Separate Financial Information of Guarantor Subsidiaries (Tables)

12 Months Ended

Jun. 28, 2019

Condensed Financial Information Disclosure [Abstract]



Condensed Consolidating Balance Sheet
As of June 28, 2019

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total Company
	(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	8	$	985	$	2,462	$	—		$	3,455
Accounts receivable, net	—		779		425		—			1,204
Intercompany receivables	2,409		5,808		1,581		(9,798		)	—
Inventories	—		990		2,438		(145		)	3,283
Loans due from consolidated affiliates	—		—		50		(50		)	—
Other current assets	2		251		282		—			535
Total current assets	2,419		8,813		7,238		(9,993		)	8,477
Property, plant and equipment, net	—		873		1,970		—			2,843
Notes receivable and investments in Flash Ventures	—		—		2,791		—			2,791
Goodwill	—		388		9,688		—			10,076
Other intangible assets, net	—		23		1,688		—			1,711
Investments in consolidated subsidiaries	20,772		16,355		—		(37,127		)	—
Loans due from consolidated affiliates	—		674		—		(674		)	—
Other non-current assets	60		51		361		—			472
Total assets	$	23,251	$	27,177	$	23,736	$	(47,794	)	$	26,370

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	—	$	195	$	1,372	$	—		$	1,567
Accounts payable to related parties	—		—		331		—			331
Intercompany payables	1,871		3,515		4,412		(9,798		)	—
Accrued expenses	195		522		579		—			1,296
Accrued compensation	—		214		133		—			347
Loans due to consolidated affiliates	—		50		—		(50		)	—
Current portion of long-term debt	276		—		—		—			276
Total current liabilities	2,342		4,496		6,827		(9,848		)	3,817
Long-term debt	10,213		—		33		—			10,246
Loans due to consolidated affiliates	674		—		—		(674		)	—
Other liabilities	55		1,795		490		—			2,340
Total liabilities	13,284		6,291		7,350		(10,522		)	16,403
Total shareholders’ equity	9,967		20,886		16,386		(37,272		)	9,967
Total liabilities and shareholders’ equity	$	23,251	$	27,177	$	23,736	$	(47,794	)	$	26,370



Condensed 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 year ended June 28, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Revenue, net	$	—		$	12,860		$	17,189		$	(13,480	)	$	16,569
Cost of revenue	—			11,237			15,138			(13,558		)	12,817
Gross profit	—			1,623			2,051			78			3,752
Operating expenses:
Research and development	—			1,376			806			—			2,182
Selling, general and administrative	2			865			450			—			1,317
Intercompany operating expense (income)	16			(1,523		)	1,507			—			—
Employee termination, asset impairment, and other charges	—			85			81			—			166
Total operating expenses	18			803			2,844			—			3,665
Operating income (loss)	(18		)	820			(793		)	78			87
Interest and other income (expense):
Interest income	10			25			46			(24		)	57
Interest expense	(478		)	(9		)	(6		)	24			(469		)
Other income (expense), net	1			(6		)	43			—			38
Total interest and other income (expense), net	(467		)	10			83			—			(374		)
Income (loss) before taxes	(485		)	830			(710		)	78			(287		)
Equity in earnings from subsidiaries	(418		)	(867		)	—			1,285			—
Income tax expense (benefit)	(149		)	457			159			—			467
Net loss	$	(754	)	$	(494	)	$	(869	)	$	1,363		$	(754	)



Condensed Consolidating Statement of Operations
For the year ended June 29, 2018

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Revenue, net	$	—		$	14,913		$	20,155		$	(14,421	)	$	20,647
Cost of revenue	—			12,913			14,573			(14,544		)	12,942
Gross profit	—			2,000			5,582			123			7,705
Operating expenses:
Research and development	—			1,551			849			—			2,400
Selling, general and administrative	8			1,044			421			—			1,473
Intercompany operating expense (income)	—			(1,626		)	1,626			—			—
Employee termination, asset impairment, and other charges	1			47			167			—			215
Total operating expenses	9			1,016			3,063			—			4,088
Operating income (loss)	(9		)	984			2,519			123			3,617
Interest and other income (expense):
Interest income	211			8			51			(210		)	60
Interest expense	(674		)	(21		)	(191		)	210			(676		)
Other expense, net	(905		)	(9		)	(2		)	—			(916		)
Total interest and other expense, net	(1,368		)	(22		)	(142		)	—			(1,532		)
Income (loss) before taxes	(1,377		)	962			2,377			123			2,085
Equity in earnings from subsidiaries	1,698			2,223			—			(3,921		)	—
Income tax expense (benefit)	(354		)	1,633			131			—			1,410
Net income	$	675		$	1,552		$	2,246		$	(3,798	)	$	675



