XML 42 R31.htm IDEA: XBRL DOCUMENT
v3.26.1

Related Parties and Related Commitments and Contingencies (Tables) | 9 Months Ended
--- | ---
Apr. 03, 2026
Commitments and Contingencies Disclosure [Abstract] |
Schedule of Related Party Transactions | The following table presents the notes receivable from, and equity investments in, Flash Ventures for the periods presented:
| April 3, 2026 |  | June 27, 2025
| (in millions)
Notes receivable, Flash Partners | $ | 4 |  |  | $ | 7 |
Notes receivable, Flash Alliance | 8 |  |  | 36 |
Notes receivable, Flash Forward | 471 |  |  | 316 |
Investment in Flash Partners | 30 |  |  | 55 |
Investment in Flash Alliance | 98 |  |  | 115 |
Investment in Flash Forward | 73 |  |  | 125 |
Total notes receivable and investments in Flash Ventures | $ | 684 |  |  | $ | 654 |
The following presents Interest expense and Interest income on notes due to (from) Western Digital Corporation, which were recorded within Interest expense and Interest income in the Condensed Consolidated Statements of Operations for the periods presented:
| Three Months Ended |  | Nine Months Ended
| April 3, 2026 |  | March 28, 2025 |  | April 3, 2026 |  | March 28, 2025
| (in millions)
Interest income on notes due from Western Digital Corporation | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (1) |
Interest expense on notes due to Western Digital Corporation | $ | — |  |  | $ | 3 |  |  | $ | — |  |  | $ | 7 |
The table below summarizes the impact of expense allocations from WDC within the Condensed Consolidated Statements of Operations for the periods presented:
| Three Months Ended |  | Nine Months Ended
| April 3, 2026 |  | March 28, 2025 |  | April 3, 2026 |  | March 28, 2025
| (in millions)
Research and development | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 189 |
Selling, general, and administrative | — |  |  | 10 |  |  | — |  |  | 158 |
Business separation costs | — |  |  | 9 |  |  | — |  |  | 50 |
Employee termination and other charges | — |  |  | — |  |  | — |  |  | 5 |
Total allocation of Corporate Expenses | $ | — |  |  | $ | 19 |  |  | $ | — |  |  | $ | 402 |
A reconciliation of Net transfers from (to) Western Digital Corporation on the Condensed Consolidated Statements of Shareholders’ Equity to the corresponding amounts on the Condensed Consolidated Statements of Cash Flows is as follows:
| Nine Months Ended
| April 3, 2026 |  | March 28, 2025
| (in millions)
Net transfers from Western Digital Corporation per Condensed Consolidated Statements of Shareholders’ Equity | $ | — |  |  | $ | (585) |
Notes due to Western Digital Corporation | — |  |  | (1,223) |
Other assets and liabilities, net transferred from Western Digital Corporation | — |  |  | (105) |
Unis Venture transferred from Western Digital Corporation | — |  |  | (61) |
Property, plant and equipment, net transferred from Western Digital Corporation | — |  |  | (27) |
Tax balances transferred from Western Digital Corporation | — |  |  | (8) |
Accumulated other comprehensive loss transferred from Western Digital Corporation | — |  |  | 10 |
Tax indemnification liability transferred to Western Digital Corporation | — |  |  | 112 |
Net transfers to Western Digital Corporation per Condensed Consolidated Statements of Cash Flows | $ | — |  |  | $ | (1,887) |
Schedule of Variable Interest Entities | The Company’s maximum reasonably estimable loss exposure (excluding lost profits) as a result of its involvement with Flash Ventures, based upon the Japanese yen to U.S. dollar exchange rate at April 3, 2026, is presented below. Investments in Flash Ventures are denominated in Japanese yen, and the maximum estimable loss exposure excludes any cumulative translation adjustment due to translation from the Japanese yen to the U.S. dollar.
| April 3, 2026
| (in millions)
Notes receivable | $ | 483 |
Equity investments | 201 |
Operating lease guarantees | 993 |
Inventory and prepayments | 1,290 |
Maximum estimable loss exposure | $ | 2,967 |
Schedule of Guarantor Obligations | The following table presents the Company’s portion of the remaining guarantee obligations under the Flash Ventures’ lease facilities in both Japanese yen and U.S. dollar-equivalent, based upon the Japanese yen to U.S. dollar exchange rate as of April 3, 2026:
| Lease Amounts
| (Japanese yen, in billions) |  | (U.S. dollar, in millions)
Total guarantee obligations | ¥ | 158 |  |  | $ | 993 |
The following table details the components of the Company’s remaining guarantee obligations between the principal amortization and the purchase option exercise price at the end of the term of the Flash Ventures lease agreements, in annual installments, in U.S. dollars, based upon the Japanese yen to U.S. dollar exchange rate as of April 3, 2026:
Annual Installments | Payment of Principal Amortization |  | Purchase Option Exercise Price at Final Lease Terms |  | Guarantee Amount
| (in millions)
2026 | $ | 89 |  |  | $ | 18 |  |  | $ | 107 |
2027 | 276 |  |  | 95 |  |  | 371 |
2028 | 147 |  |  | 92 |  |  | 239 |
2029 | 70 |  |  | 49 |  |  | 119 |
2030 | 33 |  |  | 57 |  |  | 90 |
2031 | 5 |  |  | 62 |  |  | 67 |
Total guarantee obligations | $ | 620 |  |  | $ | 373 |  |  | $ | 993 |

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

X
- Definition Tabular disclosure of each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 460 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482425/460-10-50-4 + Details
Name: | us-gaap_ScheduleOfGuaranteeObligationsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of related party transactions. Examples of related party transactions include, but are not limited to, transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners and (d) affiliates. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 850 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147483326/850-10-50-1 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 850 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147483326/850-10-50-1 + Details
Name: | us-gaap_ScheduleOfRelatedPartyTransactionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-3 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 5A -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-5A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-9 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-4 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147481203/810-10-50-6 + Details
Name: | us-gaap_ScheduleOfVariableInterestEntitiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration