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Separate Financial Information of Guarantor Subsidiaries (Tables) | 3 Months Ended
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Sep. 28, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
Condensed Balance Sheet |
Condensed Consolidating Balance Sheet
As of September 28, 2018
| Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Total Company
| (in millions)
ASSETS
Current assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 5 |  |  | $ | 1,061 |  |  | $ | 3,580 |  |  | $ | — |  |  | $ | 4,646 |
Accounts receivable, net | — |  |  | 1,326 |  |  | 893 |  |  | — |  |  | 2,219 |
Intercompany receivables | 2,344 |  |  | 4,306 |  |  | 2,142 |  |  | (8,792 | ) |  | — |
Inventories | — |  |  | 991 |  |  | 2,302 |  |  | (174 | ) |  | 3,119 |
Other current assets | 27 |  |  | 243 |  |  | 317 |  |  | — |  |  | 587 |
Total current assets | 2,376 |  |  | 7,927 |  |  | 9,234 |  |  | (8,966 | ) |  | 10,571 |
Property, plant and equipment, net | — |  |  | 1,072 |  |  | 1,982 |  |  | — |  |  | 3,054 |
Notes receivable and investments in Flash Ventures | — |  |  | — |  |  | 2,028 |  |  | — |  |  | 2,028 |
Goodwill | — |  |  | 387 |  |  | 9,685 |  |  | — |  |  | 10,072 |
Other intangible assets, net | — |  |  | 35 |  |  | 2,369 |  |  | — |  |  | 2,404 |
Investments in consolidated subsidiaries | 21,369 |  |  | 18,981 |  |  | — |  |  | (40,350 | ) |  | — |
Loans due from consolidated affiliates | 247 |  |  | 16 |  |  | — |  |  | (263 | ) |  | — |
Other non-current assets | 59 |  |  | 45 |  |  | 472 |  |  | — |  |  | 576 |
Total assets | $ | 24,051 |  |  | $ | 28,463 |  |  | $ | 25,770 |  |  | $ | (49,579 | ) |  | $ | 28,705 |
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities: |  |  |  |  |  |  |  |  |
Accounts payable | $ | — |  |  | $ | 193 |  |  | $ | 1,888 |  |  | $ | — |  |  | $ | 2,081 |
Accounts payable to related parties | — |  |  | — |  |  | 286 |  |  | — |  |  | 286 |
Intercompany payables | 1,382 |  |  | 4,159 |  |  | 3,251 |  |  | (8,792 | ) |  | — |
Accrued expenses | 162 |  |  | 561 |  |  | 582 |  |  | — |  |  | 1,305 |
Accrued compensation | — |  |  | 295 |  |  | 205 |  |  | — |  |  | 500 |
Current portion of long-term debt | 213 |  |  | — |  |  | — |  |  | — |  |  | 213 |
Total current liabilities | 1,757 |  |  | 5,208 |  |  | 6,212 |  |  | (8,792 | ) |  | 4,385 |
Long-term debt | 10,899 |  |  | — |  |  | 31 |  |  | — |  |  | 10,930 |
Loans due to consolidated affiliates | — |  |  | 247 |  |  | 16 |  |  | (263 | ) |  | — |
Other liabilities | 20 |  |  | 1,498 |  |  | 497 |  |  | — |  |  | 2,015 |
Total liabilities | 12,676 |  |  | 6,953 |  |  | 6,756 |  |  | (9,055 | ) |  | 17,330 |
Total shareholders’ equity | 11,375 |  |  | 21,510 |  |  | 19,014 |  |  | (40,524 | ) |  | 11,375 |
Total liabilities and shareholders’ equity | $ | 24,051 |  |  | $ | 28,463 |  |  | $ | 25,770 |  |  | $ | (49,579 | ) |  | $ | 28,705 |
Condensed Consolidating Balance Sheet
As of June 29, 2018
| Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Total Company
| (in millions)
ASSETS
Current assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 40 |  |  | $ | 668 |  |  | $ | 4,297 |  |  | $ | — |  |  | $ | 5,005 |
Accounts receivable, net | — |  |  | 1,358 |  |  | 839 |  |  | — |  |  | 2,197 |
Intercompany receivables | 1,903 |  |  | 4,256 |  |  | 2,674 |  |  | (8,833 | ) |  | — |
Inventories | — |  |  | 990 |  |  | 2,159 |  |  | (205 | ) |  | 2,944 |
Other current assets | 20 |  |  | 195 |  |  | 277 |  |  | — |  |  | 492 |
Total current assets | 1,963 |  |  | 7,467 |  |  | 10,246 |  |  | (9,038 | ) |  | 10,638 |
Property, plant and equipment, net | — |  |  | 1,092 |  |  | 2,003 |  |  | — |  |  | 3,095 |
Notes receivable and investments in Flash Ventures | — |  |  | — |  |  | 2,105 |  |  | — |  |  | 2,105 |
Goodwill | — |  |  | 387 |  |  | 9,688 |  |  | — |  |  | 10,075 |
Other intangible assets, net | — |  |  | 38 |  |  | 2,642 |  |  | — |  |  | 2,680 |
Investments in consolidated subsidiaries | 20,847 |  |  | 19,893 |  |  | — |  |  | (40,740 | ) |  | — |
Loans due from consolidated affiliates | 943 |  |  | 16 |  |  | — |  |  | (959 | ) |  | — |
Other non-current assets | 182 |  |  | 29 |  |  | 431 |  |  | — |  |  | 642 |
Total assets | $ | 23,935 |  |  | $ | 28,922 |  |  | $ | 27,115 |  |  | $ | (50,737 | ) |  | $ | 29,235 |
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities: |  |  |  |  |  |  |  |  |
Accounts payable | $ | — |  |  | $ | 279 |  |  | $ | 1,986 |  |  | $ | — |  |  | $ | 2,265 |
Accounts payable to related parties | — |  |  | — |  |  | 259 |  |  | — |  |  | 259 |
Intercompany payables | 1,066 |  |  | 4,648 |  |  | 3,119 |  |  | (8,833 | ) |  | — |
Accrued expenses | 198 |  |  | 505 |  |  | 571 |  |  | — |  |  | 1,274 |
Accrued compensation | — |  |  | 297 |  |  | 182 |  |  | — |  |  | 479 |
Current portion of long-term debt | 179 |  |  | — |  |  | — |  |  | — |  |  | 179 |
Total current liabilities | 1,443 |  |  | 5,729 |  |  | 6,117 |  |  | (8,833 | ) |  | 4,456 |
Long-term debt | 10,962 |  |  | — |  |  | 31 |  |  | — |  |  | 10,993 |
Loans due to consolidated affiliates | — |  |  | 427 |  |  | 532 |  |  | (959 | ) |  | — |
Other liabilities | (1 | ) |  | 1,768 |  |  | 488 |  |  | — |  |  | 2,255 |
Total liabilities | 12,404 |  |  | 7,924 |  |  | 7,168 |  |  | (9,792 | ) |  | 17,704 |
Total shareholders’ equity | 11,531 |  |  | 20,998 |  |  | 19,947 |  |  | (40,945 | ) |  | 11,531 |
Total liabilities and shareholders’ equity | $ | 23,935 |  |  | $ | 28,922 |  |  | $ | 27,115 |  |  | $ | (50,737 | ) |  | $ | 29,235 |
Condensed Income Statement |
Condensed Consolidating Statement of Operations
For the three months ended September 28, 2018
| Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Total Company
| (in millions)
Revenue, net | $ | — |  |  | $ | 3,485 |  |  | $ | 4,996 |  |  | $ | (3,453 | ) |  | $ | 5,028 |
Cost of revenue | — |  |  | 3,005 |  |  | 3,824 |  |  | (3,465 | ) |  | 3,364 |
Gross profit | — |  |  | 480 |  |  | 1,172 |  |  | 12 |  |  | 1,664 |
Operating expenses: |  |  |  |  |  |  |  |  |
Research and development | — |  |  | 363 |  |  | 213 |  |  | — |  |  | 576 |
Selling, general and administrative | 1 |  |  | 251 |  |  | 104 |  |  | — |  |  | 356 |
Intercompany operating expense (income) | — |  |  | (407 | ) |  | 407 |  |  | — |  |  | — |
Employee termination, asset impairment, and other charges | — |  |  | 32 |  |  | 14 |  |  | — |  |  | 46 |
Total operating expenses | 1 |  |  | 239 |  |  | 738 |  |  | — |  |  | 978 |
Operating income (loss) | (1 | ) |  | 241 |  |  | 434 |  |  | 12 |  |  | 686 |
