (106 | ) | (114 | ) | ||||||
Changes in liability for pre-existing warranties, including expirations | (55 | ) | (37 | ) | 10 | |||||||
Balance, end of period | $ | 195 | $ | 237 | $ | 233 |
(In millions) | Number of Shares Repurchased | Dollar Value of Shares Repurchased | |||||
Cumulative repurchased through July 1, 2016 | 328 | $ | 9,631 | ||||
Repurchased in fiscal year 2017(a) | 13 | 487 | |||||
Cumulative repurchased through June 30, 2017 | 341 | 10,118 | |||||
Repurchased in fiscal year 2018(a) | 11 | 384 | |||||
Cumulative repurchased through June 29, 2018 | 352 | 10,502 | |||||
Repurchased in fiscal year 2019(a) | 22 | 997 | |||||
Cumulative repurchased through June 28, 2019 | 374 | $ | 11,499 |
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | July 1, 2016 | ||||||||||||
Cash and cash equivalents | $ | 2,220 | $ | 1,853 | $ | 2,539 | $ | 1,125 | ||||||||
Restricted cash included in Other current assets | 31 | 4 | 4 | 7 | ||||||||||||
Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows | $ | 2,251 | $ | 1,857 | $ | 2,543 | $ | 1,132 |
December 2017 Plan | July 2017 Plan | March 2017 Plan | July 2016 Plan | Other Plans | ||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Workforce Reduction Costs | Facilities and Other Exit Costs | Workforce Reduction Costs | Facilities and Other Exit Costs | Workforce Reduction Costs | Facilities and Other Exit Costs | Workforce Reduction Costs | Facilities and Other Exit Costs | Workforce Reduction Costs | Facilities and Other Exit Costs | Total | |||||||||||||||||||||||||||||||||
Accrual balances at July 1, 2016 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 50 | $ | 13 | $ | 63 | ||||||||||||||||||||||
Restructuring charges | — | — | — | — | 28 | 3 | 72 | 20 | 31 | 13 | 167 | |||||||||||||||||||||||||||||||||
Cash payments | — | — | — | — | (29 | ) | (3 | ) | (57 | ) | (18 | ) | (74 | ) | (17 | ) | (198 | ) | ||||||||||||||||||||||||||
Adjustments | — | — | — | — | 1 | — | 7 | — | (1 | ) | 4 | 11 | ||||||||||||||||||||||||||||||||
Accrual balances at June 30, 2017 | — | — | — | — | — | — | 22 | 2 | 6 | 13 | 43 | |||||||||||||||||||||||||||||||||
Restructuring charges | 28 | 6 | 38 | 4 | — | — | 1 | 15 | 13 | — | 105 | |||||||||||||||||||||||||||||||||
Cash payments | (21 | ) | (2 | ) | (37 | ) | (3 | ) | (1 | ) | — | (23 | ) | (16 | ) | (9 | ) | (3 | ) | (115 | ) | |||||||||||||||||||||||
Adjustments | (2 | ) | — | (1 | ) | — | 2 | — | 2 | (1 | ) | 1 | 8 | 9 | ||||||||||||||||||||||||||||||
Accrual balances at June 29, 2018 | 5 | 4 | — | 1 | 1 | — | 2 | — | 11 | 18 | 42 | |||||||||||||||||||||||||||||||||
Restructuring charges | — | 3 | — | — | — | — | — | 6 | 41 | 4 | 54 | |||||||||||||||||||||||||||||||||
Cash payments | (5 | ) | (5 | ) | — | — | (1 | ) | — | (1 | ) | (6 | ) | (41 | ) | (6 | ) | (65 | ) | |||||||||||||||||||||||||
Adjustments | — | (1 | ) | — | (1 | ) | — | — | (1 | ) | — | 2 | — | (1 | ) | |||||||||||||||||||||||||||||
Accrual balances at June 28, 2019 | — | 1 | — | — | — | — | — | — | 13 | 16 | 30 | |||||||||||||||||||||||||||||||||
Total costs incurred to date as of June 28, 2019 | $ | 26 | $ | 8 | $ | 37 | $ | 3 | $ | 31 | $ | 3 | $ | 81 | $ | 40 | $ | 283 | $ | 63 | $ | 575 | ||||||||||||||||||||||
Total expected costs to be incurred as of June 28, 2019 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | 1 |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Revenue from external customers (a): | ||||||||||||
Singapore | $ | 5,085 | $ | 5,445 | $ | 5,070 | ||||||
United States | 3,310 | 3,719 | 3,535 | |||||||||
The Netherlands | 1,630 | 1,598 | 1,501 | |||||||||
