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Segment Reporting, Disaggregated Revenue, Geographic Information, and Concentrations of Risk | 12 Months Ended
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Jun. 27, 2025
Segment Reporting [Abstract] |
Segment Reporting, Disaggregated Revenue, Geographic Information, and Concentrations of Risk | Segment Reporting, Disaggregated Revenue, Geographic Information, and Concentrations of Risk The Company’s Chief Executive Officer, Irving Tan, is the Company’s Chief Operating Decision Maker (“CODM”). The CODM manages the business as a provider of data storage devices and solutions based on HDD technology. The CODM evaluates the performance of the Company and makes decisions regarding the allocation of resources based on the Company’s Net income (loss) from continuing operations and Total assets. The Company has therefore, determined that it has one reportable segment: HDD. The following table is a reconciliation of the Company’s measure of segment profit or loss, significant segment expenses and other segment items:
| 2025 |  | 2024 |  | 2023
| (in millions)
Revenue, net | $ | 9,520 |  |  | $ | 6,317 |  |  | $ | 6,255 |
Less: Significant expenses and other segment items |  |  |  |  |
Cost of revenue(1) | 5,771 |  |  | 4,506 |  |  | 4,827 |
Research and development(1) | 920 |  |  | 885 |  |  | 916 |
Selling, general and administrative(1) | 503 |  |  | 583 |  |  | 656 |
Litigation matter | (179) |  |  | 291 |  |  | — |
Business realignment charges | (6) |  |  | 209 |  |  | 146 |
Stock-based compensation | 167 |  |  | 202 |  |  | 212 |
Strategic review | — |  |  | 38 |  |  | 42 |
Interest expense, net | 312 |  |  | 381 |  |  | 291 |
Loss on retained interest in Sandisk | 772 |  |  | — |  |  | — |
Loss on extinguishment of debt | 100 |  |  | — |  |  | — |
Other expense, net | 2 |  |  | 14 |  |  | 20 |
Other segment items(2) | 28 |  |  | (53) |  |  | (6) |
Income tax expense (benefit) | (513) |  |  | 26 |  |  | 53 |
Net income (loss) from continuing operations | $ | 1,643 |  |  | $ | (765) |  |  | $ | (902) |
(1) Excludes amounts related to stock-based compensation and strategic review which are presented separately in the table above. (2) Other segment items include strategic investment activity and other small charges. Disaggregated Revenue The Company’s disaggregated revenue by end market is as follows:
| 2025 |  | 2024 |  | 2023
| (in millions)
Revenue by end market |  |  |  |  |
Cloud | $ | 8,341 |  |  | $ | 5,052 |  |  | $ | 4,753 |
Client | 556 |  |  | 577 |  |  | 691 |
Consumer | 623 |  |  | 688 |  |  | 811 |
Total revenue | $ | 9,520 |  |  | $ | 6,317 |  |  | $ | 6,255 |
The Company’s operations outside the United States include manufacturing facilities in China, Japan, Malaysia, the Philippines and Thailand, as well as sales offices throughout the Americas, Asia Pacific, Europe, the Middle East and Africa. The following tables summarize the Company’s operations by geographic area:
| 2025 |  | 2024 |  | 2023
| (in millions)
Net revenue (1) |  |  |  |  |
United States | $ | 4,328 |  |  | $ | 2,636 |  |  | $ | 2,694 |
China | 1,549 |  |  | 488 |  |  | 471 |
Hong Kong | 1,051 |  |  | 1,331 |  |  | 1,139 |
Rest of Asia | 792 |  |  | 573 |  |  | 546 |
Europe, Middle East and Africa | 1,536 |  |  | 1,067 |  |  | 1,175 |
Other | 264 |  |  | 222 |  |  | 230 |
Total | $ | 9,520 |  |  | $ | 6,317 |  |  | $ | 6,255 |
(1) Net revenue is attributed to geographic regions based on the ship-to location of the customer.
| June 27, 2025 |  | June 28, 2024
| (in millions)
Long-lived assets (1) |  |  |
United States | $ | 807 |  |  | $ | 810 |
Malaysia | 378 |  |  | 330 |
China | 87 |  |  | 89 |
Thailand | 791 |  |  | 825 |
Rest of Asia | 279 |  |  | 304 |
Europe, Middle East and Africa | 1 |  |  | 1 |
Total | $ | 2,343 |  |  | $ | 2,359 |
(1) Long-lived assets include property, plant and equipment and are attributed to the geographic location in which they are located. Customer Concentration and Credit Risk The Company sells its products to cloud service providers, OEMs, resellers, distributors and retailers throughout the world. For 2025, three customers accounted for 17%, 12% and 10%, respectively, of the Company’s net revenue. For 2024 and 2023, no single customer accounted for 10% or more of the Company’s net revenue. For 2025, 2024 and 2023, the Company’s top 10 customers accounted for 68%, 55% and 56%, respectively, of the Company’s net revenue. The Company performs ongoing credit evaluations of its customers’ financial condition to manage collection risk, in some cases supplemented by collateral. The Company maintains allowances for potential credit losses, and such losses have historically been within management’s expectations. At any given point in time, the total amount outstanding from any one of a number of its customers may be individually significant to the Company’s financial condition. As of June 27, 2025 and June 28, 2024, net accounts receivable were $1.49 billion and $1.23 billion, respectively, and reserves for potential credit losses were not material. As of June 27, 2025, three customers accounted for 20%, 19%, and 12%, respectively, of the Company’s net accounts receivable and as of June 28, 2024, one customer accounted for 23% of the Company’s net accounts receivable. The Company also has cash equivalent and investment policies that limit the amount of credit exposure to any one financial institution or investment instrument and require that investments be made only with financial institutions or in investment instruments evaluated as highly credit-worthy. Supplier Concentration Some key components are purchased from single source vendors for which alternative sources are currently not available. Shortages could occur in these essential materials due to an interruption of supply or increased demand in the industry. If the Company was unable to procure certain of such materials, the Company’s sales could decline, which could have a material adverse effect on its results of operations. The Company also relies on third-party subcontractors to assemble and test a portion of its products. The Company does not have long-term contracts with some of these subcontractors and cannot directly control product delivery schedules or manufacturing processes. This could lead to product shortages or quality assurance problems that could increase the manufacturing costs of the Company’s products and have material adverse effects on the Company’s operating results.

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