Interest and other income (expense): |  |  |  |  |  |  |  |  |
Interest income | 8 |  |  | 3 |  |  | 12 |  |  | (8 | ) |  | 15 |
Interest expense | (116 | ) |  | (6 | ) |  | (2 | ) |  | 8 |  |  | (116 | )
Other income (expense), net | 1 |  |  | — |  |  | (1 | ) |  | (2 | ) |  | (2 | )
Total interest and other income (expense), net | (107 | ) |  | (3 | ) |  | 9 |  |  | (2 | ) |  | (103 | )
Income (loss) before taxes | (108 | ) |  | 238 |  |  | 443 |  |  | 10 |  |  | 583 |
Income tax expense (benefit) | (144 | ) |  | 118 |  |  | 98 |  |  | — |  |  | 72 |
Equity in earnings from subsidiaries | 475 |  |  | 345 |  |  | — |  |  | (820 | ) |  | — |
Net income | $ | 511 |  |  | $ | 465 |  |  | $ | 345 |  |  | $ | (810 | ) |  | $ | 511 |
Condensed Consolidating Statement of Operations
For the three months ended September 29, 2017
| Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Total Company
| (in millions)
Revenue, net | $ | — |  |  | $ | 3,710 |  |  | $ | 5,081 |  |  | $ | (3,610 | ) |  | $ | 5,181 |
Cost of revenue | — |  |  | 3,200 |  |  | 3,647 |  |  | (3,579 | ) |  | 3,268 |
Gross profit | — |  |  | 510 |  |  | 1,434 |  |  | (31 | ) |  | 1,913 |
Operating expenses: |  |  |  |  |  |  |  |  |
Research and development | — |  |  | 381 |  |  | 211 |  |  | — |  |  | 592 |
Selling, general and administrative | 2 |  |  | 258 |  |  | 104 |  |  | — |  |  | 364 |
Intercompany operating expense (income) | — |  |  | (400 | ) |  | 400 |  |  | — |  |  | — |
Employee termination, asset impairment, and other charges | — |  |  | 11 |  |  | 41 |  |  | — |  |  | 52 |
Total operating expenses | 2 |  |  | 250 |  |  | 756 |  |  | — |  |  | 1,008 |
Operating income (loss) | (2 | ) |  | 260 |  |  | 678 |  |  | (31 | ) |  | 905 |
Interest and other income (expense): |  |  |  |  |  |  |  |  |
Interest income | 81 |  |  | 2 |  |  | 14 |  |  | (81 | ) |  | 16 |
Interest expense | (204 | ) |  | (6 | ) |  | (76 | ) |  | 81 |  |  | (205 | )
Other income (expense), net | (8 | ) |  | 11 |  |  | (9 | ) |  | — |  |  | (6 | )
Total interest and other income (expense), net | (131 | ) |  | 7 |  |  | (71 | ) |  | — |  |  | (195 | )
Income (loss) before taxes | (133 | ) |  | 267 |  |  | 607 |  |  | (31 | ) |  | 710 |
Income tax expense (benefit) | (57 | ) |  | 54 |  |  | 32 |  |  | — |  |  | 29 |
Equity in earnings from subsidiaries | 757 |  |  | 592 |  |  | — |  |  | (1,349 | ) |  |
Net income | $ | 681 |  |  | $ | 805 |  |  | $ | 575 |  |  | $ | (1,380 | ) |  | $ | 681 |
Condensed Statement of Comprehensive Income |
Condensed Consolidating Statement of Comprehensive Income (Loss)
For the three months ended September 28, 2018
| Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Total Company
| (in millions)
Net income | $ | 511 |  |  | $ | 465 |  |  | 345 |  |  | $ | (810 | ) |  | $ | 511 |
Other comprehensive loss, before tax: |  |  |  |  |  |  |  |  |
Foreign currency translation adjustment | (37 | ) |  | (34 | ) |  | (34 | ) |  | 68 |  |  | (37 | )
Net unrealized loss, on derivative contracts and available-for-sale securities | (1 | ) |  | (8 | ) |  | (10 | ) |  | 18 |  |  | (1 | )
Total other comprehensive loss, before tax | (38 | ) |  | (42 | ) |  | (44 | ) |  | 86 |  |  | (38 | )
Income tax benefit related to items of other comprehensive loss | 1 |  |  | — |  |  | 1 |  |  | (1 | ) |  | 1 |
