XML 44 R31.htm IDEA: XBRL DOCUMENT v3.7.0.1

Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of Provision For (Benefits From) Income Taxes

The provision for (benefit from) income taxes consisted of the following:

	Fiscal Years Ended
(Dollars in millions)	June 30, 2017				July 1, 2016				July 3, 2015
Current income tax expense (benefit):
U.S. Federal	$	—			$	1			$	—
U.S. State	1				2				4
Non-U.S.	39				25				222
Total Current	40				28				226
Deferred income tax expense (benefit):
U.S. Federal	(5		)		—				(6		)
U.S. State	—				—				(2		)
Non-U.S.	8				(2		)		10
Total Deferred	3				(2		)		2
Provision for (benefit from) income taxes	$	43			$	26			$	228

Schedule of Income Before Income Tax Expense (Benefit)

Income (loss) before income taxes consisted of the following:

	Fiscal Years Ended
(Dollars in millions)	June 30, 2017				July 1, 2016				July 3, 2015
U.S.	$	(22	)		$	—			$	101
Non-U.S.	837				274				1,869
	$	815			$	274			$	1,970

Schedule of Deferred Tax Assets and Liabilities

	Fiscal Years Ended
(Dollars in millions)	June 30, 2017				July 1, 2016
Deferred tax assets
Accrued warranty	$	85			$	74
Inventory carrying value adjustments	43				32
Receivable allowance	19				11
Accrued compensation and benefits	99				85
Depreciation	109				173
Restructuring accruals	(1		)		14
Other accruals and deferred items	51				50
Net operating losses and tax credit carry-forwards	1,224				1,252
Other assets	11				2
Total deferred tax assets	1,640				1,693
Valuation allowance	(966		)		(984		)
Net deferred tax assets	674				709
Deferred tax liabilities
Unremitted earnings of certain non-U.S. entities	(7		)		(11		)
Acquisition-related items	(65		)		(92		)
Total deferred tax liabilities	(72		)		(103		)
Deferred taxes on intra-entity transactions	2				—
Total net deferred tax assets	$	604			$	606
As Reported on the Balance Sheet
Deferred income taxes	$	609			$	616
Other non-current liabilities	(5		)		(10		)
Total net deferred income taxes	$	604			$	606

Schedule of Reconciliation Between the Provision for Income Taxes at the Statutory Rate and the Effective Tax Rate

25% was applied as follows:

	Fiscal Years Ended
(Dollars in millions)	June 30, 2017				July 1, 2016				July 3, 2015
Provision at statutory rate	$	204			$	69			$	493
Net U.S. federal and state income taxes	1				3				7
Permanent differences	19				10				2
Valuation allowance	(11		)		(1		)		15
Non-U.S. losses with no tax benefits	17				1				2
Non-U.S. earnings taxed at other than statutory rate	(186		)		(37		)		(463		)
Audit assessment	—				—				173
Reversal of previously recorded taxes	(4		)		(19		)		(5		)
Other individually immaterial items	3				—				4
Provision for (benefit from) income taxes	$	43			$	26			$	228

Schedule of Gross Unrecognized Tax Benefits

	Fiscal Years Ended
(Dollars in millions)	June 30, 2017				July 1, 2016				July 3, 2015
Balance of unrecognized tax benefits at the beginning of the year	$	76			$	89			$	120
Gross increase for tax positions of prior years	2				12				12
Gross decrease for tax positions of prior years	(7		)		(8		)		(4		)
Gross increase for tax positions of current year	16				11				9
Gross decrease for tax positions of current year	—				—				—
Settlements	—				—				(45		)
Lapse of statutes of limitation	(13		)		(27		)		(3		)
Non-U.S. exchange (gain)/loss	—				(1		)		—
Balance of unrecognized tax benefits at the end of the year	$	74			$	76			$	89

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/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum: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/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum: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/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum: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/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15A
-URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32840-109319

+ Details

Name:	us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration