Separate Financial Information of Guarantor Subsidiaries (Tables)

6 Months Ended

Dec. 29, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet

Condensed Consolidating Balance Sheet
As of December 29, 2017
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total Company
	(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	22	$	1,187	$	5,063	$	—		$	6,272
Short-term investments	—		—		23		—			23
Accounts receivable, net	—		1,207		845		—			2,052
Intercompany receivables	1,760		3,670		1,997		(7,427		)	—
Inventories	—		1,076		1,481		(276		)	2,281
Other current assets	5		181		264		35			485
Total current assets	1,787		7,321		9,673		(7,668		)	11,113
Property, plant and equipment, net	—		1,100		1,954		—			3,054
Notes receivable and investments in Flash Ventures	—		—		1,845		—			1,845
Goodwill	—		387		9,689		—			10,076
Other intangible assets, net	—		44		3,186		—			3,230
Investments in consolidated subsidiaries	19,030		18,314		—		(37,344		)	—
Loans due from consolidated affiliates	3,306		16		—		(3,322		)	—
Other non-current assets	51		612		461		(602		)	522
Total assets	$	24,174	$	27,794	$	26,808	$	(48,936	)	$	29,840
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	—	$	227	$	1,694	$	—		$	1,921
Accounts payable to related parties	—		—		250		—			250
Intercompany payables	609		4,500		2,318		(7,427		)	—
Accrued expenses	273		457		426		35			1,191
Accrued compensation	—		340		183		—			523
Accrued warranty	—		5		189		—			194
Current portion of long-term debt	274		—		—		—			274
Total current liabilities	1,156		5,529		5,060		(7,392		)	4,353
Long-term debt	11,746		—		31		—			11,777
Loans due to consolidated affiliates	—		492		2,830		(3,322		)	—
Other liabilities	—		2,523		517		(602		)	2,438
Total liabilities	12,902		8,544		8,438		(11,316		)	18,568
Total shareholders’ equity	11,272		19,250		18,370		(37,620		)	11,272
Total liabilities and shareholders’ equity	$	24,174	$	27,794	$	26,808	$	(48,936	)	$	29,840

Condensed Consolidating Balance Sheet
As of June 30, 2017
	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Total Company
	(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	18	$	1,212	$	5,124	$	—		$	6,354
Short-term investments	—		—		24		—			24
Accounts receivable, net	—		1,247		701		—			1,948
Intercompany receivables	1,225		2,528		622		(4,375		)	—
Inventories	—		1,133		1,494		(286		)	2,341
Other current assets	4		158		221		6			389
Total current assets	1,247		6,278		8,186		(4,655		)	11,056
Property, plant and equipment, net	—		1,124		1,909		—			3,033
Notes receivable and investments in Flash Ventures	—		—		1,340		—			1,340
Goodwill	—		331		9,683		—			10,014
Other intangible assets, net	—		11		3,812		—			3,823
Investments in consolidated subsidiaries	19,082		17,588		—		(36,670		)	—
Loans due from consolidated affiliates	4,700		16		—		(4,716		)	—
Other non-current assets	51		723		419		(599		)	594
Total assets	$	25,080	$	26,071	$	25,349	$	(46,640	)	$	29,860
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	—	$	257	$	1,887	$	—		$	2,144
Accounts payable to Flash Ventures	—		—		206		—			206
Intercompany payables	270		4,039		66		(4,375		)	—
Accrued expenses	270		360		439		—			1,069
Accrued compensation	—		313		193		—			506
Accrued warranty	—		4		182		—			186
Current portion of long-term debt	233		—		—		—			233
Total current liabilities	773		4,973		2,973		(4,375		)	4,344
Long-term debt	12,889		—		29		—			12,918
Loans due to consolidated affiliates	—		546		4,170		(4,716		)	—
Other liabilities	—		1,243		530		(593		)	1,180
Total liabilities	13,662		6,762		7,702		(9,684		)	18,442
Total shareholders’ equity	11,418		19,309		17,647		(36,956		)	11,418
Total liabilities and shareholders’ equity	$	25,080	$	26,071	$	25,349	$	(46,640	)	$	29,860

Condensed Income Statement

Condensed Consolidating Statement of Operations
For the three months ended December 29, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Revenue, net	$	—		$	3,764		$	5,173		$	(3,601	)	$	5,336
Cost of revenue	—			3,256			3,703			(3,636		)	3,323
Gross profit	—			508			1,470			35			2,013
Operating expenses:
Research and development	—			400			229			—			629
Selling, general and administrative	1			276			104			—			381
Intercompany operating expense (income)	—			(430		)	430			—			—
Employee termination, asset impairment, and other charges	—			10			38			—			48
Total operating expenses	1			256			801			—			1,058
Operating income (loss)	(1		)	252			669			35			955
Interest and other income (expense):
Interest income	66			2			12			(66		)	14
Interest expense	(197		)	(4		)	(62		)	66			(197		)
Other income (expense), net	—			(4		)	6			—			2
Total interest and other expense, net	(131		)	(6		)	(44		)	—			(181		)
Income (loss) before taxes	(132		)	246			625			35			774
Equity in earnings from subsidiaries	(725		)	593			—			132			—
Income tax expense (benefit)	(34		)	1,601			30			—			1,597
Net income (loss)	$	(823	)	$	(762	)	$	595		$	167		$	(823	)

Condensed Consolidating Statement of Operations
For the six months ended December 29, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Revenue, net	$	—		$	7,474		$	10,254		$	(7,211	)	$	10,517
Cost of revenue	—			6,456			7,350			(7,215		)	6,591
Gross profit	—			1,018			2,904			4			3,926
Operating expenses:
Research and development	—			781			440			—			1,221
Selling, general and administrative	3			534			208			—			745
Intercompany operating expense (income)	—			(830		)	830			—			—
Employee termination, asset impairment, and other charges	—			21			79			—			100
Total operating expenses	3			506			1,557			—			2,066
Operating income (loss)	(3		)	512			1,347			4			1,860
Interest and other income (expense):
Interest income	147			4			26			(147		)	30
Interest expense	(401		)	(10		)	(138		)	147			(402		)
Other income (expense), net	(8		)	7			(3		)	—			(4		)
Total interest and other income (expense), net	(262		)	1			(115		)	—			(376		)
Income (loss) before taxes	(265		)	513			1,232			4			1,484
Equity in earnings from subsidiaries	32			1,185			—			(1,217		)	—
Income tax expense (benefit)	(91		)	1,655			62			—			1,626
Net income (loss)	$	(142	)	$	43		$	1,170		$	(1,213	)	$	(142	)

Condensed Consolidating Statement of Operations
For the three months ended December 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Revenue, net	$	—		$	3,786		$	4,245		$	(3,143	)	$	4,888
Cost of revenue	—			3,085			3,495			(3,225		)	3,355
Gross profit	—			701			750			82			1,533
Operating expenses:
Research and development	—			372			213			—			585
Selling, general and administrative	3			252			103			—			358
Intercompany operating expense (income)	—			(218		)	218			—			—
Employee termination, asset impairment, and other charges	—			9			36			—			45
Total operating expenses	3			415			570			—			988
Operating income (loss)	(3		)	286			180			82			545
Interest and other income (expense):
Interest income	86			—			2			(83		)	5
Interest expense	(203		)	—			(85		)	83			(205		)
Other expense, net	(2		)	(5		)	(17		)	—			(24		)
Total interest and other expense, net	(119		)	(5		)	(100		)	—			(224		)
Income (loss) before taxes	(122		)	281			80			82			321
Equity in earnings from subsidiaries	270			19			—			(289		)	—
Income tax expense (benefit)	(87		)	116			57			—			86
Net income	$	235		$	184		$	23		$	(207	)	$	235