Other comprehensive loss, net of tax | (37 | ) |  | (42 | ) |  | (43 | ) |  | 85 |  |  | (37 | )
Total comprehensive income | $ | 474 |  |  | $ | 423 |  |  | $ | 302 |  |  | $ | (725 | ) |  | $ | 474 |
Condensed Consolidating Statement of Comprehensive Income (Loss)
For the three months ended September 29, 2017
| Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Total Company
| (in millions)
Net income | $ | 681 |  |  | $ | 805 |  |  | $ | 575 |  |  | $ | (1,380 | ) |  | $ | 681 |
Other comprehensive loss, before tax: |  |  |  |  |  |  |  |  |
Foreign currency translation adjustment | (4 | ) |  | (4 | ) |  | (4 | ) |  | 8 |  |  | (4 | )
Net unrealized gain (loss) on derivative contracts and available-for-sale securities | 3 |  |  | 2 |  |  | 2 |  |  | (4 | ) |  | 3 |
Total other comprehensive loss, before tax | (1 | ) |  | (2 | ) |  | (2 | ) |  | 4 |  |  | (1 | )
Income tax benefit (expense) related to items of other comprehensive loss | — |  |  | — |  |  | (2 | ) |  | 2 |  |  | — |
Other comprehensive loss, net of tax | (1 | ) |  | (2 | ) |  | (4 | ) |  | 6 |  |  | (1 | )
Total comprehensive income | $ | 680 |  |  | $ | 803 |  |  | $ | 571 |  |  | $ | (1,374 | ) |  | $ | 680 |
Condensed Cash Flow Statement |
Condensed Consolidating Statement of Cash Flows
For the three months ended September 28, 2018
| Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Total Company
| (in millions)
Cash flows from operating activities |  |  |  |  |  |  |  |  |
Net cash provided by (used in) operating activities | (101 | ) |  | (691 | ) |  | 1,244 |  |  | 253 |  |  | 705 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |
Purchases of property, plant and equipment | — |  |  | (63 | ) |  | (214 | ) |  | — |  |  | (277 | )
Purchases of investments | — |  |  | (2 | ) |  | (9 | ) |  | — |  |  | (11 | )
Proceeds from sale of investments | — |  |  | — |  |  | 6 |  |  | — |  |  | 6 |
Proceeds from maturities of investments | — |  |  | — |  |  | 3 |  |  | — |  |  | 3 |
Notes receivable issuances to Flash Ventures | — |  |  | — |  |  | (115 | ) |  | — |  |  | (115 | )
Notes receivable proceeds from Flash Ventures | — |  |  | — |  |  | 144 |  |  | — |  |  | 144 |
Strategic investments and other, net | — |  |  | — |  |  | (9 | ) |  | — |  |  | (9 | )
Intercompany loan from consolidated affiliates | 696 |  |  | — |  |  | — |  |  | (696 | ) |  | — |
Advances from (to) parent and consolidated affiliates | 97 |  |  | (97 | ) |  | — |  |  | — |  |  | — |
Net cash provided by (used in) investing activities | 793 |  |  | (162 | ) |  | (194 | ) |  | (696 | ) |  | (259 | )
Cash flows from financing activities |  |  |  |  |  |  | — |  |  |
Issuance of stock under employee stock plans | 8 |  |  | — |  |  | — |  |  | — |  |  | 8 |
Taxes paid on vested stock awards under employee stock plans | (66 | ) |  | — |  |  | — |  |  | — |  |  | (66 | )
Repurchases of common stock | (563 | ) |  | — |  |  | — |  |  | — |  |  | (563 | )
Dividends paid to shareholders | (148 | ) |  | — |  |  | — |  |  | — |  |  | (148 | )
Repayment of debt | (38 | ) |  | — |  |  | — |  |  | — |  |  | (38 | )
Intercompany loan to consolidated affiliates | — |  |  | (180 | ) |  | (516 | ) |  | 696 |  |  | — |
Change in investment in consolidated subsidiaries | 80 |  |  | 1,426 |  |  | (1,253 | ) |  | (253 | ) |  | — |