Condensed Consolidating Statement of Operations
For the year ended June 30, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Revenue, net	$	—		$	14,732		$	16,381		$	(12,020	)	$	19,093
Cost of revenue	—			12,786			12,203			(11,968		)	13,021
Gross profit	—			1,946			4,178			(52		)	6,072
Operating expenses:
Research and development	—			1,619			822			—			2,441
Selling, general and administrative	6			1,006			433			—			1,445
Intercompany operating expense (income)	—			(1,736		)	1,736			—			—
Employee termination, asset impairment, and other charges	—			88			144			—			232
Total operating expenses	6			977			3,135			—			4,118
Operating income (loss)	(6		)	969			1,043			(52		)	1,954
Interest and other income (expense):
Interest income	347			11			22			(354		)	26
Interest expense	(843		)	(10		)	(348		)	354			(847		)
Other income (expense), net	(290		)	49			(61		)	(62		)	(364		)
Total interest and other income (expense), net	(786		)	50			(387		)	(62		)	(1,185		)
Income (loss) before taxes	(792		)	1,019			656			(114		)	769
Equity in earnings from subsidiaries	907			287			—			(1,194		)	—
Income tax expense (benefit)	(282		)	259			395			—			372
Net income	$	397		$	1,047		$	261		$	(1,308	)	$	397



Condensed Consolidating Statement of Comprehensive Income (Loss)
For the year ended June 28, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Net loss	$	(754	)	$	(494	)	$	(869	)	$	1,363		$	(754	)
Other comprehensive income (loss), before tax:
Actuarial pension loss	(39		)	(39		)	(39		)	78			(39		)
Foreign currency translation adjustment	28			31			31			(62		)	28
Net unrealized gain (loss), on derivative contracts and available-for-sale securities	(39		)	40			38			(78		)	(39		)
Total other comprehensive income (loss), before tax	(50		)	32			30			(62		)	(50		)
Income tax benefit related to items of other comprehensive income (loss)	21			1			2			(3		)	21
Other comprehensive income (loss), net of tax	(29		)	33			32			(65		)	(29		)
Total comprehensive loss	$	(783	)	$	(461	)	$	(837	)	$	1,298		$	(783	)

Condensed Statement of Comprehensive Income



Condensed Consolidating Statement of Comprehensive Income (Loss)
For the year ended June 28, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Net loss	$	(754	)	$	(494	)	$	(869	)	$	1,363		$	(754	)
Other comprehensive income (loss), before tax:
Actuarial pension loss	(39		)	(39		)	(39		)	78			(39		)
Foreign currency translation adjustment	28			31			31			(62		)	28
Net unrealized gain (loss), on derivative contracts and available-for-sale securities	(39		)	40			38			(78		)	(39		)
Total other comprehensive income (loss), before tax	(50		)	32			30			(62		)	(50		)
Income tax benefit related to items of other comprehensive income (loss)	21			1			2			(3		)	21
Other comprehensive income (loss), net of tax	(29		)	33			32			(65		)	(29		)
Total comprehensive loss	$	(783	)	$	(461	)	$	(837	)	$	1,298		$	(783	)



Condensed Consolidating Statement of Comprehensive Income (Loss)
For the year ended June 29, 2018

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Net income	$	675		$	1,552		$	2,246		$	(3,798	)	$	675
Other comprehensive income, before tax:
Actuarial pension loss	(2		)	(2		)	(2		)	4			(2		)
Foreign currency translation adjustment	18			15			15			(30		)	18
Net unrealized gain on derivative contracts and available-for-sale securities	7			(10		)	(6		)	16			7
Total other comprehensive income, before tax	23			3			7			(10		)	23
Income tax benefit (expense) related to items of other comprehensive income	(4		)	1			(1		)	—			(4		)
Other comprehensive income, net of tax	19			4			6			(10		)	19
Total comprehensive income	$	694		$	1,556		$	2,252		$	(3,808	)	$	694



Condensed Consolidating Statement of Comprehensive Income (Loss)
For the year ended June 30, 2017

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Net income	$	397		$	1,047		$	261		$	(1,308	)	$	397
Other comprehensive loss, before tax:													—
Actuarial pension gain	39			39			39			(78		)	39
Foreign currency translation adjustment	(115		)	(113		)	(136		)	249			(115		)
Net unrealized loss on derivative contracts and available-for-sale securities	(75		)	(75		)	(73		)	148			(75		)
Total other comprehensive loss, before tax	(151		)	(149		)	(170		)	319			(151		)
Income tax expense related to items of other comprehensive loss	(10		)	(10		)	(8		)	18			(10		)
Other comprehensive loss, net of tax	(161		)	(159		)	(178		)	337			(161		)
Total comprehensive income	$	236		$	888		$	83		$	(971	)	$	236

Condensed Cash Flow Statement



Condensed Consolidating Statement of Cash Flows
For the year ended June 28, 2019

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	160		$	(1,286	)	$	2,723		$	(50	)	$	1,547
Cash flows from investing activities
Purchases of property, plant and equipment	—			(250		)	(626		)	—			(876		)
Proceeds from the sale of property, plant and equipment	—			116			3			—			119
Purchases of investments	—			(11		)	(68		)	—			(79		)
Proceeds from sale of investments	—			—			175			—			175
Proceeds from maturities of investments	—			—			7			—			7
Notes receivable issuances to Flash Ventures	—			—			(1,364		)	—			(1,364		)
Notes receivable proceeds from Flash Ventures	—			—			766			—			766
Strategic investments and other, net	—			2			(22		)	—			(20		)
Intercompany loan from (to) consolidated affiliates	943			(659		)	1			(285		)	—
Advances from (to) parent and consolidated affiliates	(342		)	342			—			—			—
Net cash provided by (used in) investing activities	601			(460		)	(1,128		)	(285		)	(1,272		)
Cash flows from financing activities										—
Issuance of stock under employee stock plans	118			—			—			—			118
Taxes paid on vested stock awards under employee stock plans	(115		)	—			—			—			(115		)
Repurchases of common stock	(563		)	—			—			—			(563		)
Dividends paid to shareholders	(584		)	—			—			—			(584		)
Repayment of debt	(181		)	—			—			—			(181		)
Repayment of revolving credit facility	(500		)	—			—			—			(500		)
Debt issuance costs	(4		)	—			—			—			(4		)
Intercompany loan from (to) consolidated affiliates	674			(377		)	(582		)	285			—
Change in investment in consolidated subsidiaries	362			2,440			(2,852		)	50			—
Net cash provided by (used in) financing activities	(793		)	2,063			(3,434		)	335			(1,829		)
Effect of exchange rate changes on cash	—			—			4			—			4
Net increase (decrease) in cash and cash equivalents	(32		)	317			(1,835		)	—			(1,550		)
Cash and cash equivalents, beginning of year	40			668			4,297			—			5,005
Cash and cash equivalents, end of period	$	8		$	985		$	2,462		$	—		$	3,455