Condensed Consolidating Statement of Operations
For the six months ended December 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Revenue, net	$	—		$	7,484		$	8,538		$	(6,420	)	$	9,602
Cost of revenue	—			6,150			7,048			(6,464		)	6,734
Gross profit	—			1,334			1,490			44			2,868
Operating expenses:
Research and development	—			813			411			—			1,224
Selling, general and administrative	4			526			224			—			754
Intercompany operating expense (income)	—			(569		)	569			—			—
Employee termination, asset impairment, and other charges	—			58			55			—			113
Total operating expenses	4			828			1,259			—			2,091
Operating income (loss)	(4		)	506			231			44			777
Interest and other income (expense):
Interest income	180			1			9			(180		)	10
Interest expense	(431		)	(5		)	(185		)	180			(441		)
Other expense, net	(274		)	(4		)	(18		)	—			(296		)
Total interest and other expense, net	(525		)	(8		)	(194		)	—			(727		)
Income (loss) before taxes	(529		)	498			37			44			50
Equity in earnings from subsidiaries	217			(208		)	—			(9		)	—
Income tax expense (benefit)	(181		)	121			241			—			181
Net income (loss)	$	(131	)	$	169		$	(204	)	$	35		$	(131	)

Condensed Statement of Comprehensive Income

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the three months ended December 29, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Total Company
	(in millions)
Net income (loss)	$	(823	)	$	(762	)	$	595	$	167		$	(823	)
Other comprehensive income, before tax:
Foreign currency translation adjustment	6			5			5		(10		)	6
Net unrealized gain on derivative contracts	10			3			3		(6		)	10
Net unrealized gain on available-for-sale securities	—			—			—		—			—
Total other comprehensive income, before tax	16			8			8		(16		)	16
Income tax benefit (expense) related to items of other comprehensive income	(3		)	—			1		(1		)	(3		)
Other comprehensive income, net of tax	13			8			9		(17		)	13
Total comprehensive income (loss)	$	(810	)	$	(754	)	$	604	$	150		$	(810	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the six months ended December 29, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Net income (loss)	$	(142	)	$	43		$	1,170		$	(1,213	)	$	(142	)
Other comprehensive income, before tax:
Actuarial pension gain	—			—			—			—			—
Foreign currency translation adjustment	2			1			1			(2		)	2
Net unrealized gain on derivative contracts	14			6			6			(12		)	14
Net unrealized loss on available-for-sale securities	(1		)	(1		)	(1		)	2			(1		)
Total other comprehensive income, before tax	15			6			6			(12		)	15
Income tax benefit (expense) related to items of other comprehensive income	(3		)	—			(1		)	1			(3		)
Other comprehensive income, net of tax	12			6			5			(11		)	12
Total comprehensive income (loss)	$	(130	)	$	49		$	1,175		$	(1,224	)	$	(130	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the three months ended December 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Net income	$	235		$	184		$	23		$	(207	)	$	235
Other comprehensive loss, before tax:
Actuarial pension gain	1			1			1			(2		)	1
Foreign currency translation adjustment	(186		)	(186		)	(210		)	396			(186		)
Net unrealized loss on derivative contracts	(136		)	(136		)	(132		)	268			(136		)
Total other comprehensive loss, before tax	(321		)	(321		)	(341		)	662			(321		)
Income tax benefit related to items of other comprehensive loss	9			10			9			(19		)	9
Other comprehensive loss, net of tax	(312		)	(311		)	(332		)	643			(312		)
Total comprehensive loss	$	(77	)	$	(127	)	$	(309	)	$	436		$	(77	)

Condensed Consolidating Statement of Comprehensive Income (Loss)
For the six months ended December 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Net income (loss)	$	(131	)	$	169		$	(204	)	$	35		$	(131	)
Other comprehensive loss, before tax:
Actuarial pension gain	6			6			6			(12		)	6
Foreign currency translation adjustment	(169		)	(169		)	(192		)	361			(169		)
Net unrealized loss on derivative contracts	(140		)	(140		)	(136		)	276			(140		)
Total other comprehensive loss, before tax	(303		)	(303		)	(322		)	625			(303		)
Income tax benefit related to items of other comprehensive loss	3			3			1			(4		)	3
Other comprehensive loss, net of tax	(300		)	(300		)	(321		)	621			(300		)
Total comprehensive loss	$	(431	)	$	(131	)	$	(525	)	$	656		$	(431	)