Net cash provided by (used in) financing activities | (727 | ) |  | 1,246 |  |  | (1,769 | ) |  | 443 |  |  | (807 | )
Effect of exchange rate changes on cash | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Net increase (decrease) in cash and cash equivalents | (35 | ) |  | 393 |  |  | (717 | ) |  | — |  |  | (359 | )
Cash and cash equivalents, beginning of year | 40 |  |  | 668 |  |  | 4,297 |  |  | — |  |  | 5,005 |
Cash and cash equivalents, end of period | 5 |  |  | 1,061 |  |  | 3,580 |  |  | — |  |  | 4,646 |
Condensed Consolidating Statement of Cash Flows
For the three months ended September 29, 2017
| Parent |  | Guarantor Subsidiaries |  | Non-Guarantor Subsidiaries |  | Eliminations |  | Total Company
| (in millions)
Cash flows from operating activities |  |  |  |  |  |  |  |  |
Net cash provided by (used in) operating activities | $ | (6 | ) |  | $ | 145 |  |  | $ | 1,031 |  |  | $ | (37 | ) |  | $ | 1,133 |
Cash flows from investing activities |  |  |  |  |  |  |  |  |
Purchases of property, plant and equipment | — |  |  | (47 | ) |  | (113 | ) |  | — |  |  | (160 | )
Proceeds from the sale of property, plant and equipment | — |  |  | — |  |  | 5 |  |  | — |  |  | 5 |
Acquisitions, net of cash acquired | — |  |  | (93 | ) |  | — |  |  | — |  |  | (93 | )
Purchases of investments | — |  |  | (10 | ) |  | (28 | ) |  | — |  |  | (38 | )
Proceeds from sale of investments | — |  |  | — |  |  | 14 |  |  | — |  |  | 14 |
Proceeds from maturities of investments | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
Notes receivable issuances to Flash Ventures | — |  |  | — |  |  | (229 | ) |  | — |  |  | (229 | )
Notes receivable proceeds from Flash Ventures | — |  |  | — |  |  | 98 |  |  | — |  |  | 98 |
Strategic investments and other, net |  |  |  |  | 23 |  |  | — |  |  | 23 |
Advances from (to) consolidated affiliates | 60 |  |  | (62 | ) |  | — |  |  | 2 |  |  | — |
Net cash provided by (used in) investing activities | 60 |  |  | (212 | ) |  | (228 | ) |  | 2 |  |  | (378 | )
Cash flows from financing activities |  |  |  |  |  |  |  |  |
Issuance of stock under employee stock plans | 20 |  |  | — |  |  |  |  | — |  |  | 20 |
Taxes paid on vested stock awards under employee stock plans | (61 | ) |  | — |  |  |  |  | — |  |  | (61 | )
Dividends paid to shareholders | (147 | ) |  | — |  |  |  |  | — |  |  | (147 | )
Settlement of debt hedge contracts | 26 |  |  |  |  |  |  | — |  |  | 26 |
Repayment of debt | (62 | ) |  |  |  |  |  | — |  |  | (62 | )
Intercompany loan from (to) consolidated affiliates | 300 |  |  |  |  | (300 | ) |  | — |  |  | — |
Change in investment in consolidated subsidiaries | 117 |  |  | (129 | ) |  | (23 | ) |  | 35 |  |  | — |
Net cash provided by (used in) financing activities | 193 |  |  | (129 | ) |  | (323 | ) |  | 35 |  |  | (224 | )
Effect of exchange rate changes on cash | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |
Net increase (decrease) in cash and cash equivalents | 247 |  |  | (196 | ) |  | 481 |  |  | — |  |  | 532 |
Cash and cash equivalents, beginning of year | 18 |  |  | 1,212 |  |  | 5,124 |  |  | — |  |  | 6,354 |
Cash and cash equivalents, end of period | $ | 265 |  |  | $ | 1,016 |  |  | $ | 5,605 |  |  | $ | — |  |  | $ | 6,886 |

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