10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 28, 2018

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from:                      to                     

Commission File Number 001-31560

SEAGATE TECHNOLOGY PUBLIC LIMITED COMPANY

(Exact name of registrant as specified in its charter)

Ireland	98-0648577
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

38/39 Fitzwilliam Square

Dublin 2, Ireland

(Address of principal executive offices)

Telephone: (353) (1) 234-3136

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  ☒    No   ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer:	☒	Accelerated filer:	☐
Non-accelerated filer:	☐	Smaller reporting company:	☐
		Emerging growth company:	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

    Yes  ☐    No  ☒

As of January 29, 2019, 281,740,077 of the registrant’s ordinary shares, par value $0.00001 per share, were issued and outstanding.

INDEX

SEAGATE TECHNOLOGY PLC

		PAGE NO.
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements		3
	Condensed Consolidated Balance Sheets—December 28, 2018 (Unaudited) and June  29, 2018		4
	Condensed Consolidated Statements of Operations—Three and Six Months Ended December 28, 2018 and December 29, 2017 (Unaudited)		5
	Condensed Consolidated Statements of Comprehensive Income—Three and Six Months Ended December 28, 2018 and December 29, 2017 (Unaudited)		6
	Condensed Consolidated Statements of Cash Flows—Six Months Ended December  28, 2018 and December 29, 2017 (Unaudited)		7
	Condensed Consolidated Statement of Shareholders’ Equity—Six Months Ended December 28, 2018 (Unaudited)		8
	Notes to Condensed Consolidated Financial Statements (Unaudited)		9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		38
Item 4.	Controls and Procedures		39
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings		39
Item 1A.	Risk Factors		39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		40
Item 3.	Defaults Upon Senior Securities		40
Item 4.	Mine Safety Disclosures		40
Item 5.	Other Information		40
Item 6.	Exhibits		41
	SIGNATURES		42

2

PART I

FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

Table of Contents	Page
Condensed Consolidated Balance Sheets		4
Condensed Consolidated Statements of Operations		5
Condensed Consolidated Statements of Comprehensive Income		6
Condensed Consolidated Statements of Cash Flows		7
Condensed Consolidated Statement of Shareholders’ Equity		8
Notes to Condensed Consolidated Financial Statements		9
Note 1.    Basis of Presentation and Summary of Significant Accounting Policies		9
Note 2.   Balance Sheet Information		12
Note 3.   Debt		14
Note 4.   Income Taxes		15
Note 5.   Goodwill and Other Intangible Assets		16
Note 6.   Restructuring and Exit Costs		17
Note 7.   Derivative Financial Instruments		18
Note 8.   Fair Value		20
Note 9.   Equity		24
Note 10.   Revenue		25
Note 11.   Share-based Compensation		25
Note 12.   Guarantees		25
Note 13.   Earnings Per Share		26
Note 14.   Legal, Environmental and Other Contingencies		27
Note 15.   Commitments		28
Note 16.   Subsequent Events		28

See Notes to Condensed Consolidated Financial Statements.

3

SEAGATE TECHNOLOGY PLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

	December 28, 2018			June 29, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	1,357		$	1,853
Accounts receivable, net		1,058			1,184
Inventories		1,097			1,053
Other current assets		164			220
Total current assets		3,676			4,310
Property, equipment and leasehold improvements, net		1,823			1,792
Investment in debt security		1,300			1,275
Goodwill		1,237			1,237
Other intangible assets, net		149			188
Deferred income taxes		416			417
Other assets, net		188			191
Total Assets	$	8,789		$	9,410
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,442		$	1,728
Accrued employee compensation		164			253
Accrued warranty		105			112
Current portion of long-term debt		—			499
Accrued expenses		589			598
Total current liabilities		2,300			3,190
Long-term accrued warranty		117			125
Long-term accrued income taxes		6			10
Other non-current liabilities		108			100
Long-term debt, less current portion		4,324			4,320
Total Liabilities		6,855			7,745
Commitments and contingencies (See Notes 12, 14 and 15)
Shareholders’ Equity:
Ordinary shares and additional paid-in capital		6,457			6,377
Accumulated other comprehensive loss		(21	)		(16	)
Accumulated deficit		(4,502	)		(4,696	)
Total Equity		1,934			1,665
Total Liabilities and Equity	$	8,789		$	9,410

The information as of June 29, 2018 was derived from the Company’s audited Consolidated Balance Sheet as of June 29, 2018.

See Notes to Condensed Consolidated Financial Statements.

4

SEAGATE TECHNOLOGY PLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

(Unaudited)

	For the Three Months Ended						For the Six Months Ended
	December 28, 2018			December 29, 2017			December 28, 2018			December 29, 2017
Revenue	$	2,715		$	2,914		$	5,706		$	5,546
Cost of revenue		1,921			2,037			3,999			3,933
Product development		246			250			512			513
Marketing and administrative		120			142			235			287
Amortization of intangibles		5			19			11			41
Restructuring and other, net		7			33			30			84
Total operating expenses		2,299			2,481			4,787			4,858
Income from operations		416			433			919			688
Interest income		22			6			46			13
Interest expense		(56	)		(61	)		(114	)		(122	)
Other, net		16			(7	)		15			(20	)
Other expense, net		(18	)		(62	)		(53	)		(129	)
Income before income taxes		398			371			866			559
Provision for income taxes		14			212			32			219
Net income	$	384		$	159		$	834		$	340
Net income per share:
Basic	$	1.35		$	0.55		$	2.92		$	1.18
Diluted		1.34			0.55			2.88			1.17
Number of shares used in per share calculations:
Basic		285			288			286			289
Diluted		287			291			290			291
Cash dividends declared per ordinary share	$	0.63		$	0.63		$	1.26		$	1.26

See Notes to Condensed Consolidated Financial Statements.

5

SEAGATE TECHNOLOGY PLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In millions)

(Unaudited)

	For the Three Months Ended					For the Six Months Ended
	December 28, 2018			December 29, 2017		December 28, 2018			December 29, 2017
Net income	$	384		$	159	$	834		$	340
Other comprehensive income (loss), net of tax:
Cash flow hedges
Change in net unrealized gain (loss) on cash flow hedges		(4	)		—		(1	)		—
Less: reclassification for amounts included in net income		(1	)		—		(2	)		—
Net change		(5	)		—		(3	)		—
Marketable securities
Change in net unrealized gain (loss) on available-for-sale debt securities		—			—		—			—
Less: reclassification for amounts included in net income		—			—		—			—
Net change		—			—		—			—
Post-retirement plans
Change in unrealized gain (loss) on post-retirement plans		—			—		—			—
Less: reclassification for amounts included in net income		—			—		—			—
Net change		—			—		—			—
Foreign currency translation adjustments		(4	)		2		(2	)		6
Total other comprehensive income (loss), net of tax		(9	)		2		(5	)		6
Comprehensive income	$	375		$	161	$	829		$	346

See Notes to Condensed Consolidated Financial Statements.

6

SEAGATE TECHNOLOGY PLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	For the Six Months Ended
	December 28, 2018			December 29, 2017
OPERATING ACTIVITIES
Net income	$	834		$	340
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		272			318
Share-based compensation		45			59
Deferred income taxes		1			204
Other non-cash operating activities, net		(44	)		3
Changes in operating assets and liabilities:
Accounts receivable, net		135			145
Inventories		(47	)		(32	)
Accounts payable		(240	)		59
Accrued employee compensation		(89	)		(54	)
Accrued expenses, income taxes and warranty		(16	)		3
Other assets and liabilities		24			42
Net cash provided by operating activities		875			1,087
INVESTING ACTIVITIES
Acquisition of property, equipment and leasehold improvements		(304	)		(201	)
Proceeds from settlement of foreign currency forward exchange contracts		66			—
Proceeds from sale of strategic investments		10			—
Proceeds from sale of properties previously classified as held for sale		6			—
Proceeds from sale of property and equipment		—			2
Purchases of strategic investments		(8	)		—
Other investing activities, net		—			(11	)
Net cash used in investing activities		(230	)		(210	)
FINANCING ACTIVITIES
Redemption and repurchase of debt		(499	)		(152	)
Dividends to shareholders		(361	)		(366	)
Repurchases of ordinary shares		(286	)		(361	)
Taxes paid related to net share settlement of equity awards		(30	)		(21	)
Proceeds from issuance of ordinary shares under employee stock plans		35			35
Net cash used in financing activities		(1,141	)		(865	)
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash		(1	)		5
(Decrease) increase in cash, cash equivalents and restricted cash		(497	)		17
Cash, cash equivalents and restricted cash at the beginning of the period		1,857			2,543
Cash, cash equivalents and restricted cash at the end of the period	$	1,360		$	2,560

See Notes to Condensed Consolidated Financial Statements.

7

SEAGATE TECHNOLOGY PLC

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

For the Six Months Ended December 28, 2018

(In millions)

(Unaudited)

	Number of Ordinary Shares			Par Value of Shares		Additional Paid-in Capital		Accumulated Other Comprehensive Loss			Accumulated Deficit			Total
Balance at June 29, 2018		287		$	—	$	6,377	$	(16	)	$	(4,696	)	$	1,665
Cumulative effect of adoption of new revenue standard (Note 1)												34			34
Net income												834			834
Other comprehensive loss									(5	)					(5	)
Issuance of ordinary shares under employee stock plans		3					35								35
Repurchases of ordinary shares		(6	)									(286	)		(286	)
Tax withholding related to vesting of restricted stock units		(1	)									(30	)		(30	)
Dividends to shareholders												(358	)		(358	)
Share-based compensation							45								45
Balance at December 28, 2018		283		$	—	$	6,457	$	(21	)	$	(4,502	)	$	1,934

See Notes to Condensed Consolidated Financial Statements.

8

SEAGATE TECHNOLOGY PLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation and Summary of Significant Accounting Policies

Organization

Seagate Technology plc (the “Company”) is a leading provider of data storage technology and solutions. Its principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, the Company produces a broad range of data storage products including solid state drives (“SSDs”) and storage subsystems.

Hard disk drives are devices that store digitally encoded data on rapidly rotating disks with magnetic surfaces. Disk drives continue to be the primary medium of mass data storage due to their performance attributes, high quality and cost effectiveness. Complementing existing data center storage architecture, solid-state storage devices use integrated circuit assemblies as memory to store data, and most SSDs use NAND flash memory.

The Company’s HDD products are designed for mission critical and nearline applications in enterprise servers and storage systems; edge compute applications, where its products are designed primarily for desktop and mobile computing; and edge non-compute applications, where its products are designed for a wide variety of end user devices such as portable external storage systems, surveillance systems, digital video recorders (“DVRs”), network-attached storage (“NAS”), and gaming consoles. The Company’s SSD products mainly include serial attached SCSI (“SAS”) and Non-Volatile Memory Express (“NVMe”) SSDs.

The Company’s enterprise data solutions (formerly referred to as the “cloud systems and solutions”) portfolio includes modular original equipment manufacturers (“OEM”) storage systems and scale-out storage servers.

Basis of Presentation and Consolidation

The Company’s unaudited condensed consolidated financial statements include the accounts of the Company and all its wholly-owned and majority-owned subsidiaries, after elimination of intercompany transactions and balances.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its condensed consolidated financial statements. The condensed consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the condensed consolidated financial position, results of operations, comprehensive income, cash flows and shareholders’ equity for the periods presented. Such adjustments are of a normal and recurring nature.

The Company’s consolidated financial statements for the fiscal year ended June 29, 2018, are included in its Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission (“SEC”) on August 3, 2018. The Company believes that the disclosures included in the unaudited condensed consolidated financial statements, when read in conjunction with its consolidated financial statements as of June 29, 2018, and the notes thereto, are adequate to make the information presented not misleading.

The results of operations for the three and six months ended December 28, 2018 are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the Company’s fiscal year ending June 28, 2019. The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Both the three and six months ended December 28, 2018 and the three and six months ended December 29, 2017 consisted of 13 weeks and 26 weeks, respectively. Fiscal year 2019, which ends on June 28, 2019, and fiscal year 2018, which ended on June 29, 2018, are both comprised of 52 weeks. The fiscal quarters ended December 28, 2018, September 28, 2018, and December 29, 2017, are also referred to herein as the “December 2018 quarter”, the “September 2018 quarter” and the “December 2017 quarter”, respectively.

Summary of Significant Accounting Policies

Except for the change in the Company’s revenue recognition policy described below, there have been no material changes to the Company’s significant accounting policies disclosed in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies of “Financial Statements and Supplementary Data” contained in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2018, as filed with the SEC on August 3, 2018.

9

Revenue Recognition

Effective June 30, 2018, the Company adopted a new revenue recognition policy in accordance with Accounting Standard Codification (“ASC”) 606, Revenue from Contracts with Customers, using the modified retrospective transition approach as discussed in the section titled Recently Adopted Accounting Pronouncements in this Note 1. Prior to fiscal year 2019, the revenue recognition policy was based on ASC 605, Revenue Recognition. Under ASC 606, the Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, the Company satisfies a performance obligation.

Revenue from sales of products is generally recognized upon transfer of control to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products, net of sales taxes. This typically occurs upon shipment from the Company. When applicable, the Company includes shipping charges billed to customers in Revenue and includes the related shipping costs in Cost of revenue on the Company’s Condensed Consolidated Statements of Operations.

The Company records estimated variable consideration at the time of revenue recognition as a reduction to net revenue. Variable consideration generally consists of sales incentive programs, such as price protection and volume incentives aimed at increasing customer demand. For OEM sales, rebates are typically established by estimating the most likely amount of consideration expected to be received based on an OEM customer’s volume of purchases from Seagate or other agreed upon rebate programs. For the distribution and retailing channel, these programs typically involve estimating the most likely amount of rebates related to a customer’s level of sales, order size, advertising or point of sale activity as well as the expected value of price protection adjustments based on historical analysis and forecasted pricing environment. Marketing development program costs are accrued and recorded as a reduction to revenue at the same time that the related revenue is recognized.

Practical Expedient and Exemptions

The Company elected a practical expedient to expense sales commissions when the commissions are incurred because the amortization period would have been one year or less. These costs are recorded as Marketing and administrative on the Company’s Condensed Consolidated Statements of Operations.

Recently Issued Accounting Pronouncements

In February 2016 and July 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02 (ASC Topic 842), Leases ASU 2018-10, Codification Improvements to Topic 842, and Leases, ASU 2018-11, Leases (ASC Topic 842), Target Improvements, respectively. These ASUs amend a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The Company plans to adopt this guidance in the first quarter of fiscal year 2020. The Company is in the process of assessing the impact of these ASUs on its condensed consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 (ASC Topic 326), Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU amends the requirement on the measurement and recognition of expected credit losses for financial assets held. The Company is required to adopt this guidance in the first quarter of fiscal year 2021. Early adoption is permitted in the first quarter of fiscal year 2020. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02 (ASC Topic 220), Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU was issued following the enactment of the U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”) and permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The Company is required to adopt this guidance in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15 (ASC Subtopic 350-40), Intangibles - Goodwill and Other - Internal-Use Software - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU aligns the accounting for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software. The Company is required to adopt the guidance in the first quarter of fiscal year 2021. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements.

