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Employee Termination, Asset Impairment and Other Charges | 12 Months Ended
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Jul. 03, 2020
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:
|  |  |  |  | 2020 |  | 2019 |  | 2018
|  |  |  |  | (in millions) |  |  |  |
Employee termination and other charges: |  |  |  |  |  |  |  |  |
Closure of Foreign Manufacturing Facilities |  |  |  |  | $ | 5 |  |  | $ | 22 |  |  | $ | 56 |
Business Realignment |  |  |  |  | 44 |  |  | 144 |  |  | 50 |
Restructuring Plan 2016 |  |  |  |  | — |  |  | — |  |  | 92 |
Total employee termination and other charges |  |  |  |  | 49 |  |  | 166 |  |  | 198 |
Asset impairment: |  |  |  |  |  |  |  |  |
Restructuring Plan 2016 |  |  |  |  | — |  |  | — |  |  | 16 |
Total asset impairment |  |  |  |  | — |  |  | — |  |  | 16 |
Stock-based compensation accelerations and adjustments: |  |  |  |  |  |  |  |  |
Business Realignment |  |  |  |  | — |  |  | — |  |  | 1 |
Total stock-based compensation accelerations and adjustments |  |  |  |  | — |  |  | — |  |  | 1 |
Gain on disposition of assets: |  |  |  |  |  |  |  |  |
Business Realignment |  |  |  |  | (17) |  |  | — |  |  | — |
Total gain on disposition of assets |  |  |  |  | (17) |  |  | — |  |  | — |
Total employee termination, asset impairment, and other charges |  |  |  |  | $ | 32 |  |  | $ | 166 |  |  | $ | 215 |
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 substantially completed the closure in fiscal year 2019. The following table presents an analysis of the components of the restructuring charges, payments and adjustments made against the reserve during the year ended July 3, 2020:
| Employee Termination Benefits |  | Contract Termination and Other |  | Total
| (in millions) |  |  |  |
Accrual balance at June 28, 2019 | $ | 30 |  |  | $ | 2 |  |  | $ | 32 |
Charges | 3 |  |  | 2 |  |  | 5 |
Cash payments | (26) |  |  | (4) |  |  | (30) |
Accrual balance at July 3, 2020 | $ | 7 |  |  | $ | — |  |  | $ | 7 |
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, primarily consisting of organization rationalization designed to streamline its business, reduce its cost structure and focus its resources. In addition to the amounts recognized under Business Realignment as presented above, the Company recognized $5 million of accelerated depreciation on facility assets in Cost of revenue and Operating expenses in the Consolidated Statements of Operations for the year ended July 3, 2020. The following table presents an analysis of the components of the activity against the reserve during the year ended July 3, 2020:
| Employee Termination Benefits |  | Contract Termination and Other |  | Total
| (in millions) |  |  |  |
Accrual balance at June 28, 2019 | $ | 37 |  |  | $ | 8 |  |  | $ | 45 |
Charges | 38 |  |  | 6 |  |  | 44 |
Cash payments | (62) |  |  | (14) |  |  | (76) |
Accrual balance at July 3, 2020 | $ | 13 |  |  | $ | — |  |  | $ | 13 |
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 consisted of asset and footprint reductions, product road map consolidation and organization rationalization. These actions were substantially completed in fiscal year 2018.

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