Condensed Cash Flow Statement

Condensed Consolidating Statement of Cash Flows
For the six months ended December 29, 2017
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	(279	)	$	108		$	2,560		$	(74	)	$	2,315
Cash flows from investing activities
Purchases of property, plant and equipment	—			(113		)	(303		)	—			(416		)
Proceeds from the sale of property, plant and equipment	—			—			10			—			10
Acquisitions, net of cash acquired	—			(93		)	(6		)	—			(99		)
Purchases of investments	—			(11		)	(46		)	—			(57		)
Proceeds from sale of investments	—			—			29			—			29
Proceeds from maturities of investments	—			—			16			—			16
Notes receivable issuances to Flash Ventures	—			—			(621		)	—			(621		)
Notes receivable proceeds from Flash Ventures	—			—			112			—			112
Strategic investments and other, net	—			(1		)	20			—			19
Intercompany loan from consolidated affiliates	1,395			—			—			(1,395		)	—
Advances from (to) parent and consolidated affiliates	65			(65		)	—			—			—
Net cash provided by (used in) investing activities	1,460			(283		)	(789		)	(1,395		)	(1,007		)
Cash flows from financing activities
Issuance of stock under employee stock plans	99			—			—			—			99
Taxes paid on vested stock awards under employee stock plans	(67		)	—			—			—			(67		)
Dividends paid to shareholders	(295		)	—			—			—			(295		)
Settlement of debt hedge contracts	28			—			—			—			28
Repayment of debt	(4,114		)	—			—			—			(4,114		)
Proceeds from debt	2,963			—			—			—			2,963
Debt issuance costs	(5		)	—			—			—			(5		)
Intercompany loan to consolidated affiliates	—			(54		)	(1,341		)	1,395			—
Change in investment in consolidated subsidiaries	214			204			(492		)	74			—
Net cash provided by (used in) financing activities	(1,177		)	150			(1,833		)	1,469			(1,391		)
Effect of exchange rate changes on cash	—			—			1			—			1
Net increase (decrease) in cash and cash equivalents	4			(25		)	(61		)	—			(82		)
Cash and cash equivalents, beginning of year	18			1,212			5,124			—			6,354
Cash and cash equivalents, end of period	$	22		$	1,187		$	5,063		$	—		$	6,272

Condensed Consolidating Statement of Cash Flows
For the six months ended December 30, 2016
	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Total Company
	(in millions)
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	(256	)	$	211		$	1,443		$	102		$	1,500
Cash flows from investing activities
Purchases of property, plant and equipment	—			(136		)	(194		)	—			(330		)
Proceeds from the sale of property, plant and equipment	—			—			1			—			1
Purchases of investments	—			—			(239		)	—			(239		)
Proceeds from sale of investments	—			—			55			—			55
Proceeds from maturities of investments	—			—			279			—			279
Investments in Flash Ventures	—			—			(20		)	—			(20		)
Notes receivable issuances to Flash Ventures	—			—			(309		)	—			(309		)
Notes receivable proceeds from Flash Ventures	—			—			259			—			259
Strategic investments and other, net	—			—			(12		)	—			(12		)
Intercompany loans from consolidated affiliates	770			40			—			(810		)	—
Advances from (to) consolidated affiliates	293			(285		)	—			(8		)	—
Net cash provided by (used in) investing activities	1,063			(381		)	(180		)	(818		)	(316		)
Cash flows from financing activities
Issuance of stock under employee stock plans	90			—			—			—			90
Taxes paid on vested stock awards under employee stock plans	(40		)	—			—			—			(40		)
Excess tax benefits from employee stock plans	56			—			—			—			56
Proceeds from acquired call option	—			—			61			—			61
Dividends paid to shareholders	(284		)	—			—			—			(284		)
Repayment of debt	(4,767		)	(2,995		)	(492		)	—			(8,254		)
Proceeds from debt	3,992			—			—			—			3,992
Debt issuance costs	(7		)	—			—			—			(7		)
Intercompany loan to consolidated affiliates	—			(5,966		)	5,156			810			—
Change in investment in consolidated subsidiaries	199			8,808			(8,913		)	(94		)	—
Net cash used in financing activities	(761		)	(153		)	(4,188		)	716			(4,386		)
Effect of exchange rate changes on cash	—			—			(9		)	—			(9		)
Net increase (decrease) in cash and cash equivalents	46			(323		)	(2,934		)	—			(3,211		)
Cash and cash equivalents, beginning of year	—			1,206			6,945			—			8,151
Cash and cash equivalents, end of period	$	46		$	883		$	4,011		$	—		$	4,940