10

Recently Adopted Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09 (ASC Topic 606), Revenue from Contracts with Customers, and FASB also issued certain interpretive clarifications on this new guidance which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the revenue recognition guidance under ASC 605. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This ASU became effective and was adopted by the Company in the September 2018 quarter retrospectively with a cumulative adjustment to accumulated deficit at the date of adoption (“modified retrospective transition approach”). The Company has completed the adoption and implemented policies, processes and controls to support the new standard’s measurement and disclosure requirements.

The Company applied the ASC 606 using a modified retrospective transition approach to all contracts that were not completed as of June 29, 2018. Results for reporting periods beginning June 30, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the historical accounting standard. As a result of the adoption, the Company identified a change in revenue recognition timing on its product sales made to certain retail customers and started to recognize revenue when the Company transfers control to the applicable customers rather than deferring recognition until those customers sell the products. In addition, the Company established accruals for the variable consideration related to customer incentives on these arrangements. On the date of initial adoption, the Company removed the related deferred income on the product sales made to these customers and recorded estimates of the accrual for variable consideration through a cumulative adjustment to accumulated deficit. The cumulative effect of the change to the Company’s Condensed Consolidated Balance Sheet from the adoption of ASC 606 was as follows:

(Dollars in millions)	As of June 29, 2018			Effect of adoption of ASC 606			As of June 30, 2018
Accounts receivable, net	$	1,184		$	9		$	1,193
Inventory	$	1,053		$	(9	)	$	1,044
Accrued expenses	$	598		$	(34	)	$	564
Accumulated deficit	$	(4,696	)	$	34		$	(4,662	)

The impact of applying the new accounting standard on the Company’s condensed consolidated financial statements for the three and six months ended December 28, 2018 was not material.

In January 2016, the FASB issued ASU 2016-01 (ASC Subtopic 825-10), Financial Instruments—Overall Recognition and Measurement of Financial Assets and Financial Liabilities, as amended by ASU 2018-03, Financial Instruments—Overall: Technical Correction and Improvements, issued in February 2018. The amendments in these ASUs require entities to measure all equity investments at fair value with changes recognized through net income. Additionally, the amendments eliminate certain disclosure requirements related to financial instruments measured at amortized cost and add disclosures related to the measurement categories of financial assets and financial liabilities. These ASUs became effective and were adopted by the Company in the September 2018 quarter. For equity investments without readily determinable fair value, the Company elected the measurement alternative for measurement of equity investments, defined as cost, less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer until the equity investments’ fair value becomes readily determinable. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements and disclosures.

In January 2017, the FASB issued ASU 2017-01 (ASC Topic 805), Business Combination: Clarifying the Definition of a Business. The amendments in this ASU change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The Company adopted the guidance in the September 2018 quarter. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements and disclosures.

In May 2017, the FASB issued ASU 2017-09 (ASC Topic 718), Stock Compensation: Scope of Modification Accounting. The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company adopted the guidance in the September 2018 quarter. The adoption of this guidance had no impact on its condensed consolidated financial statements and disclosures.

11

2. Balance Sheet Information

Available-for-sale Debt Securities

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of December 28, 2018:

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale debt securities:
Money market funds	$	454	$	—	$	454
Time deposits and certificates of deposit		426		—		426
Total	$	880	$	—	$	880
Included in Cash and cash equivalents					$	877
Included in Other current assets						3
Total					$	880

As of December 28, 2018, the Company’s Other current assets included $3 million in restricted cash and investments held as collateral at banks for various performance obligations.

As of December 28, 2018, the Company had no material available-for-sale debt securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale debt securities were other-than-temporarily impaired as of December 28, 2018.

The fair value and amortized cost of the Company’s debt securities investments classified as available-for-sale as of December 28, 2018, by remaining contractual maturity were as follows:

(Dollars in millions)	Amortized Cost		Fair Value
Due in less than 1 year	$	880	$	880
Due in 1 to 5 years		—		—
Due in 6 to 10 years		—		—
Thereafter		—		—
Total	$	880	$	880

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of June 29, 2018:

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale securities:
Money market funds	$	621	$	—	$	621
Time deposits and certificates of deposit		395		—		395
Total	$	1,016	$	—	$	1,016
Included in Cash and cash equivalents					$	1,012
Included in Other current assets						4
Total					$	1,016

As of June 29, 2018, the Company’s Other current assets included $4 million in restricted cash and investments held as collateral at banks for various performance obligations.

As of June 29, 2018, the Company had no material available-for-sale securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale securities were other-than-temporarily impaired as of June 29, 2018.

12

Cash, Cash Equivalents and Restricted Cash

The following table provides a summary of cash, cash equivalents and restricted cash reported within the Company’s Condensed Consolidated Balance Sheets that reconciles to the corresponding amount in its Condensed Consolidated Statements of Cash Flows:

(Dollars in millions)	December 28, 2018		June 29,      2018		December 29, 2017		June 30,      2017
Cash and cash equivalents	$	1,357	$	1,853	$	2,556	$	2,539
Restricted cash included in Other current assets		3		4		4		4
Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows	$	1,360	$	1,857	$	2,560	$	2,543

Inventories

The following table provides details of the inventory balance sheet item:

(Dollars in millions)	December 28, 2018		June 29,      2018
Raw materials and components	$	337	$	329
Work-in-process		281		347
Finished goods		479		377
Total inventories	$	1,097	$	1,053

Property, Equipment and Leasehold Improvements, net

The components of property, equipment and leasehold improvements, net, were as follows:

(Dollars in millions)	December 28, 2018			June 29,      2018
Property, equipment and leasehold improvements	$	9,689		$	9,525
Accumulated depreciation and amortization		(7,866	)		(7,733	)
Property, equipment and leasehold improvements, net	$	1,823		$	1,792

Investment in Debt Security

As of December 28, 2018 and June 29, 2018, the Company had approximately $1.3 billion investment in non-convertible preferred stock of Toshiba Memory Corporation (“TMC”, formerly known as “K.K. Pangea”). The investment, with a contractual maturity of six years starting from May 31, 2018, is accounted for as a held-to-maturity debt security, carried at cost and adjusted for amortization of transaction costs into interest income. Additionally, the debt security has a contractual payment-in-kind (“PIK”) income which will be paid in cash upon redemption of the investment. PIK income computed at the contractual rate is accrued into Interest income in the Company’s Condensed Consolidated Statements of Operations and added to the carrying value of the Investment in debt security on its Condensed Consolidated Balance Sheets. For the three and six months ended December 28, 2018, the PIK income earned was $15 million and $31 million, respectively. There was no other-than-temporary impairment identified for the three and six months ended December 28, 2018. Please refer to Note 8 - Fair Value for more details.

Accrued Expenses

The following table provides details of the accrued expenses balance sheet item:

(Dollars in millions)	December 28, 2018		June 29,      2018
Dividends payable	$	178	$	181
Other accrued expenses		411		417
Total accrued expenses	$	589	$	598

13

Accumulated Other Comprehensive Income (Loss) (“AOCI”)

The components of AOCI, net of tax, were as follows:

(Dollars in millions)	Unrealized Gains/(Losses) on Cash Flow Hedges			Unrealized Gains/(Losses) on Available-for-Sale Debt Securities		Unrealized Gains/(Losses) on Post- Retirement Plans			Foreign Currency Translation Adjustments			Total
Balance at June 29, 2018	$	—		$	—	$	(4	)	$	(12	)	$	(16	)
Other comprehensive income (loss) before reclassifications		(1	)		—		—			(2	)		(3	)
Amounts reclassified from AOCI		(2	)		—		—			—			(2	)
Other comprehensive income (loss)		(3	)		—		—			(2	)		(5	)
Balance at December 28, 2018	$	(3	)	$	—	$	(4	)	$	(14	)	$	(21	)
Balance at June 30, 2017	$	—		$	—	$	(5	)	$	(12	)	$	(17	)
Other comprehensive income (loss) before reclassifications		—			—		—			6			6
Amounts reclassified from AOCI		—			—		—			—			—
Other comprehensive income (loss)		—			—		—			6			6
Balance at December 29, 2017	$	—		$	—	$	(5	)	$	(6	)	$	(11	)

3. Debt

Short-Term Borrowings

The credit agreement entered into by the Company and its subsidiary Seagate HDD Cayman on January 18, 2011 and subsequently amended (the “Revolving Credit Facility”) provides the Company with a $700 million senior secured revolving credit facility. The term of the Revolving Credit Facility is through January 15, 2020. The loans made under the Revolving Credit Facility will bear interest at a rate of LIBOR plus a variable margin that will be determined based on the corporate credit rating of the Company. The Company and certain of its material subsidiaries fully and unconditionally guarantee the Revolving Credit Facility. The Revolving Credit Facility is available for cash borrowings, subject to compliance with certain covenants and other customary conditions to borrowing, and for the issuance of letters of credit up to a sub-limit of $75 million.

The Revolving Credit Facility, as amended, includes three financial covenants: (1) minimum cash, cash equivalents and marketable securities; (2) a fixed charge coverage ratio; and (3) a net leverage ratio. The Company was in compliance with the modified covenants as of December 28, 2018 and expects to be in compliance for the next 12 months.

As of December 28, 2018, no borrowings had been drawn or letters of credit utilized under the Revolving Credit Facility.

Long-Term Debt

$800 million Aggregate Principal Amount of 3.75% Senior Notes due November 2018 (the “2018 Notes”). The interest on the 2018 Notes was payable semi-annually on May 15 and November 15 of each year. The issuer under the 2018 Notes was Seagate HDD Cayman, and the obligations under the 2018 Notes were fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. During the three and six months ended December 29, 2017, the Company repurchased $128 million and $150 million aggregate principal amount of the 2018 Notes, respectively, for cash at a premium to their principal amount, plus accrued and unpaid interest. The Company recorded a loss of approximately $2 million on repurchases during the three and six months ended December 29, 2017 which is included in Other, net on the Company’s Condensed Consolidated Statements of Operations. On November 15, 2018, the 2018 Notes matured and the Company repaid the entire outstanding principal amount of $499 million, plus accrued and unpaid interest.

$750 million Aggregate Principal Amount of 4.25% Senior Notes due March 2022 (the “2022 Notes”). The interest on the 2022 Notes is payable semi-annually on March 1 and September 1 of each year. The issuer under the 2022 Notes is Seagate HDD Cayman, and the obligations under the 2022 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$1 billion Aggregate Principal Amount of 4.75% Senior Notes due June 2023 (the “2023 Notes”). The interest on the 2023 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2023 Notes is Seagate HDD Cayman, and the obligations under the 2023 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

14

$500 million Aggregate Principal Amount of 4.875% Senior Notes due March 2024 (the “2024 Notes”). The interest on the 2024 Notes is payable semi-annually on March 1 and September 1 of each year. The issuer under the 2024 Notes is Seagate HDD Cayman, and the obligations under the 2024 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$1 billion Aggregate Principal Amount of 4.75% Senior Notes due January 2025 (the “2025 Notes”). The interest on the 2025 Notes is payable semi-annually on January 1 and July 1 of each year. The issuer under the 2025 Notes is Seagate HDD Cayman, and the obligations under the 2025 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$700 million Aggregate Principal Amount of 4.875% Senior Notes due June 2027 (the “2027 Notes”). The interest on the Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2027 Notes is Seagate HDD Cayman, and the obligations under the 2027 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$500 million Aggregate Principal Amount of 5.75% Senior Notes due December 2034 (the “2034 Notes”). The interest on the 2034 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2034 Notes is Seagate HDD Cayman, and the obligations under the 2034 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

At December 28, 2018, future principal payments on long-term debt were as follows (in millions):

Fiscal Year	Amount
Remainder of 2019	$	—
2020		—
2021		—
2022		750
2023		951
Thereafter		2,662
Total	$	4,363

4. Income Taxes

The Company recorded income tax provisions of $14 million and $32 million in the three and six months ended December 28, 2018, respectively. The income tax provision for the three and six months ended December 28, 2018 included approximately $5 million and $4 million of net discrete tax benefits, respectively, primarily associated with the recognition of previously unrecognized tax benefits related to the expiration of certain statutes of limitation.

The Company’s income tax provision recorded for the three and six months ended December 28, 2018 differed from the provision for income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain deferred tax assets.

During the six months ended December 28, 2018, the Company’s unrecognized tax benefits excluding interest and penalties decreased by approximately $20 million to $40 million. The unrecognized tax benefits that, if recognized, would impact the effective tax rate were $40 million at December 28, 2018, subject to certain future valuation allowance reversals. During the twelve months beginning December 29, 2018, the Company expects that its unrecognized tax benefits could be reduced by approximately $7 million, primarily as a result of the expiration of certain statutes of limitation.

The Company recorded income tax provisions of $212 million and $219 million in the three and six months ended December 29, 2017, respectively. The income tax provision for the three and six months ended December 29, 2017 included approximately $197 million of net discrete tax expense, primarily associated with the revaluation of U.S. deferred tax assets as a result of the enactment of the Tax Act on December 22, 2017, partially offset by the recognition of previously unrecognized tax benefits associated with the expiration of certain statutes of limitation.

The Company’s income tax provision recorded for the three and six months ended December 29, 2017 differed from the provision for income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a reduction in the net U.S. deferred tax assets associated with revaluation to a lower U.S. tax rate.

15

On December 22, 2017, the Tax Act was enacted into law in the United States. The Tax Act significantly revises U.S. corporate income tax law by, among other things, lowering U.S. corporate income tax rates from 35% to 21%, implementing a territorial tax system, and imposing a one-time transition tax on deemed repatriated earnings of non-U.S. subsidiaries.

The U.S. tax law changes, including limitations on various business deductions such as executive compensation under Internal Revenue Code §162(m), will not impact the Company’s tax expense in the short-term due to its large net operating loss and tax credit carryovers and associated valuation allowance. The Tax Act’s new international rules, including Global Intangible Low-Taxed Income (“GILTI”), Foreign Derived Intangible Income (“FDII”), and Base Erosion Anti-Avoidance Tax (“BEAT”) are effective beginning in fiscal year 2019. For fiscal year 2019, the Company has included these effects of the Tax Act in its fiscal year 2019 financial statements and has concluded the impact will not be material.

As of the fiscal quarter ended September 28, 2018, pursuant to SEC Staff Accounting Bulletin (“SAB”) 118 (regarding the application of ASC 740, Income Taxes (“ASC 740”) associated with the enactment of the Tax Act), the Company had considered SAB 118 and believed its accounting under ASC 740 for the provisions of the Tax Act was complete.

5. Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the six months ended December 28, 2018, were as follows:

(Dollars in millions)	Amount
Balance at June 29, 2018	$	1,237
Goodwill acquired		—
Goodwill disposed		—
Foreign currency translation effect		—
Balance at December 28, 2018	$	1,237

Other Intangible Assets

Other intangible assets consist primarily of existing technology, customer relationships and trade names acquired in business combinations. Intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets. Amortization is charged to Operating expenses in the Company’s Condensed Consolidated Statements of Operations.

