XML 67 R39.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Income Tax Expense (Tables) | 12 Months Ended
--- | ---
Jun. 28, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of Income (loss) before taxes were as follows:
| 2024 |  | 2023 |  | 2022
| (in millions)
Foreign | $ | (351) |  |  | $ | (2,019) |  |  | $ | 1,432 |
Domestic | (310) |  |  | 469 |  |  | 739 |
Income (loss) before taxes | $ | (661) |  |  | $ | (1,550) |  |  | $ | 2,171 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense were as follows:
| 2024 |  | 2023 |  | 2022
| (in millions)
Current: |  |  |  |  |
Foreign | $ | 260 |  |  | $ | 153 |  |  | $ | 143 |
Domestic - Federal | 34 |  |  | 35 |  |  | 341 |
Domestic - State | 4 |  |  | (6) |  |  | 25 |
| 298 |  |  | 182 |  |  | 509 |
Deferred: |  |  |  |  |
Foreign | 13 |  |  | (6) |  |  | 29 |
Domestic - Federal | (152) |  |  | (36) |  |  | 84 |
Domestic - State | (22) |  |  | (6) |  |  | 3 |
| (161) |  |  | (48) |  |  | 116 |
Income tax expense | $ | 137 |  |  | $ | 134 |  |  | $ | 625 |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences and carryforwards, which give rise to a significant portion of deferred tax assets and liabilities were as follows:
| June 28, 2024 |  | June 30, 2023
| (in millions)
Deferred tax assets: |  |  |
Sales related reserves and accrued expenses not currently deductible | $ | 66 |  |  | $ | 69 |
Accrued compensation and benefits not currently deductible | 116 |  |  | 88 |
Net operating loss carryforward | 175 |  |  | 183 |
Business credit carryforward | 528 |  |  | 478 |
Long-lived assets | 75 |  |  | 72 |
Interest and hedging costs not currently deductible | 254 |  |  | 76 |
Other | 59 |  |  | 71 |
Total deferred tax assets | 1,273 |  |  | 1,037 |
Deferred tax liabilities: |  |  |
Long-lived assets | (46) |  |  | (57) |
Unremitted earnings of certain non-U.S. entities | (286) |  |  | (291) |
Other | (33) |  |  | (7) |
Total deferred tax liabilities | (365) |  |  | (355) |
Valuation allowances | (582) |  |  | (565) |
Deferred tax assets, net | $ | 326 |  |  | $ | 117 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the U.S. Federal statutory rate to the Company’s effective tax rate is as follows:
| 2024 |  | 2023 |  | 2022
U.S. Federal statutory rate | 21 | % |  | 21 | % |  | 21 | %
Tax rate differential on international income | (46) |  |  | (33) |  |  | (9) |
Tax effect of U.S. foreign income inclusion | (2) |  |  | (1) |  |  | — |
Tax effect of U.S. foreign minimum tax | — |  |  | — |  |  | 5 |
Tax effect of U.S. foreign derived intangible income | 3 |  |  | 4 |  |  | (1) |
Tax effect of U.S. non-deductible stock-based compensation | (1) |  |  | (1) |  |  | 1 |
Tax effect of U.S. permanent differences | 1 |  |  | — |  |  | — |
IRS Settlement | (1) |  |  | 1 |  |  | 15 |
Change in valuation allowance | (3) |  |  | 1 |  |  | 1 |
Unremitted earnings of certain non-U.S. entities | (4) |  |  | — |  |  | 1 |
Foreign income tax credits | 1 |  |  | — |  |  | (3) |
R&D tax credits | 8 |  |  | 5 |  |  | (4) |
U.S. return to provision | — |  |  | (2) |  |  | — |
Tax reserves | 1 |  |  | (1) |  |  | 2 |
Other | 1 |  |  | (3) |  |  | — |
Effective tax rate | (21) | % |  | (9) | % |  | 29 | %
Schedule of Operating Loss Carryforwards | Following is a summary of the Company’s federal and state NOL/tax credit carryforwards and the related expiration dates of these NOL/tax credit carryforwards:
Jurisdiction | NOL/Tax Credit Carryforward Amount |  | Expiration
| (in millions) |  |
Federal NOL (Pre 2017 Act Generation) | $ | 578 |  |  | 2026 to 2038
State NOL | 342 |  |  | 2037 to 2045
Federal tax credits | 61 |  |  | 2025 to 2044
State tax credits | 746 |  |  | No expiration
The major jurisdictions that the Company receives foreign NOL carryforwards and the related amounts and expiration dates of these NOL carryforwards are as follows:
Jurisdiction | NOL Carryforward Amount |  | Expiration
| (in millions) |  |
Belgium | $ | 114 |  |  | No expiration
Malaysia | 108 |  |  | 2028 to 2030
Japan | 61 |  |  | 2025 to 2026
Spain | 46 |  |  | No expiration
Netherlands | 12 |  |  | 2026
Schedule of Income Tax Contingencies | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits excluding accrued interest and penalties:
| 2024 |  | 2023 |  | 2022
| (in millions)
Unrecognized tax benefit, beginning balance | $ | 1,021 |  |  | $ | 1,047 |  |  | $ | 748 |
Gross increases related to current year tax positions | 25 |  |  | 7 |  |  | 12 |
Gross increases related to prior year tax positions | 73 |  |  | 22 |  |  | 358 |
Gross decreases related to prior year tax positions | (32) |  |  | (47) |  |  | (65) |
Settlements | (363) |  |  | (5) |  |  | (1) |
Lapse of statute of limitations | (3) |  |  | (3) |  |  | (5) |
Unrecognized tax benefit, ending balance | $ | 721 |  |  | $ | 1,021 |  |  | $ | 1,047 |
Schedule of Major Foreign Jurisdictions | In the following major foreign jurisdictions where there is no tax holiday, the Company could be subject to examination as noted below:
Jurisdiction |  | Period Subject to Examination
China (calendar) |  | 2014-2023
Ireland (fiscal) |  | 2020-2023
India (fiscal) |  | 2009-2023
Israel (fiscal) |  | 2014-2023
Japan (fiscal) |  | 2015-2023
Malaysia (fiscal) |  | 2017-2023
Thailand (fiscal) |  | 2014-2023
Singapore (fiscal) |  | 2020-2023
United Kingdom (fiscal) |  | 2022-2023

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax position taken on unrecognized tax benefit. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-3 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Schedule Of Major Foreign Jurisdictions Table Text Block + References No definition available. + Details
Name: | wdc_ScheduleOfMajorForeignJurisdictionsTableTextBlockTableTextBlock
Namespace Prefix: | wdc_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration