XML 24 R10.htm IDEA: XBRL DOCUMENT
v3.24.4

Business Segments, Geographic Information, and Concentrations of Risk | 6 Months Ended
--- | ---
Dec. 27, 2024
Segment Reporting [Abstract] |
Business Segments, Geographic Information, and Concentrations of Risk | Business Segments, Geographic Information, and Concentrations of Risk The following table summarizes the operating performance of the Company’s reportable segments for the periods presented:
| Three Months Ended |  | Six Months Ended
| December 27, 2024 |  | December 29, 2023 |  | December 27, 2024 |  | December 29, 2023
| (in millions, except percentages)
Net revenue: |  |  |  |  |  |  |
HDD | $ | 2,409 |  |  | $ | 1,367 |  |  | $ | 4,620 |  |  | $ | 2,561 |
Flash | 1,876 |  |  | 1,665 |  |  | 3,760 |  |  | 3,221 |
Total net revenue | $ | 4,285 |  |  | $ | 3,032 |  |  | $ | 8,380 |  |  | $ | 5,782 |
Gross profit: |  |  |  |  |  |  |
HDD | $ | 929 |  |  | $ | 339 |  |  | $ | 1,772 |  |  | $ | 612 |
Flash | 609 |  |  | 131 |  |  | 1,341 |  |  | (30) |
Total gross profit for segments | 1,538 |  |  | 470 |  |  | 3,113 |  |  | 582 |
Unallocated corporate items: |  |  |  |  |  |  |
Stock-based compensation expense | (12) |  |  | (13) |  |  | (26) |  |  | (26) |
Amortization of licenses related to a litigation matter | (10) |  |  | — |  |  | (19) |  |  | — |
Amortization of acquired intangible assets | — |  |  | (1) |  |  | (1) |  |  | (1) |
Recovery from contamination incident | — |  |  | 36 |  |  | — |  |  | 36 |
Total unallocated corporate items | (22) |  |  | 22 |  |  | (46) |  |  | 9 |
Consolidated gross profit | $ | 1,516 |  |  | $ | 492 |  |  | $ | 3,067 |  |  | $ | 591 |
Gross margin: |  |  |  |  |  |  |
HDD | 38.6 | % |  | 24.8 | % |  | 38.4 | % |  | 23.9 | %
Flash | 32.5 | % |  | 7.9 | % |  | 35.7 | % |  | (0.9) | %
Consolidated gross margin | 35.4 | % |  | 16.2 | % |  | 36.6 | % |  | 10.2 | %
Disaggregated Revenue The Company’s broad portfolio of technology and products addresses multiple end markets. Cloud is comprised primarily of products for public or private cloud environments and end customers. Through the Client end market, the Company provides its original equipment manufacturer (“OEM”) and channel customers a broad array of high-performance HDD and Flash solutions across personal computer, mobile, gaming, automotive, virtual reality headsets, at-home entertainment and industrial spaces. The Consumer end market is highlighted by the Company’s broad range of retail and other end-user products, which capitalize on the strength of the Company’s product brand recognition and vast points of presence around the world. The Company’s disaggregated revenue information was as follows:
| Three Months Ended |  | Six Months Ended
| December 27, 2024 |  | December 29, 2023 |  | December 27, 2024 |  | December 29, 2023
| (in millions)
Revenue by end market |  |  |  |  |  |  |
Cloud | $ | 2,346 |  |  | $ | 1,071 |  |  | $ | 4,554 |  |  | $ | 1,943 |
Client | 1,168 |  |  | 1,122 |  |  | 2,377 |  |  | 2,269 |
Consumer | 771 |  |  | 839 |  |  | 1,449 |  |  | 1,570 |
Total revenue | $ | 4,285 |  |  | $ | 3,032 |  |  | $ | 8,380 |  |  | $ | 5,782 |
Revenue by geography |  |  |  |  |  |  |
Asia | $ | 1,995 |  |  | $ | 1,699 |  |  | $ | 3,832 |  |  | $ | 3,250 |
Americas | 1,428 |  |  | 804 |  |  | 3,118 |  |  | 1,466 |
Europe, Middle East and Africa | 862 |  |  | 529 |  |  | 1,430 |  |  | 1,066 |
Total revenue | $ | 4,285 |  |  | $ | 3,032 |  |  | $ | 8,380 |  |  | $ | 5,782 |
The Company’s top 10 customers accounted for 51% and 50% of its net revenue for the three and six months ended December 27, 2024, respectively, and 39% of its net revenue for both the three and six months ended December 29, 2023. For the three and six months ended December 27, 2024, one customer accounted for 14% of the Company’s net revenue. No customer accounted for 10% or more of the Company’s net revenue for the three and six months ended December 29, 2023. Goodwill Goodwill is not amortized. Instead, it is tested for impairment annually as of the beginning of the Company’s fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Management performed goodwill impairment assessments for each segment and concluded there were no indications of impairment for the periods presented. The following table provides a summary of goodwill activity for the period:
| HDD |  | Flash |  | Total
| (in millions)
Balance at June 28, 2024 | $ | 4,319 |  |  | $ | 5,713 |  |  | $ | 10,032 |
Divestiture (1) | — |  |  | (303) |  |  | (303) |
Balance at December 27, 2024 | $ | 4,319 |  |  | $ | 5,410 |  |  | $ | 9,729 |
(1) On September 28, 2024, the Company sold a majority interest in a subsidiary. See further discussion in Note 9, Related Parties and Related Commitments and Contingencies.

X
- Definition The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 275 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/275/tableOfContent + Details
Name: | us-gaap_ConcentrationRiskDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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