The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of December 28, 2018, was set forth in the following table:

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	250	$	(166	)	$	84		2.1 years
Customer relationships		89		(49	)		40		3.6 years
Trade name		17		(15	)		2		0.9 years
Other intangible assets		42		(19	)		23		2.9 years
Total amortizable other intangible assets	$	398	$	(249	)	$	149		2.6 years

The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 29, 2018, was set forth in the following table:

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	256	$	(145	)	$	111		2.5 years
Customer relationships		89		(42	)		47		4.0 years
Trade name		17		(13	)		4		1.3 years
Other intangible assets		45		(19	)		26		3.0 years
Total amortizable other intangible assets	$	407	$	(219	)	$	188		2.9 years

16

For the three and six months ended December 28, 2018, the amortization expense of other intangible assets was $20 million and $39 million, respectively. For the three and six months ended December 29, 2017, the amortization expense of other intangible assets was $33 million and $69 million, respectively. As of December 28, 2018, expected amortization expense for other intangible assets for each of the next five fiscal years and thereafter was as follows:

(Dollars in millions)	Amount
Remainder of 2019	$	38
2020		57
2021		29
2022		20
2023		5
Thereafter		—
Total	$	149

6. Restructuring and Exit Costs

For the three and six months ended December 28, 2018, the Company recorded restructuring charges of approximately $5 million and $28 million, respectively, comprised primarily of charges related to workforce reduction costs and facilities and other exit costs associated with the restructuring of its workforce. The Company’s significant restructuring plans are described below. All restructuring charges are reported in Restructuring and other, net on the Company’s Condensed Consolidated Statements of Operations.

December 2017 Plan — On December 8, 2017, the Company committed to a restructuring plan (the “December 2017 Plan”) to reduce its cost structure. The December 2017 Plan included reducing the Company’s global headcount by approximately 500 employees. The December 2017 Plan was substantially completed by the end of fiscal year 2018.

July 2017 Plan — On July 25, 2017, the Company committed to a restructuring plan (the “July 2017 Plan”) to reduce its cost structure. The July 2017 Plan included reducing the Company’s global headcount by approximately 600 employees. The July 2017 Plan was substantially completed during fiscal year 2018.

March 2017 Plan — On March 9, 2017, the Company committed to a restructuring plan (the “March 2017 Plan”) in connection with the continued consolidation of its global footprint. The Company closed its design center in Korea, resulting in the reduction of the Company’s headcount by approximately 300 employees. The March 2017 Plan was substantially completed by the end of fiscal year 2017.

July 2016 Plan — On July 11, 2016, the Company committed to a restructuring plan (the “July 2016 Plan”) for continued consolidation of its global footprint across Asia, EMEA and the Americas. The July 2016 Plan included reducing worldwide headcount by approximately 6,500 employees. The July 2016 Plan was substantially completed during fiscal year 2018.

The following table summarizes the Company’s restructuring activities under all of the Company’s active restructuring plans for the six months ended December 28, 2018:

	December 2017 Plan						July 2017 Plan					March 2017 Plan				July 2016 Plan						Other Plans
(Dollars in millions)	Workforce Reduction Costs			Facilities and Other Exit Costs			Workforce Reduction Costs		Facilities and Other Exit Costs			Workforce Reduction Costs		Facilities and Other Exit Costs		Workforce Reduction Costs			Facilities and Other Exit Costs			Workforce Reduction Costs			Facilities and Other Exit Costs			Total
Accrual balances at June 29, 2018	$	5		$	4		$	—	$	1		$	1	$	—	$	2		$	—		$	11		$	18		$	42
Restructuring charges		—			2			—		—			—		—		—			3			21			3			29
Cash payments		(5	)		(3	)		—		—			—		—		(1	)		(3	)		(30	)		(4	)		(46	)
Adjustments		—			(1	)		—		(1	)		—		—		—			—			1			—			(1	)
Accrual balances at December 28, 2018	$	—		$	2		$	—	$	—		$	1	$	—	$	1		$	—		$	3		$	17		$	24
Total costs incurred to date as of December 28, 2018	$	26		$	7		$	37	$	3		$	31	$	3	$	82		$	37		$	262		$	62		$	550
Total expected charges to be incurred as of December 28, 2018	$	—		$	1		$	—	$	—		$	—	$	—	$	—		$	—		$	—		$	1		$	2

Additionally, during the December 2018 quarter, the Company recorded an impairment charge of $2 million on its held for sale land and building, which is included in Restructuring and other, net in the Company’s Condensed Consolidated Statements of Operations. Please refer to Note 8 - Fair Value for more details.

17

7. Derivative Financial Instruments

The Company is exposed to foreign currency exchange rate, interest rate, and to a lesser extent, equity market risks relating to its ongoing business operations. From time to time, the Company enters into cash flow hedges in the form of foreign currency forward exchange contracts in order to manage the foreign currency exchange rate risk on forecasted expenses and investments denominated in foreign currencies. The Company’s accounting policies for these instruments are based on whether the instruments are classified as designated or non-designated hedging instruments. The Company records all derivatives in its Condensed Consolidated Balance Sheets at fair value. The changes in the fair value of highly effective designated cash flow hedges are recorded in Accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments or are not assessed to be highly effective are adjusted to fair value through earnings. The amount of net unrealized loss on cash flow hedges was $3 million as of December 28, 2018 and the amount of net unrealized gain on cash flow hedges was less than $1 million as of June 29, 2018.

The Company de-designates its cash flow hedges when the forecasted hedged transactions affect earnings or it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in Accumulated other comprehensive loss on the Company’s Condensed Consolidated Balance Sheets are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings. The Company recognized a net gain of $1 million and $2 million in Other expense, net related to the loss of hedge designation on discontinued cash flow hedges during the three and six months ended December 28, 2018, respectively. The Company did not recognize any net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three and six months ended December 29, 2017.

Other derivatives not designated as hedging instruments consist of foreign currency forward exchange contracts that the Company uses to hedge the foreign currency exposure on the investment in debt security and forecasted expenditures denominated in currency other than the U.S. dollar. The Company recognizes gains and losses on these contracts, as well as the related costs in Other, net on its Condensed Consolidated Statement of Operations along with foreign currency gains and losses on investment in debt security, deferred gains of derivatives in Other current assets and deferred losses of derivatives in Accrued expenses on the Condensed Consolidated Balance Sheets.

The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of December 28, 2018 and June 29, 2018. All these foreign currency forward exchange contracts mature within 12 months:

	As of December 28, 2018
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
Thai Baht	$	19	$	19
Singapore Dollars		25		25
Chinese Renminbi		20		—
British Pound Sterling		44		12
Japanese Yen		55		1,299
	$	163	$	1,355

	As of June 29, 2018
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
Japanese Yen	$	66	$	1,310

The Company is subject to equity market risks due to changes in the fair value of the notional investments selected by its employees as part of its Non-qualified Deferred Compensation Plan—the Seagate Deferred Compensation Plan (the “SDCP”). In fiscal year 2014, the Company entered into a Total Return Swap (“TRS”) in order to manage the equity market risks associated with the SDCP liabilities. The Company pays a floating rate, based on LIBOR plus an interest rate spread, on the notional amount of the TRS. The TRS is designed to substantially offset changes in the SDCP liability due to changes in the value of the investment options made by employees. As of December 28, 2018, the notional investments underlying the TRS amounted to $103 million. The contract term of the TRS was through January 2020 and is settled on a monthly basis, therefore limiting counterparty performance risk. The Company did not designate the TRS as a hedge. Rather, the Company records all changes in the fair value of the TRS to earnings to offset the market value changes of the SDCP liabilities.

18

The following tables show the Company’s derivative instruments measured at gross fair value as reflected in its Condensed Consolidated Balance Sheets as of December 28, 2018 and June 29, 2018:

	As of December 28, 2018
	Derivative Assets				Derivative Liabilities
(Dollars in millions)	Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts		Other current assets	$	—		Accrued expenses	$	(3	)
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts		Other current assets		—		Accrued expenses		(28	)
Total return swap		Other current assets		1		Accrued expenses		—
Total derivatives			$	1			$	(31	)

	As of June 29, 2018
	Derivative Assets				Derivative Liabilities
(Dollars in millions)	Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts		Other current assets	$	—		Accrued expenses	$	—
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts		Other current assets		10		Accrued expenses		—
Total return swap		Other current assets		—		Accrued expenses		—
Total derivatives			$	10			$	—

The following tables show the effect of the Company’s derivative instruments on its Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and six months ended December 28, 2018:

(Dollars in millions) Derivatives Not Designated as Hedging Instruments	Location of Gain/ (Loss) Recognized in Income on Derivatives	Amount of Gain/ (Loss) Recognized in Income on Derivatives
		For the Three Months			For the Six Months
Foreign currency forward exchange contracts	Other, net	$	(13	)	$	28
Total return swap	Operating expenses	$	(15	)	$	(11	)

(Dollars in millions) Derivatives Designated as Hedging Instruments	Amount of Gain/(Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion)		Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion)				Location of Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)		Amount of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	For the Three Months			For the Six Months					For the Three Months		For the Six Months				For the Three Months		For the Six Months
Foreign currency forward exchange contracts	$	(4	)	$	(1	)		Other expense, net	$	1	$	2		Other expense, net	$	1	$	1

As of December 29, 2017, the Company had no outstanding foreign currency forward exchange contracts and the gross fair value of the TRS reflected in the Condensed Consolidated Balance Sheet was immaterial.

19

The following table shows the effect of the Company’s derivative instruments on its Condensed Consolidated Statement of Comprehensive Income and its Condensed Consolidated Statement of Operations for the three and six months ended December 29, 2017:

(Dollars in millions) Derivatives Not Designated as Hedging Instruments	Location of Gain/ (Loss) Recognized in Income on Derivatives	Amount of Gain/ (Loss) Recognized in Income on Derivatives
		For the Three Months		For the Six Months
Foreign currency forward exchange contracts	Other, net	$	—	$	—
Total return swap	Operating expenses	$	4	$	7

8. Fair Value

Measurement of Fair Value

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

A fair value hierarchy is based on whether the market participant assumptions used in determining fair value are obtained from independent sources (observable inputs) or reflects the Company’s own assumptions of market participant valuation (unobservable inputs). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are:

Level 1 — Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 — Quoted prices for identical assets and liabilities in markets that are inactive; quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; or

Level 3 — Prices or valuations that require inputs that are both unobservable and significant to the fair value measurement.

The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate the Company’s or the counterparty’s non-performance risk is considered in determining the fair values of liabilities and assets, respectively.

Items Measured at Fair Value on a Recurring Basis

The following tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item that are measured at fair value on a recurring basis, excluding accrued interest components, as of December 28, 2018:

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Money market funds	$	454	$	—		$	—	$	454
Time deposits and certificates of deposit		—		423			—		423
Total cash equivalents		454		423			—		877
Restricted cash and investments:
Time deposits and certificates of deposit		—		3			—		3
Derivative Assets		—		1			—		1
Total assets	$	454	$	427		$	—	$	881
Liabilities:
Derivative liabilities	$	—	$	(31	)	$	—	$	(31	)
Total liabilities	$	—	$	(31	)	$	—	$	(31	)

20

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Cash and cash equivalents	$	454	$	423		$	—	$	877
Other current assets		—		4			—		4
Total assets	$	454	$	427		$	—	$	881
Liabilities:
Accrued expenses	$	—	$	(31	)	$	—	$	(31	)
Total liabilities	$	—	$	(31	)	$	—	$	(31	)

The following tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item that are measured at fair value on a recurring basis, excluding accrued interest components, as of June 29, 2018:

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Money market funds	$	620	$	—	$	—	$	620
Time deposits and certificates of deposit		—		392		—		392
Total cash equivalents		620		392		—		1,012
Restricted cash and investments:
Money market funds		1		—		—		1
Time deposits and certificates of deposit		—		3		—		3
Derivative assets		—		10		—		10
Total assets	$	621	$	405	$	—	$	1,026

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Cash and cash equivalents	$	620	$	392	$	—	$	1,012
Other current assets		1		13		—		14
Total assets	$	621	$	405	$	—	$	1,026

The Company classifies items in Level 1 if the financial assets consist of securities for which quoted prices are available in an active market.

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The Company classifies items in Level 2 if the financial asset or liability is valued using observable inputs. The Company uses observable inputs including quoted prices in active markets for similar assets or liabilities. Level 2 assets include: agency bonds, corporate bonds, commercial paper, municipal bonds, U.S. Treasuries, time deposits and certificates of deposit. These debt investments are priced using observable inputs and valuation models which vary by asset class. The Company uses a pricing service to assist in determining the fair value of all of its cash equivalents and short-term investments. For the cash equivalents and short-term investments in the Company’s portfolio, multiple pricing sources are generally available. The pricing service uses inputs from multiple industry standard data providers or other third party sources and various methodologies, such as weighting and models, to determine the appropriate price at the measurement date. The Company corroborates the prices obtained from the pricing service against other independent sources and, as of December 28, 2018, has not found it necessary to make any adjustments to the prices obtained. The Company’s derivative financial instruments are also classified within Level 2. The Company’s derivative financial instruments consist of foreign currency forward exchange contracts and the TRS. The Company recognizes derivative financial instruments in its condensed consolidated financial statements at fair value. The Company determines the fair value of these instruments by considering the estimated amount it would pay or receive to terminate these agreements at the reporting date.

As of December 28, 2018 and June 29, 2018, the Company had no Level 3 assets or liabilities measured at fair value on a recurring basis.

Items Measured at Fair Value on a Non-Recurring Basis

From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives. These strategic investments primarily include cost basis investments representing those where the Company does have the ability to exercise significant influence but does not have control. These investments are included in Other assets, net in the Company’s Condensed Consolidated Balance Sheets, and are periodically analyzed to determine whether or not there are indicators of impairment.

Prior to fiscal year 2019, the Company’s strategic investments in privately-held companies without readily determinable fair values were accounted for under the cost method and were recorded at historical cost at the time of investment, with adjustments to the balance only in the event of impairment. Effective June 30, 2018, the Company adopted ASU 2016-01, Financial Instruments, which changed the way the Company accounts for equity investments, excluding investments that qualify for the equity method of accounting. The Company’s equity investments in privately-held companies without readily determinable fair values are now measured using the measurement alternative, defined by ASC 321, Investments - Equity Securities, as cost, less impairments, and adjusted up or down based on observable price changes in orderly transactions for identical or similar investments of the same issuer. Any adjustments resulting from impairments and/or observable price changes are recorded as Other, net in the Company’s Condensed Consolidated Statements of Operations.

As of December 28, 2018 and June 29, 2018, the carrying value of the Company’s strategic investments were $111 million and $118 million, respectively. For the three and six months ended December 29, 2017, the Company did not have any equity investments accounted for under the cost method that were other-than-temporarily impaired and did not record any impairment charges. For the three and six months ended December 28, 2018, there were no upward or downward adjustments on equity investments as a result of adoption of the measurement alternative during the September 2018 quarter.

As of December 28, 2018 and June 29, 2018, the Company had $24 million and $26 million, respectively, of held for sale land and building (collectively, the “property”) in Asia included in Other current assets on its Condensed Consolidated Balance Sheets. The respective property to be sold met the criteria to be classified as held for sale at the end of fiscal year 2017. During the September 2018 quarter, the Company accepted an offer to sell the property to a third party and recorded an impairment charge of approximately $2 million during the three and six months ended December 28, 2018. The impairment charge was recorded in Restructuring and other, net in the Company’s Condensed Consolidated Statement of Operations. No impairment was identified for the three and six months ended December 29, 2017. The sale is expected to be completed by the end of fiscal year 2019, subject to government approval and customary closing conditions.

Other Fair Value Disclosures

The Company’s investment in a debt security, classified as held-to-maturity, represents shares of non-convertible preferred stock of TMC. This debt security has a maturity date of six years starting from May 31, 2018 and is classified as Investment in debt security on the Company’s Condensed Consolidated Balance Sheets. The debt security is recorded at amortized cost and its fair value approximated the carrying value at June 29, 2018. As of December 28, 2018, the fair value of this investment was $1,272 million with an unrealized loss of $28 million on the carrying value of $1,300 million. There was no other-than-temporary impairment identified for the three and six months ended December 28, 2018. The fair value was determined utilizing Level 2 inputs such as discount rates and yield terms of similar types of securities issued by comparable companies.

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The Company’s debt is carried at amortized cost. The estimated fair value of the Company’s debt is derived using the closing price of the same debt instruments as of the date of valuation, which takes into account the yield curve, interest rates and other observable inputs. Accordingly, these fair value measurements are categorized as Level 2. The following table presents the fair value and amortized cost of the Company’s debt in order of maturity:

	December 28, 2018					June 29, 2018
(Dollars in millions)	Carrying Amount			Estimated Fair Value		Carrying Amount			Estimated Fair Value
3.75% Senior Notes due November 2018	$	—		$	—	$	499		$	501
4.25% Senior Notes due March 2022		749			720		749			743
4.75% Senior Notes due June 2023		951			897		951			942
4.875% Senior Notes due March 2024		497			460		497			489
4.75% Senior Notes due January 2025		975			881		975			936
4.875% Senior Notes due June 2027		695			590		695			650
5.75% Senior Notes due December 2034		489			385		489			441
	$	4,356		$	3,933	$	4,855		$	4,702
Less: debt issuance costs		(32	)		—		(36	)		—
Long-term debt, net of debt issuance costs	$	4,324		$	3,933	$	4,819		$	4,702
Less: current portion of long-term debt, net of debt issuance costs		—			—		(499	)		(501	)
Long-term debt, less current portion	$	4,324		$	3,933	$	4,320		$	4,201

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9. Equity

Share Capital

The Company’s authorized share capital is $13,500 and consists of 1,250,000,000 ordinary shares, par value $0.00001, of which 283,130,419 shares were outstanding as of December 28, 2018, and 100,000,000 preferred shares, par value $0.00001, of which none were issued or outstanding as of December 28, 2018.

Ordinary shares – Holders of ordinary shares are entitled to receive dividends as and when declared by the Company’s board of directors (the “Board of Directors”). Upon any liquidation, dissolution, or winding up of the Company, after required payments are made to holders of preferred shares, any remaining assets of the Company will be distributed ratably to holders of the preferred and ordinary shares. Holders of shares are entitled to one vote per share on all matters upon which the ordinary shares are entitled to vote, including the election of directors.

Preferred shares – The Company may issue preferred shares in one or more series, up to the authorized amount, without shareholder approval. The Board of Directors is authorized to establish from time to time the number of shares to be included in each series, and to fix the rights, preferences and privileges of the shares of each wholly unissued series and any of its qualifications, limitations or restrictions. The Board of Directors can also increase or decrease the number of shares of a series, but not below the number of shares of that series then outstanding, without any further vote or action by the shareholders.

The Board of Directors may authorize the issuance of preferred shares with voting or conversion rights that could harm the voting power or other rights of the holders of the ordinary shares. The issuance of preferred shares, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of the Company and might harm the market price of its ordinary shares and the voting and other rights of the holders of ordinary shares.

Repurchases of Equity Securities

All repurchases are effected as redemptions in accordance with the Company’s Articles of Association.

On October 29, 2018, the Company’s Board of Directors authorized the repurchase of an additional $2.3 billion of its outstanding ordinary shares. As of December 28, 2018, $2.9 billion remained available for repurchase under the existing repurchase authorization limit.

The following table sets forth information with respect to repurchases of the Company’s shares during the six months ended December 28, 2018:

(In millions)	Number of Shares Repurchased		Dollar Value of Shares Repurchased
Repurchases of ordinary shares		6	$	286
Tax withholding related to vesting of equity awards		1		30
Total		7	$	316

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10. Revenue

The following table provides information about disaggregated revenue by sales channel and geographical region for the Company’s single reportable segment:

	For the Three Months Ended				For the Six Months Ended
(Dollars in million)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Revenues by Channel
OEMs	$	1,865	$	1,996	$	4,003	$	3,830
Distributors		443		495		977		929
Retailers		407		423		726		787
Total	$	2,715	$	2,914	$	5,706	$	5,546
Revenues by Geography(1)
Americas	$	731	$	913	$	1,737	$	1,788
EMEA		598		567		1,115		1,039
Asia Pacific		1,386		1,434		2,854		2,719
Total	$	2,715	$	2,914	$	5,706	$	5,546

(1) Revenue is attributed to countries based on bill from locations.

11. Share-based Compensation

The Company recorded approximately $27 million and $45 million of share-based compensation expense during the three and six months ended December 28, 2018, respectively. The Company recorded approximately $27 million and $59 million of share-based compensation expense during the three and six months ended December 29, 2017, respectively.

12. Guarantees

Indemnifications of Officers and Directors

On May 4, 2009, Seagate Technology, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Seagate-Cayman”), then the parent company, entered into a new form of indemnification agreement (the “Revised Indemnification Agreement”) with its officers and directors of Seagate-Cayman and its subsidiaries (each, an “Indemnitee”). The Revised Indemnification Agreement provides indemnification in addition to any of Indemnitee’s indemnification rights under Seagate-Cayman’s Articles of Association, applicable law or otherwise, and indemnifies an Indemnitee for certain expenses (including attorneys’ fees), judgments, fines and settlement amounts actually and reasonably incurred by him or her in any action or proceeding, including any action by or in the right of Seagate-Cayman or any of its subsidiaries, arising out of his or her service as a director, officer, employee or agent of Seagate-Cayman or any of its subsidiaries or of any other entity to which he or she provides services at Seagate-Cayman’s request. However, an Indemnitee shall not be indemnified under the Revised Indemnification Agreement for (i) any fraud or dishonesty in the performance of Indemnitee’s duty to Seagate-Cayman or the applicable subsidiary of Seagate-Cayman or (ii) Indemnitee’s conscious, intentional or willful failure to act honestly, lawfully and in good faith with a view to the best interests of Seagate-Cayman or the applicable subsidiary of Seagate-Cayman. In addition, the Revised Indemnification Agreement provides that Seagate-Cayman will advance expenses incurred by an Indemnitee in connection with enforcement of the Revised Indemnification Agreement or with the investigation, settlement or appeal of any action or proceeding against him or her as to which he or she could be indemnified.

On July 3, 2010, pursuant to a corporate reorganization, the common shareholders of Seagate-Cayman became ordinary shareholders of the Company and Seagate-Cayman became a wholly owned subsidiary of the Company, as described more fully in the Current Report on Form 8-K filed by the Company on July 6, 2010 (the “Redomestication”). On July 27, 2010, in connection with the Redomestication, the Company, as sole shareholder of Seagate-Cayman, approved a form of deed of indemnity (the “Deed of Indemnity”), which provides for the indemnification by Seagate-Cayman of any director, officer, employee or agent of the Company, Seagate-Cayman or any subsidiary of the Company (each, a “Deed Indemnitee”), in addition to any indemnification rights of a Deed Indemnitee under the Company’s Articles of Association, applicable law or otherwise, with a similar scope to the Revised Indemnification Agreement. Seagate-Cayman entered into Deeds of Indemnity with certain Deed Indemnitees effective as of July 3, 2010 and continues to enter into Deeds of Indemnity with additional Deed Indemnitees from time to time.

The nature of these indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay on behalf of its officers and directors. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the Company’s consolidated financial statements with respect to these indemnification obligations.

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Intellectual Property Indemnification Obligations

The Company has entered into agreements with customers and suppliers that include limited intellectual property indemnification obligations that are customary in the industry. These guarantees generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party intellectual property claims arising from these transactions. The nature of the intellectual property indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to its customers and suppliers. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the Company’s condensed consolidated financial statements with respect to these indemnification obligations.

Product Warranty

The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally warrants its products for a period of 1 to 5 years. The Company uses estimated repair or replacement costs and uses statistical modeling to estimate product return rates in order to determine its warranty obligation. Changes in the Company’s product warranty liability during the three and six months ended December 28, 2018 and December 29, 2017 were as follows:

	For the Three Months Ended						For the Six Months Ended
(Dollars in millions)	December 28, 2018			December 29, 2017			December 28, 2018			December 29, 2017
Balance, beginning of period	$	232		$	230		$	237		$	233
Warranties issued		31			40			65			75
Repairs and replacements		(27	)		(27	)		(52	)		(54	)
Changes in liability for pre-existing warranties, including expirations		(14	)		(7	)		(28	)		(18	)
Balance, end of period	$	222		$	236		$	222		$	236

13. Earnings Per Share

Basic earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period and the number of additional shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options, unvested restricted stock units and performance-based share units and shares to be purchased under the Company’s Employee Stock Purchase Plan (“ESPP”). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in fair market value of the Company’s share price can result in a greater dilutive effect from potentially dilutive securities. The following table sets forth the computation of basic and diluted net income per share attributable to the shareholders of the Company:

	For the Three Months Ended				For the Six Months Ended
(In millions, except per share data)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Numerator:
Net income	$	384	$	159	$	834	$	340
Number of shares used in per share calculations:
Total shares for purposes of calculating basic net income per share		285		288		286		289
Weighted-average effect of dilutive securities:
Employee equity award plans		2		3		4		2
Total shares for purpose of calculating diluted net income per share		287		291		290		291
Net income per share:
Basic	$	1.35	$	0.55	$	2.92	$	1.18
Diluted	$	1.34	$	0.55	$	2.88	$	1.17

The anti-dilutive shares related to employee equity award plans that were excluded from the computation of diluted net income per share were approximately 1 million for the three and six months ended December 28, 2018, and approximately 1 million and 2 million for the three and six months ended December 29, 2017, respectively.

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14. Legal, Environmental and Other Contingencies

The Company assesses the probability of an unfavorable outcome of all its material litigation, claims, or assessments to determine whether a liability had been incurred and whether it is probable that one or more future events will occur confirming the fact of the loss. In the event that an unfavorable outcome is determined to be probable and the amount of the loss can be reasonably estimated, the Company establishes an accrual for the litigation, claim or assessment. In addition, in the event an unfavorable outcome is determined to be less than probable, but reasonably possible, the Company will disclose an estimate of the possible loss or range of such loss; however, when a reasonable estimate cannot be made, the Company will provide disclosure to that effect. Litigation is inherently uncertain and may result in adverse rulings or decisions. Additionally, the Company may enter into settlements or be subject to judgments that may, individually or in the aggregate, have a material adverse effect on its results of operations. Accordingly, actual results could differ materially.

Intellectual Property Litigation

Convolve, Inc. (“Convolve”) and Massachusetts Institute of Technology (“MIT”) v. Seagate Technology LLC, et al. On July 13, 2000, Convolve and MIT filed suit against Compaq Computer Corporation and Seagate Technology LLC in the U.S. District Court for the Southern District of New York, alleging infringement of U.S. Patent No. 4,916,635 (the “‘635 patent”) and U.S. Patent No. 5,638,267 (the “‘267 patent”), misappropriation of trade secrets, breach of contract, and other claims. On January 16, 2002, Convolve filed an amended complaint, alleging defendants were infringing U.S. Patent No. 6,314,473 (the “‘473 patent”). The district court ruled in 2010 that the ‘267 patent was out of the case.

On August 16, 2011, the district court granted in part and denied in part the Company’s motion for summary judgment. On July 1, 2013, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court’s summary judgment rulings that Seagate did not misappropriate any of the alleged trade secrets and that the asserted claims of the ‘635 patent are invalid; 2) reversed and vacated the district court’s summary judgment of non-infringement with respect to the ‘473 patent; and 3) remanded the case for further proceedings on the ‘473 patent. On July 11, 2014, the district court granted the Company’s further summary judgment motion regarding the ‘473 patent. On February 10, 2016, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court’s summary judgment of no direct infringement by Seagate because Seagate’s ATA/SCSI disk drives do not meet the “user interface” limitation of the asserted claims of the ‘473 patent; 2) affirmed the district court’s summary judgment of non-infringement by Compaq’s products as to claims 1, 3, and 5 of the ‘473 patent because Compaq’s F10 BIOS interface does not meet the “commands” limitation of those claims; 3) vacated the district court’s summary judgment of non-infringement by Compaq’s accused products as to claims 7-15 of the ‘473 patent; 4) reversed the district court’s summary judgment of non-infringement based on intervening rights; and 5) remanded the case to the district court for further proceedings on the ‘473 patent. In view of the rulings made by the district court and the Court of Appeals and the uncertainty regarding the amount of damages, if any, that could be awarded Convolve in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter.

Lambeth Magnetic Structures LLC v. Seagate Technology (US) Holdings, Inc., et al. On April 29, 2016, Lambeth Magnetic Structures LLC filed a complaint against Seagate Technology (US) Holdings, Inc. and Seagate Technology LLC in the U.S. District Court for the Western District of Pennsylvania, alleging infringement of U.S. Patent No. 7,128,988, “Magnetic Material Structures, Devices and Methods.” The Company believes the claims asserted in the complaint are without merit and intends to vigorously defend this case. The court issued its claim construction ruling on October 18, 2017. No trial date has been set. While the possible range of loss for this matter remains uncertain, the Company estimates the amount of loss to be immaterial to the financial statements.

Environmental Matters

The Company’s operations are subject to U.S. and foreign laws and regulations relating to the protection of the environment, including those governing discharges of pollutants into the air and water, the management and disposal of hazardous substances and wastes and the cleanup of contaminated sites. Some of the Company’s operations require environmental permits and controls to prevent and reduce air and water pollution, and these permits are subject to modification, renewal and revocation by issuing authorities.

The Company has established environmental management systems and continually updates its environmental policies and standard operating procedures for its operations worldwide. The Company believes that its operations are in material compliance with applicable environmental laws, regulations and permits. The Company budgets for operating and capital costs on an ongoing basis to comply with environmental laws. If additional or more stringent requirements are imposed on the Company in the future, it could incur additional operating costs and capital expenditures.

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Some environmental laws, such as the Comprehensive Environmental Response Compensation and Liability Act of 1980 (as amended, the “Superfund” law) and its state equivalents, can impose liability for the cost of cleanup of contaminated sites upon any of the current or former site owners or operators or upon parties who sent waste to these sites, regardless of whether the owner or operator owned the site at the time of the release of hazardous substances or the lawfulness of the original disposal activity. The Company has been identified as a responsible or potentially responsible party at several sites. At each of these sites, the Company has an assigned portion of the financial liability based on the type and amount of hazardous substances disposed of by each party at the site and the number of financially viable parties. The Company has fulfilled its responsibilities at some of these sites and remains involved in only a few at this time.

While the Company’s ultimate costs in connection with these sites is difficult to predict with complete accuracy, based on its current estimates of cleanup costs and its expected allocation of these costs, the Company does not expect costs in connection with these sites to be material.

The Company may be subject to various state, federal and international laws and regulations governing the environment, including those restricting the presence of certain substances in electronic products. For example, the European Union (“EU”) enacted the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment, which prohibits the use of certain substances, including lead, in certain products, including disk drives and server storage products, put on the market after July 1, 2006. Similar legislation has been or may be enacted in other jurisdictions, including in the United States, Canada, Mexico, Taiwan, China, Japan and others. The European Union REACH Directive (Registration, Evaluation, Authorization, and Restriction of Chemicals, EC 1907/2006) also restricts substances of very high concern (“SVHCs”) in products. If the Company or its suppliers fails to comply with the substance restrictions, recycle requirements or other environmental requirements as they are enacted worldwide, it could have a materially adverse effect on the Company’s business.

Other Matters

The Company is involved in a number of other judicial, regulatory or administrative proceedings and investigations incidental to its business, and the Company may be involved in such proceedings and investigations arising in the normal course of its business in the future. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on its financial position or results of operations.

15. Commitments

Unconditional Long-term Purchase Obligations

As of December 28, 2018, the Company had unconditional long-term purchase obligations of approximately $177 million, primarily related to purchase minimum quarterly amounts of inventory components at fixed contractual prices. The Company expects the commitment to total $4 million, $50 million, $48 million, $47 million and $28 million for fiscal years 2021, 2024, 2025, 2026 and 2027, respectively with no remaining commitment thereafter.

Unconditional Long-term Capital Expenditures

As of December 28, 2018, the Company had $23 million of unconditional long-term commitment primarily related to purchases of equipment.

16. Subsequent Events

Dividend Declared

On February 4, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.63 per share, which will be payable on April 3, 2019 to shareholders of record as of the close of business on March 20, 2019.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is a discussion of the financial condition, changes in financial condition, and results of operations for our fiscal quarters ended December 28, 2018, September 28, 2018 and December 29, 2017, referred to herein as the “December 2018 quarter,” the “September 2018 quarter,” and the “December 2017 quarter,” respectively. We operate and report financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. The December 2018, September 2018 and December 2017 quarters were all 13 weeks.

You should read this discussion in conjunction with financial information and related notes included elsewhere in this report. Unless the context indicates otherwise, as used herein, the terms “we,” “us,” “Seagate,” the “Company” and “our” refer to Seagate Technology plc, an Irish public limited company, and its subsidiaries. References to “$” are to United States dollars.

Some of the statements and assumptions included in this Quarterly Report on Form 10-Q are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended, including, in particular, statements about our plans, strategies and prospects, demand for our products, shifts in technology, estimates of industry growth, our ability to effectively manage our debt obligations and our cash liquidity position, our restructuring efforts, the sufficiency of our sources of cash to meet our cash needs for the next 12 months, our expectations regarding capital expenditures, and the impact of the 2017 U.S. Tax Cuts and Jobs Act (the “Tax Act”) on our financial statements and the projected costs savings for the fiscal year ending June 28, 2019. These statements identify prospective information and may include words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “may,” “will,” or negative of these words, variations of these words and comparable terminology. These forward-looking statements are based on information available to the Company as of the date of this Quarterly Report on Form 10-Q and are based on management’s current views and assumptions. These forward-looking statements are conditioned upon and also involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, performance or events to differ materially from those anticipated by these forward-looking statements. Such risks, uncertainties and other factors may be beyond our control and may pose a risk to our operating and financial condition. Such risks and uncertainties include, but are not limited to:

• the uncertainty in global economic and political conditions;

• the development and introduction of products based on new technologies and expansion into new data storage markets;

• the impact of competitive product announcements and unexpected advances in competing technologies or changes in market trends;

• the impact of variable demand and an adverse pricing environment for storage products;

• the Company’s ability to achieve projected cost savings in connection with its restructuring plans and consolidation of its manufacturing activities;

• the Company’s ability to effectively manage its debt obligations and comply with certain covenants in its credit facilities with respect to financial ratios and financial condition tests and maintain a favorable cash liquidity position;

• the Company’s ability to successfully qualify, manufacture and sell its storage products, particularly the new disk drive products with lower cost structures, in increasing volumes on a cost-effective basis and with acceptable quality;

• possible excess industry supply both with respect to particular disk drive products and competing alternative storage technology solutions;

• disruptions to the Company’s supply chain or production capabilities;

• consolidation trends in the data storage industry;

• fluctuations in interest rates;

• currency fluctuations that may impact the Company’s margins, international sales and results of operations;

• fluctuations in the value of the Company’s investments and the associated investment income;

• the impact of trade barriers, such as import/export duties and restrictions, tariffs and quotas, imposed by the U.S. or other countries in which the Company conducts business;

• the evolving legal, regulatory and administrative climate in the international markets where the Company operates including changes in regulations relating to privacy and protection of data and environmental matters; and

• cyber-attacks or other data breaches that disrupt the Company’s operations or result in the dissemination of proprietary or confidential information and cause reputational harm, and the cybersecurity threats and vulnerabilities associated with the Company’s infrastructure updates to its information technology systems.

Information concerning risks, uncertainties and other factors that could cause results to differ materially from those projected in such forward-looking statements is also set forth in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended June 29, 2018, which we encourage you to carefully read. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date on which they were made and we undertake no obligation to update forward-looking statement s to reflect new information or future events or circumstances after the date they were made.

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Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is provided in addition to the accompanying condensed consolidated financial statements and notes to assist readers in understanding our results of operations, financial condition, and cash flows. MD&A is organized as follows:

• Our Company. Overview of our business.

• Overview of the December 2018 quarter. Highlights of events in the December 2018 quarter that impacted our financial position.

• Results of Operations. An analysis of our financial results comparing the December 2018 quarter to the September 2018 quarter and the December 2017 quarter.

• Liquidity and Capital Resources. An analysis of changes in our balance sheet and cash flows, and discussion of our financial condition including the credit quality of our investment portfolio and potential sources of liquidity.

• Contractual Obligations and Commitments. Overview of contractual obligations and contingent liabilities and commitments outstanding as of December 28, 2018.

• Critical Accounting Policies. Accounting policies and estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results.

Our Company

We are a leading provider of data storage technology and solutions. Our principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, we produce a broad range of data storage products including solid state drives (“SSD”) and storage subsystems.

Hard disk drives are devices that store digitally encoded data on rapidly rotating disks with magnetic surfaces. Disk drives continue to be the primary medium of mass data storage due to their performance attributes, high quality and cost effectiveness. Complementing existing data center storage architecture, solid-state storage devices use integrated circuit assemblies as memory to store data, and most SSDs use NAND flash memory.

Our HDD products are designed for mission critical and nearline applications in enterprise servers and storage systems; edge compute applications, where our products are designed primarily for desktop and mobile computing; and edge non-compute applications, where our products are designed for a wide variety of end user devices such as portable external storage systems, surveillance systems, digital video recorders (“DVRs”), network-attached storage (“NAS”) and gaming consoles. Our SSD products mainly include serial attached SCSI (“SAS”) and Non-Volatile Memory Express (“NVMe”) SSDs.

Our enterprise data solutions (formerly referred to as the “cloud systems and solutions”) portfolio includes modular original equipment manufacturer (“OEM”) storage systems and scale-out storage servers.

Overview of the December 2018 quarter

During the December 2018 quarter, we shipped 87 exabytes of HDD storage capacity. We generated revenue of approximately $2.7 billion, gross margin of 29% and our operating cash flow was $288 million. We paid $499 million towards the maturity of our 2018 Senior Notes, $180 million in dividends and repurchased approximately 3 million of our ordinary shares for $136 million.

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Results of Operations

We list in the tables below summarized information from our Condensed Consolidated Statements of Operations by dollars and as a percentage of revenue:

	For the Three Months Ended									For the Six Months Ended
(Dollars in millions)	December 28, 2018			September 28, 2018			December 29, 2017			December 28, 2018			December 29, 2017
Revenue	$	2,715		$	2,991		$	2,914		$	5,706		$	5,546
Cost of revenue		1,921			2,078			2,037			3,999			3,933
Gross margin		794			913			877			1,707			1,613
Product development		246			266			250			512			513
Marketing and administrative		120			115			142			235			287
Amortization of intangibles		5			6			19			11			41
Restructuring and other, net		7			23			33			30			84
Income from operations		416			503			433			919			688
Other expense, net		(18	)		(35	)		(62	)		(53	)		(129	)
Income before income taxes		398			468			371			866			559
Provision for income taxes		14			18			212			32			219
Net income	$	384		$	450		$	159		$	834		$	340
	For the Three Months Ended									For the Six Months Ended
	December 28, 2018			September 28, 2018			December 29, 2017			December 28, 2018			December 29, 2017
Revenue		100%			100%			100%			100%			100%
Cost of revenue		71			69			70			70			71
Gross margin		29			31			30			30			29
Product development		9			9			9			9			9
Marketing and administrative		5			4			5			4			5
Amortization of intangibles		—			—			—			—			1
Restructuring and other, net		—			1			1			1			2
Income from operations		15			17			15			16			12
Other expense, net		(1)			(1)			(3)			(1)			(2)
Income before income taxes		14			16			12			15			10
Provision for income taxes		—			1			7			—			4
Net income		14%			15%			5%			15%			6%

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Revenue

The following table summarizes information regarding consolidated revenues by channel and geography, HDD average drive selling prices (“ASPs”) and HDD exabytes shipped:

	For the Three Months Ended						For the Six Months Ended
	December 28, 2018		September 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Revenues by Channel (%)
OEMs		69%		71%		68%		70%		69%
Distributors		16%		18%		17%		17%		17%
Retailers		15%		11%		15%		13%		14%
Revenues by Geography (%)
Americas		27%		34%		31%		30%		32%
EMEA		22%		17%		20%		20%		19%
Asia Pacific		51%		49%		49%		50%		49%
HDD ASPs (per unit)	$	68	$	70	$	68	$	69	$	66
HDD Exabytes Shipped		87		99		88		186		158

Revenue in the December 2018 quarter decreased by $276 million from the September 2018 quarter primarily due to the decrease in exabytes shipped as a result of less favorable market conditions, and price erosion, partially offset by higher seasonal demand in the consumer market.

Revenue in the December 2018 quarter decreased by $199 million from the December 2017 quarter primarily due to price erosion.

Revenue for the six months ended December 28, 2018 increased by $160 million from the six months ended December 29, 2017 as a result of an increase in exabytes shipped due to higher demand for our high capacity HDD product portfolio, partially offset by price erosion.

We maintain various sales programs such as channel rebates and price masking. Sales programs were approximately 13%, 11% and 12% of gross drive revenue for the December 2018 quarter, September 2018 quarter and December 2017 quarter, respectively. Adjustments to revenues due to under or over accruals for sales programs related to revenues reported in prior quarterly periods were less than 1% of quarterly gross revenue in all periods presented.

Cost of Revenue and Gross Margin

	For the Three Months Ended									For the Six Months Ended
(Dollars in millions)	December 28, 2018			September 28, 2018			December 29, 2017			December 28, 2018			December 29, 2017
Cost of revenue	$	1,921		$	2,078		$	2,037		$	3,999		$	3,933
Gross margin		794			913			877			1,707			1,613
Gross margin percentage		29	%		31	%		30	%		30	%		29	%

Gross margin as a percentage of revenue for the December 2018 quarter decreased from the September 2018 quarter primarily driven by price erosion and unfavorable product mix.

Compared to the December 2017 quarter, gross margin as a percentage of revenue for the December 2018 quarter decreased primarily driven by price erosion, partially offset by favorable product mix.

Compared to the six months ended December 29, 2017, gross margin as a percentage of revenue for the six months ended December 28, 2018 increased primarily driven by favorable product mix and improved factory utilization as a result of increased revenue from our high capacity HDD product portfolio, partially offset by a decline in prices for NAND flash memory and general price erosion.

In the December 2018 quarter, total warranty cost was 0.6% of revenue and included a favorable change in estimates of prior warranty accruals of 0.5% of revenue due to improvements in return rates on newer generation products. Warranty cost related to new shipments was 1.1%, 1.2% and 1.4% of revenue for the December 2018, September 2018 and December 2017 quarters, respectively.

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Operating Expenses

	For the Three Months Ended						For the Six Months Ended
(Dollars in millions)	December 28, 2018		September 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Product development	$	246	$	266	$	250	$	512	$	513
Marketing and administrative		120		115		142		235		287
Amortization of intangibles		5		6		19		11		41
Restructuring and other, net		7		23		33		30		84
Operating expenses	$	378	$	410	$	444	$	788	$	925

Product development expense. Product development expense for the December 2018 quarter decreased by $20 million compared to the September 2018 quarter primarily due to a $4 million decrease in variable compensation expense and an $11 million charge related to the voluntary early exit program in the prior period.

Compared to the December 2017 quarter, Product development expense for the December 2018 quarter remained flat.

Compared to the corresponding six months ended December 29, 2017, Product development expense for the six months ended December 28, 2018 remained flat including an $11 million charge related to the voluntary early exit program, which was offset by an $11 million decrease in variable compensation and share-based compensation expenses.

Marketing and administrative expense. Marketing and administrative expense for the December 2018 quarter increased by $5 million from the September 2018 quarter, primarily due to a $7 million increase in share-based compensation expense, partially offset by a $3 million decrease in variable compensation expense.

Compared to the December 2017 quarter, Marketing and administrative expense for the December 2018 quarter decreased by $22 million, primarily due to a $6 million decrease in salaries and employee benefits as a result of the restructuring of our workforce in prior periods, an $8 million decrease in other general expenses due to related operational efficiencies and an $8 million decrease in variable compensation expense.

Compared to the corresponding six months ended December 29, 2017, Marketing and administrative expense for the six months ended December 28, 2018 decreased by $52 million, primarily due to a $19 million decrease in salaries and employee benefits as a result of the restructuring of our workforce in prior periods, a $16 million decrease in other general expenses due to related operational efficiencies and a $17 million decrease in variable compensation and share-based compensation expenses.

Amortization of intangibles. Amortization of intangibles for the December 2018 quarter remained flat compared to the September 2018 quarter. Amortization of intangibles for the three and six months ended December 28, 2018 decreased by $14 million and $30 million, respectively, from the three and six months ended December 29, 2017 due to certain intangible assets reaching the end of their useful life.

Restructuring and other, net. Restructuring and other, net for the six months ended December 28, 2018 was comprised of charges primarily related to a voluntary early exit program. There was no new restructuring plan in the December 2018 quarter.

Restructuring and other, net for the three and six months ended December 29, 2017 was comprised of restructuring charges to reduce our global workforce by 500 and 1,100 employees, respectively.

Other Expense, Net

	For the Three Months Ended									For the Six Months Ended
(Dollars in millions)	December 28, 2018			September 28, 2018			December 29, 2017			December 28, 2018			December 29, 2017
Other expense, net	$	(18	)	$	(35	)	$	(62	)	$	(53	)	$	(129	)

Other expense, net. Other expense, net for the December 2018 quarter decreased by $17 million from the September 2018 quarter primarily due to a $12 million net increase in gains due to favorable changes in foreign currency exchange rates and a $6 million net increase in gains related to strategic investments.

Compared to the December 2017 quarter, Other expense, net for the December 2018 quarter decreased by $44 million primarily due to a $19 million net increase in gains due to favorable changes in foreign currency exchange rates, a $16 million increase in interest income on our investment in a debt security and a $4 million decrease in interest expense due to the repayment of certain senior notes.

