Business Segments, Geographic Information, and Concentrations of Risk (Tables)

12 Months Ended

Jul. 01, 2022

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table summarizes the operating performance of the Company’s reportable segments:

	2022			2021			2020
	(in millions, except percentages)
Net revenue:
Flash	$	9,753		$	8,706		$	7,769
HDD	9,040			8,216			8,967
Total net revenue	$	18,793		$	16,922		$	16,736
Gross profit:
Flash	$	3,527		$	2,611		$	1,903
HDD	2,661			2,221			2,602
Total gross profit for segments	6,188			4,832			4,505
Unallocated corporate items:
Amortization of acquired intangible assets	(66)			(331)			(610)
Stock-based compensation expense	(48)			(55)			(51)
Contamination related charges	(207)			—			—
Recoveries from a power outage incident	7			75			(68)
Other	—			—			5
Total unallocated corporate items	(314)			(311)			(724)
Consolidated gross profit	$	5,874		$	4,521		$	3,781
Gross margin:
Flash	36.2		%	30.0		%	24.5		%
HDD	29.4		%	27.0		%	29.0		%
Consolidated gross margin	31.3		%	26.7		%	22.6		%

Schedule of Goodwill

The following table provides a summary of goodwill activity for the period:

	Flash		HDD		Total
	(in millions)
Balance at July 2, 2021	$	5,738	$	4,328	$	10,066
Reduction in goodwill in connection with disposition of business	(14)		—		(14)
Foreign currency translation adjustment	(6)		(5)		(11)
Balance at July 1, 2022	$	5,718	$	4,323	$	10,041

Schedule of Disaggregation of Revenue

The Company’s disaggregated revenue information is as follows:

	2022		2021		2020
	(in millions)
Revenue by End Market
Cloud	$	8,017	$	5,723	$	7,018
Client	7,076		7,281		6,335
Consumer	3,700		3,918		3,383
Total Revenue	$	18,793	$	16,922	$	16,736

Schedule of Revenue from External Customers by Geographic Areas

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 and the Middle East. The following tables summarize the Company’s operations by geographic area:

	2022		2021		2020
	(in millions)
Net revenue (1)
United States	$	5,411	$	3,789	$	4,679
China	4,525		4,339		4,075
Hong Kong	3,645		3,624		2,592
Rest of Asia	1,884		1,492		1,699
Europe, Middle East and Africa	2,872		3,061		2,926
Other	456		617		765
Total	$	18,793	$	16,922	$	16,736

(1)    Net revenue is attributed to geographic regions based on the ship-to location of the customer. License and royalty revenue is attributed to countries based upon the location of the headquarters of the licensee.

Schedule of Long-lived Assets by Geographic Areas

	2022		2021
	(in millions)
Long-lived assets (1)
United States	$	1,130	$	1,068
Malaysia	831		632
China	441		395
Thailand	816		651
Rest of Asia	406		398
Europe, Middle East and Africa	46		44
Total	$	3,670	$	3,188

(1)    Long-lived assets include property, plant and equipment and are attributed to the geographic location in which they are located.