Other | 365 | 422 | 665 | |||||||||
Consolidated | $ | 10,390 | $ | 11,184 | $ | 10,771 | ||||||
Long-lived assets: | ||||||||||||
Thailand | $ | 558 | $ | 426 | $ | 414 | ||||||
Singapore | 556 | 600 | 570 | |||||||||
United States | 523 | 565 | 643 | |||||||||
China | 62 | 45 | 58 | |||||||||
Other | 224 | 212 | 248 | |||||||||
Consolidated | $ | 1,923 | $ | 1,848 | $ | 1,933 |
(a) | Revenue is attributed to countries based on the bill from location. |
Options | Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||
(In millions) | (In years) | (Dollars in millions) | |||||||||
Outstanding at June 29, 2018 | 4.0 | $ | 39.00 | 5.0 | $72 | ||||||
Granted | 0.4 | $ | 48.99 | ||||||||
Exercised | (0.4 | ) | $ | 33.55 | |||||||
Forfeitures | (0.5 | ) | $ | 35.71 | |||||||
Expirations | — | $ | — | ||||||||
Outstanding at June 28, 2019 | 3.5 | $ | 41.04 | 4.2 | $29 | ||||||
Vested and expected to vest at June 28, 2019 | 3.4 | $ | 41.06 | 4.2 | $29 | ||||||
Exercisable at June 28, 2019 | 2.1 | $ | 42.11 | 3.6 | $16 |
(Dollars in millions) | Amount | |||
2020 | $ | 54 | ||
2021 | 29 | |||
2022 | 20 | |||
2023 | 8 | |||
2024 | — | |||
Thereafter | — | |||
Total | $ | 111 |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Revenue from external customers (a): | ||||||||||||
Singapore | $ | 5,085 | $ | 5,445 | $ | 5,070 | ||||||
United States | 3,310 | 3,719 | 3,535 | |||||||||
The Netherlands | 1,630 | 1,598 | 1,501 | |||||||||
Other | 365 | 422 | 665 | |||||||||
Consolidated | $ | 10,390 | $ | 11,184 | $ | 10,771 | ||||||
Long-lived assets: | ||||||||||||
Thailand | $ | 558 | $ | 426 | $ | 414 | ||||||
Singapore | 556 | 600 | 570 | |||||||||
United States | 523 | 565 | 643 | |||||||||
China | 62 | 45 | 58 | |||||||||
Other | 224 | 212 | 248 | |||||||||
Consolidated | $ | 1,923 | $ | 1,848 | $ | 1,933 |
(a) | Revenue is attributed to countries based on the bill from location. |
(In millions) | Number of Shares Repurchased | Dollar Value of Shares Repurchased | |||||
Cumulative repurchased through July 1, 2016 | 328 | $ | 9,631 | ||||
Repurchased in fiscal year 2017(a) | 13 | 487 | |||||
Cumulative repurchased through June 30, 2017 | 341 | 10,118 | |||||
Repurchased in fiscal year 2018(a) | 11 | 384 | |||||
Cumulative repurchased through June 29, 2018 | 352 | 10,502 | |||||
Repurchased in fiscal year 2019(a) | 22 | 997 | |||||
Cumulative repurchased through June 28, 2019 | 374 | $ | 11,499 |
Fiscal Years Ended | ||||||||||||
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | |||||||||
Balance of unrecognized tax benefits at the beginning of the year | $ | 60 | $ | 74 | $ | 76 | ||||||
Gross increase for tax positions of prior years | 22 | 2 | 2 | |||||||||
Gross decrease for tax positions of prior years | (9 | ) | (3 | ) | (7 | ) | ||||||
Gross increase for tax positions of current year | 16 | 7 | 16 | |||||||||
Gross decrease for tax positions of current year | — | — | — | |||||||||
Settlements | — | — | — | |||||||||
Lapse of statutes of limitation | (6 | ) | (20 | ) | (13 | ) | ||||||
Non-U.S. exchange gain | — | — | — | |||||||||
Balance of unrecognized tax benefits at the end of the year | $ | 83 | $ | 60 | $ | 74 |
(Dollars in millions) | Amortized Cost | Unrealized Gain/(Loss) | Fair Value | |||||||||
Available-for-sale debt securities: | ||||||||||||
Money market funds | $ | 417 | $ | — | $ | 417 | ||||||
Time deposits and certificates of deposit | 133 | — | 133 | |||||||||
Other debt securities | 7 | — | 7 | |||||||||
Total | $ | 557 | $ | — | $ | 557 | ||||||
Included in Cash and cash equivalents | $ | 548 | ||||||||||
Included in Other current assets | 2 | |||||||||||