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Other expenses, net for the six months ended December 28, 2018 decreased by $76 million from the corresponding period in the prior year, primarily due to a $34 million net increase in gains due to favorable changes in foreign currency exchange rates, a $31 million increase in interest income on our investment in a debt security and a $7 million decrease in interest expense due to the repayment of certain senior notes.

Income Taxes

	For the Three Months Ended						For the Six Months Ended
(Dollars in millions)	December 28, 2018		September 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Provision for income taxes	$	14	$	18	$	212	$	32	$	219

We recorded income tax provisions of $14 million and $32 million in the three and six months ended December 28, 2018, respectively. The income tax provision for the three and six months ended December 28, 2018 included approximately $5 million and $4 million of net discrete tax benefits, respectively, primarily associated with the recognition of previously unrecognized tax benefits related to the expiration of certain statutes of limitation.

Our income tax provision recorded for the three and six months ended December 28, 2018 differed from the provision for income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain deferred tax assets.

During the six months ended December 28, 2018, our unrecognized tax benefits excluding interest and penalties decreased by approximately $20 million to $40 million. The unrecognized tax benefits that, if recognized, would impact the effective tax rate were $40 million at December 28, 2018, subject to certain future valuation allowance reversals. During the 12 months beginning December 29, 2018, we expect that our unrecognized tax benefits could be reduced by approximately $7 million, primarily as a result of the expiration of certain statutes of limitation.

Our income tax provision was $212 million and $219 million in the three and six months ended December 29, 2017, respectively. The income tax provision for the three and six months ended December 29, 2017 included approximately $197 million of net discrete tax expense, primarily associated with the revaluation of U.S. deferred tax assets as a result of the enactment of the Tax Act on December 22, 2017, partially offset by the recognition of previously unrecognized tax benefits associated with the expiration of certain statutes of limitation.

Our income tax provision recorded for the six months ended December 29, 2017 differed from the provision for income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax holidays or tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain deferred tax assets.

On December 22, 2017, the Tax Act was enacted into law in the United States. The Tax Act significantly revises U.S. corporate income tax law by, among other things, lowering U.S. corporate income tax rates from 35% to 21%, implementing a territorial tax system, and imposing a one-time transition tax on deemed repatriated earnings of non-U.S. subsidiaries.

The U.S. tax law changes, including limitations on various business deductions such as executive compensation under Internal Revenue Code §162(m), will not impact our tax expense in the short-term due to our large net operating loss and tax credit carryovers and associated valuation allowance. The Tax Act’s new international rules, including Global Intangible Low-Taxed Income (“GILTI”), Foreign Derived Intangible Income (“FDII”), and Base Erosion Anti-Avoidance Tax (“BEAT”) are effective beginning in fiscal year 2019. For fiscal year 2019, we have included these effects of the Tax Act in our financial statements and concluded the impact will not be material.

As of September 2018 quarter, pursuant to SEC Staff Accounting Bulletin (“SAB”) 118 (regarding the application of ASC 740 associated with the enactment of the Tax Act), we had considered SAB 118 and believed our accounting under ASC 740 for the provisions of the Tax Act was complete.

Liquidity and Capital Resources

The following sections discuss our principal liquidity requirements, as well as our sources and uses of cash and our liquidity and capital resources. Our cash and cash equivalents are maintained in investments with remaining maturities of 90 days or less at the time of purchase. Our short-term investments consist primarily of money market funds, time deposits and certificates of deposit. The principal objectives of our investment policy are the preservation of principal and maintenance of liquidity. We believe our cash equivalents and short-term investments are liquid and accessible. We operate in some countries that have restrictive regulations over the movement of cash and/or foreign exchange across their borders. However, we believe our sources of cash have been and will continue to be sufficient to meet our cash needs for the next 12 months. We are not aware of any downgrades, losses or other significant deterioration in the fair value of our cash equivalents or short-term investments and we do not believe the fair value of our short-term investments has significantly changed from the values reported as of December 28, 2018.

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Cash and Cash Equivalents

(Dollars in millions)	December 28, 2018		June 29,          2018		Change
Cash and cash equivalents	$	1,357	$	1,853	$	(496)

Our cash and cash equivalents as of December 28, 2018 decreased by $496 million from June 29, 2018 primarily as a result of repayment of our 2018 Senior Notes of $499 million, repurchases of our ordinary shares of $286 million, dividends to our shareholders of $361 million and payments for capital expenditures of $304 million, partially offset by net cash provided by operating activities.

Cash Provided by Operating Activities

Cash provided by operating activities for the six months ended December 28, 2018 was $875 million and includes the effects of net income adjusted for non-cash items including depreciation, amortization, share-based compensation and:

• a decrease of $240 million in accounts payable, primarily due to lower material purchases and timing of payments; and

• a decrease of $89 million in accrued employee compensation primarily due to cash paid to our employees as part of our variable compensation plans.

Cash Used in Investing Activities

Cash used in investing activities for the six months ended December 28, 2018 was $230 million, primarily attributable to the payments for the purchase of property, equipment and leasehold improvements of $304 million, offset by the proceeds from the settlement of foreign currency forward exchange contracts of $66 million.

Cash Used in Financing Activities

Cash used in financing activities of $1,141 million for the six months ended December 28, 2018 was primarily attributable to the following activities:

• $499 million in repayment of our 2018 Senior Notes;

• $361 million in dividend payments;

• $286 million in payments for repurchase of our ordinary shares; and

• $30 million in payments for taxes related to net share settlement of equity awards;

• partially offset by $35 million in proceeds from the issuance of ordinary shares under employee stock plans.

Liquidity Sources, Cash Requirements and Commitments

Our primary sources of liquidity as of December 28, 2018 consisted of: (1) approximately $1.4 billion in cash and cash equivalents, (2) cash we expect to generate from operations and (3) a $700 million senior revolving credit facility.

As of December 28, 2018, no borrowings had been drawn under the revolving credit facility or had been utilized for letters of credit issued under this credit facility. The line of credit is available for borrowings, subject to compliance with financial covenants and other customary conditions to borrowing.

The credit agreement that governs our revolving credit facility, as amended, includes three financial covenants: (1) minimum cash, cash equivalents and marketable securities; (2) a fixed charge coverage ratio; and (3) a net leverage ratio. The term of the revolving credit facility is through January 15, 2020. We were in compliance with the modified covenants as of December 28, 2018 and expect to be in compliance for the next 12 months.

Our liquidity requirements are primarily to meet our working capital, product development and capital expenditure needs, to fund scheduled payments of principal and interest on our indebtedness, and to fund our quarterly dividend and any future strategic investments. Our ability to fund these requirements will depend on our future cash flows, which are determined by future operating performance, and therefore, subject to prevailing global macroeconomic conditions and financial, business and other factors, some of which are beyond our control.

For fiscal year 2019, we expect capital expenditures to remain within our long-term targeted range of 6% to 8% of revenue.

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From time to time we may repurchase any of our outstanding notes in open market or privately negotiated purchases or otherwise, or we may repurchase outstanding notes pursuant to the terms of the applicable indenture.

Dividends declared in the December 2018 quarter of $178 million were subsequently paid on January 2, 2019. Our Board of Directors declared a quarterly cash dividend of $0.63 per share on February 4, 2019, which is payable on April 3, 2019 to shareholders of record at the close of business on March 20, 2019.

From time to time we may repurchase any of our outstanding ordinary shares through private, open market, tender offers broker-assisted purchases or other means. On October 29, 2018, our Board of Directors authorized the repurchase of an additional $2.3 billion of its outstanding ordinary shares. As of December 28, 2018, $2.9 billion remained available for repurchase under our existing repurchase authorization limit. All repurchases are effected as redemptions in accordance with our Articles of Association.

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Contractual Obligations and Commitments

Our contractual cash obligations and commitments as of December 28, 2018, have been summarized in the table below:

			Fiscal Year(s)
(Dollars in millions)	Total		Remainder of 2019		2020-2021		2022-2023		Thereafter
Contractual Cash Obligations:
Long-term debt, including current portion	$	4,363	$	—	$	—	$	1,701	$	2,662
Interest payments on debt		1,489		104		420		388		577
Purchase obligations (1)		882		701		8		—		173
Operating leases (2)		113		6		20		16		71
Capital expenditures		298		150		147		1		—
Other funding requirements (3)		6		2		4		—		—
Subtotal		7,151		963		599		2,106		3,483
Commitments:
Letters of credit or bank guarantees		102		15		87		—		—
Total	$	7,253	$	978	$	686	$	2,106	$	3,483

(1) Purchase obligations are defined as contractual obligations for the purchase of goods or services, which are enforceable and legally binding on us, and that specify all significant terms.

(2) Includes total future minimum rent expense under non-cancelable leases for both occupied and vacated facilities (rent expense is shown net of sublease income).

(3) Consists of funding requirements related to strategic commitments.

As of December 28, 2018, we had a liability of $40 million for unrecognized tax benefits excluding interest and penalties, of which $4 million and an additional $1 million of interest and penalties could result in potential cash payments, none of which is expected to be settled within one year. Outside of one year, we are unable to make a reasonably reliable estimate of when cash settlement with a taxing authority will occur.

Critical Accounting Policies

Our discussion and analysis of financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of such statements requires us to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period and the reported amounts of assets and liabilities as of the date of the financial statements. Our estimates are based on historical experience and other assumptions that we consider to be appropriate in the circumstances. However, actual future results may vary from our estimates.

Other than as described in “Part I, Item 1. Financial Statements - Note 1. Basis of Presentation and Summary of Significant Accounting Policies”, there have been no other material changes in our critical accounting policies and estimates. Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in Part II, Item 7 of our Annual Report on Form 10-K for the fiscal year ended June 29, 2018, as filed with the SEC on August 3, 2018, for a discussion of our critical accounting policies and estimates.

Recent Accounting Pronouncements

See “Part I, Item 1. Financial Statements - Note 1. Basis of Presentation and Summary of Significant Accounting Policies” for information regarding the effect of new accounting pronouncements on our financial statements.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have exposure to market risks due to the volatility of interest rates, foreign currency exchange rates, credit rating changes, equity and bond markets. A portion of these risks may be hedged, but fluctuations could impact our results of operations, financial position and cash flows.

Interest Rate Risk. Our exposure to market risk for changes in interest rates relates primarily to our cash investment portfolio including investment in debt security in Toshiba Memory Corporation (“TMC”, formerly known as “K.K. Pangea”). As of December 28, 2018, we had no other-than-temporary impairment for our investment in debt security and we had no available-for-sale debt securities that had been in a continuous unrealized loss position for a period greater than 12 months. We determined no available-for-sale debt securities were other-than-temporarily impaired as of December 28, 2018.

We have fixed rate debt obligations. We enter into debt obligations for general corporate purposes including capital expenditures and working capital needs.

The table below presents principal amounts and related weighted-average interest rates by year of maturity for our investment portfolio and debt obligations as of December 28, 2018.

	Fiscal Years Ended
(Dollars in millions, except percentages)	2019			2020		2021		2022			2023			Thereafter			Total			Fair Value at December 28, 2018
Assets
Cash equivalents:
Floating rate	$	880		$	—	$	—	$	—		$	—		$	—		$	880		$	880
Average interest rate		2.84	%															2.84	%
Investment in debt security including accrued PIK income:
Fixed rate	$	—		$	—	$	—	$	—		$	—		$	1,300		$	1,300		$	1,272
Fixed interest rate															5.00	%		5.00	%
Debt
Fixed rate	$	—		$	—	$	—	$	750		$	951		$	2,662		$	4,363		$	3,933
Average interest rate									4.25	%		4.75	%		4.99	%		4.70	%

Foreign Currency Exchange Risk. From time to time, we may enter into foreign currency forward exchange contracts to manage exposure related to certain foreign currency commitments and anticipated foreign currency denominated expenditures. Our policy prohibits us from entering into derivative financial instruments for speculative or trading purposes. At this time, we have not identified any material exposure associated with the potential changes related to the British vote to exit the European Union.

We hedge portions of our foreign currency denominated balance sheet positions with foreign currency forward exchange contracts to reduce the risk that our earnings will be adversely affected by changes in currency exchange rates. Our foreign currency forward exchange contracts include an aggregate notional amount of 139.5 billion Japanese Yen ($1.3 billion at December 28, 2018 and June 29, 2018), to hedge foreign exchange fluctuations of our investment principal in non-convertible preferred stock debt security of TMC. We did not designate these contracts as hedges under ASC 815, Derivatives and Hedging and, therefore, the change in fair value of these contracts is recognized in earnings in the same period as the gains and losses from the remeasurement of the assets and liabilities. All foreign currency forward exchange contracts discussed above mature within 12 months.

We evaluate hedging effectiveness prospectively and retrospectively. As of December 28, 2018, our foreign currency forward exchange contracts include a notional amount of approximately 10.1 billion Japanese Yen ($91 million), to hedge the PIK income related to our TMC investment, out of which $55 million is designated as a cash flow hedge and the remainder of $36 million was de-designated and included in contracts not designated as hedges.

We did not have any material net gains or losses recognized in Other expense, net for cash flow hedges due to hedge ineffectiveness or discontinued cash flow hedges during the three and six months ended December 28, 2018.

The table below provides information as of December 28, 2018 about our foreign currency forward exchange contracts. The table is provided in U.S. dollar equivalent amounts and presents the notional amounts (at the contract exchange rates) and the weighted-average contractual foreign currency exchange rates.

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(Dollars in millions, except weighted-average contract rate)	Notional Amount		Weighted- Average Contract Rate		Estimated Fair Value(1)
Foreign currency forward exchange contracts:
Thai Baht	$	38	$	33.11	$	—
Singapore Dollars		50		1.36		—
Chinese Renminbi		20		6.78		—
British Pound Sterling		56		0.77		(1	)
Japanese Yen		1,354		110.51		(30	)
Total	$	1,518			$	(31	)

(1) Equivalent to the unrealized net gain (loss) on existing contracts.

Other Market Risks. We have exposure to counterparty credit downgrades in the form of credit risk related to our foreign currency forward exchange contracts and our fixed income portfolio. We monitor and limit our credit exposure for our foreign currency forward exchange contracts by performing ongoing credit evaluations. We also manage the notional amount of contracts entered into with any one counterparty, and we maintain limits on maximum tenor of contracts based on the credit rating of the financial institution. Additionally, the investment portfolio is diversified and structured to minimize credit risk.

Changes in our corporate issuer credit ratings have minimal impact on our near term financial results, but downgrades may negatively impact our future ability to raise capital, increase the cost of such capital and our ability to execute transactions with various counterparties.

We have an investment in debt security of $1.3 billion carried at amortized cost. We review our debt security for impairment when events and circumstances indicate a decline in fair value of such asset below carrying value is other-than-temporary.

We are subject to equity market risks due to changes in the fair value of the notional investments selected by our employees as part of our Seagate Deferred Compensation Plan (the “SDCP”). In fiscal year 2014, we entered into a Total Return Swap (“TRS”) in order to manage the equity market risks associated with the SDCP liabilities. We pay a floating rate, based on LIBOR plus an interest rate spread, on the notional amount of the TRS. The TRS is designed to substantially offset changes in the SDCP liability due to changes in the value of the investment options made by employees. See “Part I, Item 1. Financial Statements - Note 7. Derivative Financial Instruments” of this Quarterly Report on Form 10-Q.