Condensed Consolidating Statement of Cash Flows
For the year ended June 29, 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	$	(144	)	$	211		$	4,158		$	(20	)	$	4,205
Cash flows from investing activities
Purchases of property, plant and equipment	—			(220		)	(615		)	—			(835		)
Proceeds from the sale of property, plant and equipment	—			—			26			—			26
Acquisitions, net of cash acquired	—			(94		)	(6		)	—			(100		)
Purchases of investments	—			(21		)	(68		)	—			(89		)
Proceeds from sale of investments	—			—			48			—			48
Proceeds from maturities of investments	—			—			19			—			19
Notes receivable issuances to Flash Ventures	—			—			(1,313		)	—			(1,313		)
Notes receivable proceeds from Flash Ventures	—			—			571			—			571
Strategic investments and other, net	—			(2		)	20			—			18
Intercompany loan from consolidated affiliates	3,757			—			—			(3,757		)	—
Advances from (to) parent and consolidated affiliates	(86		)	86			—			—			—
Net cash provided by (used in) investing activities	3,671			(251		)	(1,318		)	(3,757		)	(1,655		)
Cash flows from financing activities
Issuance of stock under employee stock plans	220			—			—			—			220
Taxes paid on vested stock awards under employee stock plans	(171		)	—			—			—			(171		)
Repurchases of common stock	(591		)	—			—			—			(591		)
Dividends paid to shareholders	(593		)	—			—			—			(593		)
Settlement of debt hedge contracts	28			—			—			—			28
Repayment of debt	(17,074		)	—			—			—			(17,074		)
Proceeds from debt	13,840			—			—			—			13,840
Proceeds from revolving credit facility	500			—			—			—			500
Debt issuance costs	(59		)	—			—			—			(59		)
Intercompany loan to consolidated affiliates	—			(119		)	(3,638		)	3,757			—
Change in investment in consolidated subsidiaries	395			(385		)	(30		)	20			—
Net cash used in financing activities	(3,505		)	(504		)	(3,668		)	3,777			(3,900		)
Effect of exchange rate changes on cash	—			—			1			—			1
Net increase (decrease) in cash and cash equivalents	22			(544		)	(827		)	—			(1,349		)
Cash and cash equivalents, beginning of year	18			1,212			5,124			—			6,354
Cash and cash equivalents, end of year	$	40		$	668		$	4,297		$	—		$	5,005



Condensed Consolidating Statement of Cash Flows
For the year ended June 30, 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	$	(360	)	$	(836	)	$	4,593		$	40		$	3,437
Cash flows from investing activities
Purchases of property, plant and equipment	—			(240		)	(338		)	—			(578		)
Proceeds from the sale of property, plant and equipment	—			—			21			—			21
Purchases of investments	—			—			(281		)	—			(281		)
Proceeds from sale of investments	—			—			94			—			94
Proceeds from maturities of investments	—			—			417			—			417
Investments in Flash Ventures	—			—			(20		)	—			(20		)
Notes receivable issuances to Flash Ventures	—			—			(549		)	—			(549		)
Notes receivable proceeds from Flash Ventures	—			—			292			—			292
Strategic investments and other, net	—			(1		)	(31		)	—			(32		)
Intercompany loans from consolidated affiliates	1,300			39			—			(1,339		)	—
Advances from (to) consolidated affiliates	(158		)	166			—			(8		)	—
Net cash provided by (used in) investing activities	1,142			(36		)	(395		)	(1,347		)	(636		)
Cash flows from financing activities
Issuance of stock under employee stock plans	235			—			—			—			235
Taxes paid on vested stock awards under employee stock plans	(124		)	—			—			—			(124		)
Excess tax benefits from employee stock plans	119			—			—			—			119
Proceeds from acquired call option	—			—			61			—			61
Settlement of convertible debt	—			—			(492		)	—			(492		)
Dividends paid to shareholders	(574		)	—			—			—			(574		)
Settlement of debt hedge contracts	—			(21		)	—			—			(21		)
Repayment of debt	(8,702		)	(2,995		)	—			—			(11,697		)
Proceeds from debt	7,908			—			—			—			7,908
Debt issuance costs	(10		)	—			—			—			(10		)
Intercompany loan to consolidated affiliates	—			(5,454		)	4,115			1,339			—
Change in investment in consolidated subsidiaries	384			9,348			(9,700		)	(32		)	—
Net cash provided by (used in) financing activities	(764		)	878			(6,016		)	1,307			(4,595		)
Effect of exchange rate changes on cash	—			—			(3		)	—			(3		)
Net increase (decrease) in cash and cash equivalents	18			6			(1,821		)	—			(1,797		)
Cash and cash equivalents, beginning of year	—			1,206			6,945			—			8,151
Cash and cash equivalents, end of year	18			1,212			5,124			—			6,354