Included in Other assets, net | 7 | |||||||||||
Total | $ | 557 |
(Dollars in millions) | Amortized Cost | Fair Value | ||||||
Due in less than 1 year | $ | 550 | $ | 550 | ||||
Due in 1 to 5 years | 3 | 3 | ||||||
Due in 6 to 10 years | — | — | ||||||
Thereafter | 4 | 4 | ||||||
Total | $ | 557 | $ | 557 |
(Dollars in millions) | Amortized Cost | Unrealized Gain/(Loss) | Fair Value | |||||||||
Available-for-sale securities: | ||||||||||||
Money market funds | $ | 621 | $ | — | $ | 621 | ||||||
Time deposits and certificates of deposits | 395 | — | 395 | |||||||||
Total | $ | 1,016 | $ | — | $ | 1,016 | ||||||
Included in Cash and cash equivalents | $ | 1,012 | ||||||||||
Included in Other current assets | 4 | |||||||||||
Total | $ | 1,016 |
(Dollars in millions) | June 28, 2019 | June 29, 2018 | June 30, 2017 | July 1, 2016 | ||||||||||||
Cash and cash equivalents | $ | 2,220 | $ | 1,853 | $ | 2,539 | $ | 1,125 | ||||||||
Restricted cash included in Other current assets | 31 | 4 | 4 | 7 | ||||||||||||
Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows | $ | 2,251 | $ | 1,857 | $ | 2,543 | $ | 1,132 |
(Dollars in millions) | June 28, 2019 | June 29, 2018 | ||||||
Accounts receivable | $ | 993 | $ | 1,188 | ||||
Allowances for doubtful accounts | (4 | ) | (4 | ) | ||||
Account receivable, net | $ | 989 | $ | 1,184 |
(Dollars in millions) | Balance at Beginning of Period | Charges (Credit) to Operations | Deductions (a) | Balance at End of Period | ||||||||||
Fiscal year ended June 30, 2017 | $ | 9 | (4 | ) | — | $ | 5 | |||||||
Fiscal year ended June 29, 2018 | $ | 5 | — | (1 | ) | $ | 4 | |||||||
Fiscal year ended June 28, 2019 | $ | 4 | — | — | $ | 4 |
(Dollars in millions) | June 28, 2019 | June 29, 2018 | ||||||
Raw materials and components | $ | 336 | $ | 329 | ||||
Work-in-process | 217 | 347 | ||||||
Finished goods | 417 | 377 | ||||||
Total inventories | $ | 970 | $ | 1,053 |
(Dollars in millions) | Useful Life in Years | June 28, 2019 | June 29, 2018 | |||||||
Land and land improvements | $ | 48 | $ | 55 | ||||||
Equipment | 3 – 5 | 7,726 | 7,472 | |||||||
Buildings and leasehold improvements | Up to 30 | 1,795 | 1,805 | |||||||
Construction in progress | 266 | 193 | ||||||||
9,835 | 9,525 | |||||||||
Less: accumulated depreciation and amortization | (7,966 | ) | (7,733 | ) | ||||||
Property, equipment and leasehold improvements, net | $ | 1,869 | $ | 1,792 |
(Dollars in millions) | June 28, 2019 | June 29, 2018 | ||||||
Dividends payable | $ | 170 | $ | 181 | ||||
Other accrued expenses | 382 | 417 | ||||||
Total | $ | 552 | $ | 598 |
(Dollars in millions) | Unrealized Gains/(Losses) on Cash Flow Hedges | Unrealized Gains/(Losses) on Available-for-Sale Debt Securities | Unrealized Gains/(Losses) on Post- Retirement Plans | Foreign Currency Translation Adjustments | Total | |||||||||||||||
Balance at June 30, 2017 | $ | — | $ | — | $ | (5 | ) | $ | (12 | ) | $ | (17 | ) | |||||||
Other comprehensive income (loss) before reclassifications | — | — | 1 | — | 1 | |||||||||||||||
Amounts reclassified from AOCI | — | — | — | — | — | |||||||||||||||
Other comprehensive income (loss) | — | — | 1 | — | 1 | |||||||||||||||
Balance at June 29, 2018 | — | — | (4 | ) | (12 | ) | (16 | ) | ||||||||||||
Other comprehensive income (loss) before reclassifications | — | — | (16 | ) | (2 | ) | (18 | ) | ||||||||||||
Amounts reclassified from AOCI | — | — | — | — | — | |||||||||||||||
Other comprehensive income (loss) | — | — | (16 | ) | (2 | ) | (18 | ) | ||||||||||||
Balance at June 28, 2019 | $ | — | $ | — | $ | (20 | ) | $ | (14 | ) | $ | (34 | ) |