ITEM 4. CONTROLS AND PROCEDURES

As required by the Exchange Act Rule 13a-15, as of December 28, 2018 we carried out an evaluation under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report. Based on the evaluation, our management, including our chief executive officer and chief financial officer, concluded that our disclosure controls and procedures are effective as of December 28, 2018. During the quarter ended December 28, 2018, there were no changes in our internal control over financial reporting that materially affected, or were reasonably likely to materially affect, our internal control over financial reporting.

PART II

OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

For a discussion of legal proceedings, see “Part I, Item 1. Financial Statements - Note 14. Legal, Environmental and Other Contingencies” of this Quarterly Report on Form 10-Q.

ITEM 1A. RISK FACTORS

There have been no material changes to the description of the risk factors associated with our business previously disclosed in “Risk Factors” in Part I, Item 1A in our Annual Report on Form 10-K for the fiscal year ended June 29, 2018. In addition to the other information set forth in this report, you should carefully consider the risk factors discussed in our Annual Report on Form 10-K as they could materially affect our business, financial condition and future results.

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The Risk Factors are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition or operating results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Repurchase of Equity Securities

All repurchases are effected as redemptions in accordance with the Company’s Articles of Association.

On October 29, 2018, the Company’s Board of Directors authorized the repurchase of an additional $2.3 billion of its outstanding ordinary shares. As of December 28, 2018, $2.9 billion remained available for repurchase under the existing repurchase authorization limit. There is no expiration date on this authorization.

The following table sets forth information with respect to all repurchases of our shares made during the fiscal quarter ended December 28, 2018, including statutory tax withholdings related to vesting of employee equity awards:

(In millions, except average price paid per share)	Total Number of Shares Repurchased(1)		Average Price Paid Per Share(1)		Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs		Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(1)
September 29, 2018 through October 26, 2018		—	$	43.87		—	$	709
October 27, 2018 through November 23, 2018		2		43.51		2		2,898
November 24, 2018 through December 28, 2018		1		41.45		1		2,871
Total		3				3

(1) Repurchase of shares including tax withholdings.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Effective February 5, 2019, Gianluca Romano, the Company’s Executive Vice President and Chief Financial Officer will also serve as principal accounting officer replacing Geraldine Hottier-Fayon who had been serving as the Company’s interim principal accounting officer.

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ITEM 6. EXHIBITS

	Incorporated by Reference
Exhibit Number	Description of Exhibit	Form	File No.	Exhibit	Filing Date	Filed Herewith
3.1	Constitution of Seagate Technology public limited company as amended and restated by Special Resolution dated October 19, 2016.	8-K	001-31560	3.10	10/24/2016
3.2	Certificate of Incorporation of Seagate Technology plc.	10-K	001-31560	3.20	8/20/2010
10.1+	Letter Agreement, dated August 22, 2018, by and between Seagate US LLC and Geraldine Hottier-Fayon.					X
10.2+	Letter Agreement, dated September 6, 2018, by and between Seagate US LLC and Kathryn R. Scolnick.					X
10.3+	Letter Agreement, dated December 3, 2018, by and between Seagate US LLC and Gianluca Romano.					X
10.4+	First Amendment to Seagate Deferred Compensation Plan					X
10.5+	First Amendment to Seagate Deferred Compensation Sub-Plan					X
10.6+	Third Amendment to 2015 Seagate Deferred Compensation Plan					X
10.7+	Fifth Amendment to Seagate Deferred Compensation Plan					X
31.1	Certification of the Chief Executive Officer pursuant to rules 13a- 14(a) and 15d -14 (a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
31.2	Certification of the Chief Financial Officer pursuant to rules 13a- 14(a) and 15d -14 (a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.					X
32.1†	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a- 14(b) and 18 U.S.C Section  1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act.					X
101.INS	XBRL Instance Document.					X
101.SCH	XBRL Taxonomy Extension Schema Document.					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase.					X

+ Management contract or compensatory plan or arrangement.

† The certifications attached as Exhibit 32.1 that accompany this Quarterly Report on Form 10-Q are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of Seagate Technology plc under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this Form 10-Q, irrespective of any general incorporation language contained in such filing.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SEAGATE TECHNOLOGY PUBLIC LIMITED COMPANY
DATE:   February 4, 2019	BY:	/s/ Gianluca Romano
		Gianluca Romano
		Executive Vice President and Chief Financial Officer (Principal Financial Officer)
DATE:   February 4, 2019	BY:	/s/ Geraldine Hottier-Fayon
		Geraldine Hottier-Fayon
		Interim Principal Accounting Officer, Corporate Controller and Vice President, Finance

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EX-10.1

Exhibit 10.1

PERSONAL AND CONFIDENTIAL

August 22, 2018

Geraldine Hottier-Fayon

[Employee ID removed]

Dear Geraldine:

It is my pleasure to extend to you an offer for the role of VP & Interim Principal Accounting Officer at Seagate US LLC (“Seagate”). This letter supersedes any prior discussions between us concerning the following terms and conditions and is pending based on the final approval of the Compensation Committee of the Board of Directors of Seagate Technology.

Your new job title will be VP & Interim Principal Accounting Officer. This position will be located in our Cupertino facility and you will report directly to me. If you accept our offer, the effective date of these actions will be August 4, 2018.

We have put together a total compensation package that we believe you will find very attractive. The key elements of this offer are as follows:

• Your annualized base salary will be increased to $300,000, payable biweekly and subject to applicable withholdings.

• Your bonus target will remain 50% of your base salary in the Seagate Executive Performance Bonus plan. Your bonus award may vary based on company earnings and an evaluation of your performance at the end of the fiscal year.

• Seagate will grant you a special cash award in the amount of $100,000 less applicable taxes. The $100,000 special cash award would be payable in February 2019.

• You remain eligible to receive annual equity awards in the form of Performance Share Units (“PSUs”) and Restricted Share Units (“RSUs”).

• Additionally, Seagate will grant you a special equity grant in the amount of $250,000 on September 10, 2018 in the form of Restricted Share Units (“RSUs”). One fourth of the shares subject to the RSU will vest each year on the first four anniversaries of the date of grant.

Vesting of the awards assumes your continued employment with the Company (or an affiliate of the Company) on each vesting date. The actual value of the Seagate shares you receive upon grant and/or vesting of the RSUs may be less than, or more than, the estimated value stated above. The future value of the Seagate shares underlying the Awards is unknown, and cannot be predicted with certainty.

• Seagate policy provides executives with time off for vacation and leave purposes, subject to management approval and business need, and in accordance with applicable legal requirements. Executives do not accrue vacation or annual leave time and will not receive any payout of vacation or leave time at the end of employment.

• You will remain eligible to participate in Seagate’s Deferred Compensation Plan that will allow you to set aside a percentage of your base pay and bonus on a pre-tax basis. This program is in addition to any 401(k) contributions you may make during the year.

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Your acceptance of this offer represents the sole agreement between you and Seagate regarding enhanced compensation as offered in connection with this role. No prior promises, representations or understanding relative to any terms or conditions of this role’s related compensation are to be considered as part of this agreement unless expressed in writing in this letter. Your employment in the new position will remain “at-will” and terminable at any time by yourself or Seagate, with or without cause or notice. However, subject to the terms set forth in the accompanying Fifth Amended and Restated Seagate Technology Executive Severance and Change in Control (CIC) Plan (the “Plan”), you may be eligible for receipt of severance benefits allowance if your employment is terminated involuntarily by Seagate without Cause, as defined in the Plan. A copy of the Plan accompanies this letter for your reference.

Congratulations on your new opportunity, Geraldine! I look forward to working with you to align our organization and deliver exciting first to market storage solutions to our customers. Please contact me should you have any questions.

Sincerely,

Kate Scolnick, Interim Chief Financial Officer

cc: David Mosley, Chief Executive Officer

John Cleveland, SVP, CHRO Communications & Community Engagement

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EX-10.2

Exhibit 10.2

PERSONAL AND CONFIDENTIAL

September 6, 2018

Kathryn R. Scolnick

[Employee ID removed]

Dear Kate:

It is my pleasure to extend to you an offer for the role of SVP & Interim Chief Financial Officer at Seagate US LLC (“Seagate”). This letter supersedes any prior discussions between us concerning the following terms and conditions and is pending based on the final approval of the Compensation Committee of the Board of Directors of Seagate Technology.

Your new job title will be SVP & Interim Chief Financial Officer. This position will be located in our Cupertino facility and you will report directly to me. If you accept our offer, the effective date of these actions will be August 4, 2018.

We have put together a total compensation package that we believe you will find very attractive. The key elements of this offer are as follows:

• Your annualized base salary will be increased to $400,000, payable biweekly and subject to applicable withholdings.

• Your bonus target will remain 75% of your base salary in the Seagate Executive Performance Bonus plan. Your bonus award may vary based on company earnings and an evaluation of your performance at the end of the fiscal year.

• Seagate will grant you a special cash award in the amount of $1,050,000 less applicable taxes. The special cash award would be payable in two tranches, i) $700,000 as soon as administratively feasible with a six month clawback, and ii) $350,000 in February 2020.

As mentioned above, the special cash award has a six-month clawback, whereas, should your employment with Seagate terminate within six months under any circumstances in which you would not be eligible for receipt of severance benefits in accordance with the terms of the Fifth Amended and Restated Seagate Technology Executive Severance and Change in Control (CIC) Plan, then you will be required to repay the full amount of the first tranche of the special cash award.

• You remain eligible to receive annual equity awards in the form of Performance Share Units (“PSUs”) and Restricted Share Units (“RSUs”).

• Additionally, Seagate will grant you a special equity grant in the amount of $1,000,000 on September 10, 2018 in the form of Restricted Share Units (“RSUs”). One fourth of the shares subject to the RSU will vest each year on the first four anniversaries of the date of grant.

Vesting of the awards assumes your continued employment with the Company (or an affiliate of the Company) on each vesting date. The actual value of the Seagate shares you receive upon grant and/or vesting of the RSUs may be less than, or more than, the estimated value stated above. The future value of the Seagate shares underlying the Awards is unknown, and cannot be predicted with certainty.

• Seagate policy provides executives with time off for vacation and leave purposes, subject to management approval and business need, and in accordance with applicable legal requirements. Executives do not accrue vacation or annual leave time and will not receive any payout of vacation or leave time at the end of employment.

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• You will remain eligible to participate in Seagate’s Deferred Compensation Plan that will allow you to set aside a percentage of your base pay and bonus on a pre-tax basis. This program is in addition to any 401(k) contributions you may make during the year.

Your acceptance of this offer represents the sole agreement between you and Seagate regarding enhanced compensation as offered in connection with this role. No prior promises, representations or understanding relative to any terms or conditions of this role’s related compensation are to be considered as part of this agreement unless expressed in writing in this letter. Your employment in the new position will remain “at-will” and terminable at any time by yourself or Seagate, with or without cause or notice. However, subject to the terms set forth in the accompanying Fifth Amended and Restated Seagate Technology Executive Severance and Change in Control (CIC) Plan (the “Plan”), you may be eligible for receipt of severance benefits allowance if your employment is terminated involuntarily by Seagate without Cause, as defined in the Plan. A copy of the Plan accompanies this letter for your reference.

Congratulations on your new opportunity, Kate. I look forward to working with you to align our organization and deliver exciting first to market storage solutions to our customers. Please contact me should you have any questions.

Sincerely,

/s/David Mosley

David Mosley, Chief Executive Officer

I accept the offer and terms above.

My effective date will be: August 4, 2018

/s/ Kathryn R. Scolnick	September 6, 2018
Kathryn R. Scolnick	Date

cc: John Cleveland, SVP, CHRO Communications & Community Engagement

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EX-10.3

Exhibit 10.3

PERSONAL AND CONFIDENTIAL

December 3, 2018

Gianluca Romano

[address removed]

Dear Gianluca:

Thank you for your continued interest in a career opportunity with Seagate US LLC (“Seagate” or the “Company”) an indirect wholly-owned subsidiary of Seagate Technology plc (“Seagate Technology”). Those of us on the Seagate leadership team have enjoyed getting to know you during our recent interactions. We believe you will bring real strength to Seagate and make significant contributions toward helping us achieve our overall goals as we position ourselves for continued growth and market leadership.

Therefore, I am pleased to confirm our offer of employment to you for the position of Chief Financial Officer and Executive Vice President, Finance. This position will be located in our Cupertino facility and you will report directly to me. We are currently planning for you to start on January 21, 2019 as long as you submit the needed documentation in a timely manner and all contingencies described below are satisfied.

We have put together a total compensation package that we believe you will find very attractive. The key elements of this offer are as follows:

• Your annualized base salary will be $600,000.00, payable biweekly and subject to applicable withholdings.

• Seagate will grant you a sign-on bonus of $200,000.00 less applicable taxes. Should your employment with Seagate terminate within two years under any circumstances in which you would not be eligible for receipt of severance benefits in accordance with the terms of the Fifth Amended and Restated Seagate Technology Executive Severance and Change in Control (CIC) Plan, then you will be required to repay the full amount of this bonus.

• Seagate Technology will grant you an equity award in the form of Options and Threshold Performance Share Units (“TPSUs”) with a combined estimated value of $2,400,000.00, subject to your beginning active employment with Seagate on the agreed-upon start date. Your awards are generally granted on the 20^th of the month following your hire date by the Compensation Committee (the “Compensation Committee”) of the Board of Directors of Seagate Technology (the “Board), or its duly appointed representative.

Options: The number of Options to be awarded is equal to 50% of the equity estimated value, divided by the option fair value on the date of grant, rounded up to the nearest share.

Vesting Schedule: One fourth of the shares subject to the Option will vest on the first anniversary of the date of grant and 1/48th of the Options will vest each month thereafter over the next three years.

Expiration Date: Generally, your Option will expire seven years from the date of grant or, if earlier, upon termination of your service with Seagate. Your Option may not be exercised after it expires.

Exercise Price: The exercise price of your Option will be the closing share price on NASDAQ on the date of grant.

Threshold Performance Share Units (TPSUs): The number of TPSUs to be awarded is equal to 50% of the equity estimated value, divided by closing share price on the date of grant, rounded up to the nearest share.

Vesting Schedule: The attached schedule explains how the TPSUs will vest, provided that the award will not vest sooner than at a rate of 25% per year.

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Vesting of the awards assumes your continued employment with the Company (or an affiliate of the Company) on each vesting date. The actual value of the Seagate shares you receive upon grant and/or vesting of the TPSUs or exercise of the Options may be less than, or more than, the estimated value stated above. The future value of the Seagate shares underlying the Awards is unknown, and cannot be predicted with certainty.

An email will be sent to you shortly after the grant date confirming the exercise price of your Option. You will receive your award agreements within a reasonable period of time thereafter. If there are any inconsistencies between this letter and your award agreements, the terms of the award agreements will govern and be binding on both you and Seagate Technology.

• As a key leader, you will be eligible to participate in the Seagate Executive Performance Bonus plan, which has a target of 100% of your base salary. Your bonus award may vary based on company performance and an evaluation of your performance at the end of the fiscal year. The bonus payment is at the sole discretion of the Board and the Compensation Committee.

