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Employee Termination, Asset Impairment and Other Charges | 12 Months Ended
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Jun. 29, 2018
Postemployment Benefits [Abstract] |
Employee Termination, Asset Impairment and Other Charges | Employee Termination, Asset Impairment and Other Charges The Company recorded the following charges related to employee terminations benefits, asset impairment, and other charges:
| 2018 |  | 2017 |  | 2016
| (in millions)
Employee termination and other charges: |  |  |  |  |
Restructuring Plan 2016 | $ | 92 |  |  | $ | 128 |  |  | $ | 77 |
Closure of Foreign Manufacturing Facilities | 56 |  |  | 10 |  |  | 128 |
Business Realignment | 50 |  |  | 72 |  |  | 94 |
Total employee termination and other charges | 198 |  |  | 210 |  |  | 299 |
Stock-based compensation accelerations and adjustments |  |  |  |  |
Business Realignment | 1 |  |  | 11 |  |  | 9 |
Total stock-based compensation accelerations and adjustments | 1 |  |  | 11 |  |  | 9 |
Asset impairment: |  |  |  |  |
Restructuring Plan 2016 | 16 |  |  | — |  |  | 5 |
Closure of Foreign Manufacturing Facility | — |  |  | 11 |  |  | 24 |
Business Realignment | — |  |  | — |  |  | 8 |
Total asset impairment | 16 |  |  | 11 |  |  | 37 |
Total employee termination and other charges, and stock-based compensation accelerations and adjustments | $ | 215 |  |  | $ | 232 |  |  | $ | 345 |
Restructuring Plan 2016 In 2016, the Company initiated a set of actions relating to the restructuring plan associated with the integration of substantial portions of its HGST and WD subsidiaries (“Restructuring Plan 2016”). Restructuring Plan 2016 consists of asset and footprint reduction, product road map consolidation and organization rationalization. In addition to the amounts recognized under Restructuring Plan 2016 as presented above, the Company recognized $9 million and $65 million of accelerated depreciation on facility assets in cost of revenue during the year ended June 29, 2018 and June 30, 2017, respectively. The following table presents an analysis of the components of the activity against the reserve during the year ended June 29, 2018:
| Employee Termination Benefits |  | Contract Termination and Other |  | Total
| (in millions)
Accrual balance at June 30, 2017 | $ | 11 |  |  | $ | 2 |  |  | $ | 13 |
Charges | 68 |  |  | 24 |  |  | 92 |
Cash payments | (74 | ) |  | (23 | ) |  | (97 | )
Non-cash items and other | — |  |  | (1 | ) |  | (1 | )
Accrual balance at June 29, 2018 | $ | 5 |  |  | $ | 2 |  |  | $ | 7 |
Closure of Foreign Manufacturing Facilities In July 2018, the Company announced the closing of its HDD manufacturing facility in Kuala Lumpur, Malaysia, in order to reduce its manufacturing costs and consolidate HDD operations into Thailand. The Company expects the closure to be substantially completed by the end of the calendar year 2019 and to result in total pre-tax charges of approximately $160 million. These charges are expected to consist of approximately $85 million in employee termination benefits and $75 million in asset-related, contract termination and other charges. During the year ended June 29, 2018, the Company recognized $56 million in employee termination benefits within Employee termination, asset impairment and other charges in the Consolidated Statements of Operations. The following table presents an analysis of the components of the restructuring charges, payments and adjustments made against the reserve as of June 29, 2018:
| Employee Termination Benefits
| (in millions)
Accrual balance at June 30, 2017 | $ | — |
Charges | 56 |
Accrual balance at June 29, 2018 | $ | 56 |
The Company incurred charges of $10 million and $128 million in 2017 and 2016, respectively, related to the closure of its head component front end wafer manufacturing facility in Odawara, Japan. As of June 29, 2018, the Company had completed all activities related to the closure of the facility. Business Realignment The Company periodically incurs charges as part of the integration process of recent acquisitions and to realign its operations with anticipated market demand. The following table presents an analysis of the components of the activity against the reserve:
| Employee Termination Benefits |  | Contract Termination and Other |  | Total
| (in millions)
Accrual balance at June 30, 2017 | $ | 18 |  |  | $ | 5 |  |  | $ | 23 |
Charges | 43 |  |  | 7 |  |  | 50 |
Cash payments | (29 | ) |  | (6 | ) |  | (35 | )
Non-cash items and other | (1 | ) |  | (1 | ) |  | (2 | )
Accrual balance at June 29, 2018 | $ | 31 |  |  | $ | 5 |  |  | $ | 36 |

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