• You will be provided with relocation services and expenses per company policy, a copy of which accompanies this letter.

• Seagate offers you a comprehensive benefits package including medical, dental, life insurance, vision, flexible spending accounts, and much more. A detailed description of these benefits can be reviewed on the Seagate careers website, or press “Ctrl” and click here.

• Seagate policy provides executives with time off for vacation and leave purposes, subject to management approval and business need, and in accordance with applicable legal requirements. Executives do not accrue vacation or annual leave time and will not receive any payout of vacation or leave time at the end of employment.

• You will be eligible to participate in Seagate’s Deferred Compensation Plan that will allow you to set aside a percentage of your base pay and bonus on a pre-tax basis, beginning at the next enrollment period. This program is in addition to any 401(k) contributions you may make during the year.

Contingencies:

This offer is contingent upon the following:

• Satisfactory completion of a background investigation, reference checks, and obtaining an export license, if required. U.S. citizens and permanent residents are not subject to export control license requirements, but an export license application may be required in other certain circumstances. Please complete and return the attached forms immediately so that we may begin the required checks. We will notify you when the background investigation has been successfully completed and we have confirmed that you are not subject to export control license requirements.

• If you currently serve on any Boards of Directors or Advisory Boards, please advise us of the nature of these organizations. We will review your board service with you and consent to your continuing with these activities so long as they do not create any actual conflict of interest or potential appearance of a conflict of interest with your new Seagate duties.

• Your review and signing of the enclosed Seagate “At-Will Employment, Confidential Information and Invention Assignment Agreement”. Please bring the document along to sign and have witnessed on your first day of employment.

Your confirmation and acceptance of this offer represents an agreement between you and Seagate regarding the terms and conditions of your employment at Seagate. No prior promises, representations or understanding relative to any terms or conditions of this offer of employment are to be considered as part of this agreement unless expressed in writing in this letter. Your employment in this position at Seagate will be “at-will” and terminable at any time by yourself or Seagate, with or without cause or notice. However, subject to the terms set forth in the accompanying Fifth Amended and Restated Seagate Technology Executive Severance and Change in Control Plan (the “Plan”), you may be eligible for receipt of severance benefits allowance if your employment is terminated involuntarily by Seagate without Cause, as defined in the Plan. A copy of the Plan accompanies this letter for your reference.

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Dave Mosley and our management team is excited about the possibility of you joining our team as soon as possible. In the event that you have not accepted this offer by 5 business days after offer date, or you are not able to begin full-time employment with Seagate by January 21, 2018, this offer will be null and void.

I look forward to a successful conclusion to our discussions and a close working relationship. We are confident that you will enjoy working on the Seagate team as we embark upon important and exciting change efforts aimed at connecting Seagate with a world of new partners, customers and opportunities.

Sincerely,

SEAGATE US LLC

David Mosley, CEO

I accept the offer above.

My start date will be: January 8, 2019
/s/ Gianluca Romano	December 3, 2018
Gianluca Romano	Date

cc: John Cleveland, CHRO

To expedite the process, please complete the forms* below and email to [e-mail address removed] In addition, if you have not already done so, please email a copy of your resume.

Attachments:

At-Will Employment, Confidential Information and Invention Assignment Agreement (Read Only)

Copy of Offer Letter to be signed and returned*

Employment/Work Assignment Questionnaire*

Global ID Activation Request*

Fifth Amended and Restated Seagate Technology Executive Severance and Change in Control Plan

TPSU Vesting Schedule

Relocation agreement*

3

EX-10.4

Exhibit 10.4

FIRST AMENDMENT

SEAGATE DEFERRED COMPENSATION PLAN

The Seagate Deferred Compensation Plan, as amended and restated as of January 1, 2010 (the “Plan”), is hereby amended by this First Amendment (the “Amendment”).

WHEREAS, for purposes of this Amendment, capitalized terms used herein that are not defined shall have the meanings given to them in the Plan;

WHEREAS, Seagate US LLC (the “Company”) maintains the Plan, which is a nonqualified deferred compensation plan, for the benefit of eligible employees of the Company and Participating Companies;

WHEREAS, Section 10.4 of the Plan document provides that the Seagate Benefits Administration Committee (the “Committee”) has the authority to adopt and execute any amendments to the Plan; and

WHEREAS, pursuant to authority granted to the Committee under Section 10.4, the Committee has determined that it is appropriate to amend the Plan document to (1) change the distribution payment date in the event a Participant dies prior to receiving or while receiving benefits under the Plan; (2) provide procedures related to domestic relations orders; and (3) make other minor clarifying changes.

NOW, THEREFORE, BE IT RESOLVED, that the Amendment, as set forth in the attached Exhibit A, is hereby approved and adopted effective as specified in Exhibit A.

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Exhibit A

FIRST AMENDMENT

SEAGATE DEFERRED COMPENSATION PLAN

The Seagate Deferred Compensation Plan, as amended and restated as of January 1, 2010 (the “Plan”), is hereby amended as follows:

1. Effective January 1, 2019, Section 1.3 of the Plan is amended in its entirety to read as follows:

“1.3    Beneficiary. “Beneficiary” or “Beneficiaries” means the beneficiary or beneficiaries last designated in writing by a Participant in accordance with procedures established by the Committee from time to time to receive the benefits specified hereunder in the event of the Participant’s death. No Beneficiary designation shall become effective unless and until it is filed with the Committee during the Participant’s lifetime. In the event a Participant is married and wishes to designate a non-spouse Beneficiary, spousal consent shall be required; provided, however, that if spousal consent is not obtained, the beneficiary designation shall be invalid.”

2. Effective January 1, 2019, Section 1.4 of the Plan is amended in its entirety to read as follows:

“1.4    Board of Directors. “Board of Directors” or “Board” means the Board of Directors of the Company.”

3. Effective January 1, 2019, Section 1.6 of the Plan is amended in its entirety to read as follows:

“1.6    Committee. “Committee” means the Seagate Benefits Administrative Committee.”

4. Effective January 1, 2019, Section 7.2(d) of the Plan is amended in its entirety to read as follows:

“(d)    Death Prior to or While Receiving Benefits. Notwithstanding any other provision of the Plan, if the Participant dies prior to receiving or while receiving any or all of his or her Account, such Participant’s Distributable Amount shall be paid to his or her Beneficiary or Beneficiaries in a cash lump sum payment including all vested and unvested Company Contributions no later than December 31 of the year following the calendar year during which the Participant’s death occurs.”

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5. Effective January 1, 2019, the Plan is hereby amended to add a new Section 7.7:

“7.7    Domestic Relations Order. The Committee is authorized, in its sole discretion, to satisfy any payments to an individual other than the Participant with amounts from the Participant’s Account to the extent necessary to comply with a domestic relations order, as defined in Code section 414(p)(l)(B). Payments to satisfy a domestic relations order will commence as soon as administratively possible during the first month following the end of the calendar quarter in which the Committee approves the distribution pursuant to the domestic relations order.”

6. Effective January 1, 2019, Section 8.1 of the Plan is amended in its entirety to read as follows:

“8.1    Committee. The Committee shall administer the Plan.”

In WITNESS WHEREOF, the Seagate Benefits Administrative Committee, by its duly authorized delegate, has executed this Amendment to the Plan on December 21, 2018.

By:	/s/ Janet Farabaugh
	Janet Farabaugh

Title: Senior Director, Global Benefits

3

EX-10.5

Exhibit 10.5

FIRST AMENDMENT

SEAGATE DEFERRED COMPENSATION SUB-PLAN

The Seagate Deferred Compensation Sub-Plan, as amended and restated as of January 1, 2010 (the “Plan”), is hereby amended by this First Amendment (the “Amendment”).

WHEREAS, for purposes of this Amendment, capitalized terms used herein that are not defined shall have the meanings given to them in the Plan;

WHEREAS, Seagate US LLC (the “Company”) maintains the Plan, which is a nonqualified deferred compensation plan, for the benefit of eligible employees of the Company and Participating Companies;

WHEREAS, Section 10.4 of the Plan document provides that the Seagate Benefits Administration Committee (the “Committee”) has the authority to adopt and execute any amendments to the Plan; and

WHEREAS, pursuant to authority granted to the Committee under Section 10.4, the Committee has determined that it is appropriate to amend the Plan document to (1) change the distribution payment date in the event a Participant dies prior to receiving or while receiving benefits under the Plan; (2) provide procedures related to domestic relations orders; and (3) make other minor clarifying changes.

NOW, THEREFORE, BE IT RESOLVED, that the Amendment, as set forth in the attached Exhibit A, is hereby approved and adopted effective as specified in Exhibit A.

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Exhibit A

FIRST AMENDMENT

SEAGATE DEFERRED COMPENSATION SUB-PLAN

The Seagate Deferred Compensation Sub-Plan, as amended and restated as of January 1, 2010 (the “Plan”), is hereby amended as follows:

1. Effective January 1, 2019, Section 1.2 of the Plan is amended in its entirety to read as follows:

“1.2 Beneficiary. “Beneficiary” or “Beneficiaries” means the beneficiary or beneficiaries last designated in writing by a Participant in accordance with procedures established by the Committee from time to time to receive the benefits specified hereunder in the event of the Participant’s death. No Beneficiary designation shall become effective unless and until it is filed with the Committee during the Participant’s lifetime. In the event a Participant is married and wishes to designate a non-spouse Beneficiary, spousal consent shall be required; provided, however, that if spousal consent is not obtained, the beneficiary designation shall be invalid.”

2. Effective January 1, 2019, Section 1.3 of the Plan is amended in its entirety to read as follows:

“1.3 Board of Directors. “Board of Directors” or “Board” means the Board of Directors of the Company.”

3. Effective January 1, 2019, Section 1.5 of the Plan is amended to read as follows:

“1.5 Committee. “Committee” means the Seagate Benefits Administrative Committee.”

4. Effective January 1, 2019, Section 7.2(d) of the Plan is amended in its entirety to read as follows:

“(d) Death Prior to or While Receiving Benefits. Notwithstanding any other provision of the Plan, if the Participant dies prior to receiving or while receiving any or all of his or her Account, such Participant’s Distributable Amount shall be paid to his or her Beneficiary or Beneficiaries in a cash lump sum payment including all vested and unvested Company Contributions no later than December 31 of the year following the calendar year during which the Participant’s death occurs.”

2

5. Effective January 1, 2019, the Plan is hereby amended to add a new Section 7.6:

“7.6 Domestic Relations Order. The Committee is authorized, in its sole discretion, to satisfy any payments to an individual other than the Participant with amounts from the Participant’s Account to the extent necessary to comply with a domestic relations order, as defined in Code section 414(p)(l)(B). Payments to satisfy a domestic relations order will commence as soon as administratively possible during the first month following the end of the calendar quarter in which the Committee approves the distribution pursuant to the domestic relations order.”

In WITNESS WHEREOF, the Seagate Benefits Administrative Committee, by its duly authorized delegate, has executed this Amendment to the Plan on December 21, 2018.

By:	/s/ Janet Farabaugh
	Janet Farabaugh

Title: Senior Director, Global Benefits

3

EX-10.6

Exhibit 10.6

THIRD AMENDMENT

2015 SEAGATE DEFERRED COMPENSATION PLAN

The 2015 Seagate Deferred Compensation Plan, effective as of January 1, 2015 (the “Plan”), is hereby amended by this Third Amendment (the “Amendment”).

WHEREAS, for purposes of this Amendment, capitalized terms used herein that are not defined shall have the meanings given to them in the Plan;

WHEREAS, Seagate US LLC (the “Company”) maintains the Plan, which is a nonqualified deferred compensation plan, for the benefit of eligible employees of the Company and Participating Companies;

WHEREAS, nonqualified deferred compensation plans governing compensation deferred on or after January 1, 2005 must comply with Internal Revenue Code section 409A (“Section 409A”) or subject participants to adverse tax consequences;

WHEREAS, the Seagate Benefits Administrative Committee (the “Committee”) has administered and construed the Plan in a manner consistent with the requirements of Section 409A by:

(1) relying upon a determination that an individual is disabled under the Company’s long-term disability plan for purposes of concluding that a Participant has experienced a “Disability” under this Plan;

(2) not permitting the offset of Participant deferrals by any amounts necessary to satisfy a debt owed by the Participant to the Company;

(3) administering and construing the distribution payment date in the event a Participant dies consistent with the timing permitted by Section 409A, and subsequently, the 2016 proposed regulations under Section 409A;

(4) authorizing the Committee to satisfy any payments to an individual other than the Participant with amounts from the Participant’s Account to the extent necessary to comply with a domestic relations order; and

(5) interpreting certain distribution elections in a manner consistent with Section 409A and relevant Plan documents.

WHEREAS, Section 8.5 of the Plan document provides that the Committee has the authority to adopt and execute any amendments to the Plan; and

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WHEREAS, pursuant to authority granted to the Committee under Section 8.5, the Committee has determined that it is appropriate to amend the Plan document to (1) clarify the definition of “Disability” to state the Committee’s intent to rely upon a determination that an individual is disabled under the Company’s long-term disability plan or a determination of the Social Security Administration that an individual is disabled for purposes of concluding that a Participant has experienced a “Disability” under this Plan; (2) make conforming changes to the claims procedures; (3) remove the right to offset Participant deferrals by amounts necessary to satisfy debts to the Company owed by the Participant; (4) change the distribution payment date in the event a Participant dies prior to receiving or while receiving benefits under the Plan, as permitted by Section 409A; (5) clarify the operation of the Plan terms relating to Scheduled In-Service Withdrawals; (6) provide procedures related to domestic relations orders; (7) conform the Plan to the Committee’s delegation of settlor authority; and (8) make other minor clarifying changes.

NOW, THEREFORE, BE IT RESOLVED, that the Amendment, as set forth in the attached Exhibit A, is hereby approved and adopted effective as specified in Exhibit A.

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Exhibit A

THIRD AMENDMENT

2015 SEAGATE DEFERRED COMPENSATION PLAN

The 2015 Seagate Deferred Compensation Plan, effective as of January 1, 2015 (the “Plan”), is hereby amended as follows:

1. Effective January 1, 2019, Section 1.3 is amended in its entirety to read as follows:

“1.3    Beneficiary. “Beneficiary” or “Beneficiaries” means the beneficiary or beneficiaries last designated in writing by a Participant in accordance with procedures established by the Committee from time to time to receive the benefits specified hereunder in the event of the Participant’s death. No Beneficiary designation shall become effective unless and until it is filed with the Committee during the Participant’s lifetime. In the event a Participant is married and wishes to designate a non-spouse Beneficiary, spousal consent shall be required; provided, however, that if spousal consent is not obtained, the beneficiary designation shall be invalid.”

2. Effective January 1, 2019, Section 1.4 is amended in its entirety to read as follows:

“1.4    Board of Directors. “Board of Directors” or “Board” means the Board of Directors of the Company.”

3. Effective January 1, 2019, Section 1.9 is amended in its entirety to read as follows:

“1.9    Committee. “Committee” means the Seagate Benefits Administrative Committee.”

4. Effective April 1, 2018, Section 1.13 is amended in its entirety to read as follows:

“1.13    Disability. “Disability” means a condition under which a Participant either (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company. A Participant will have a “Disability” for purposes of this Plan if the individual is determined to be disabled either under the Company’s long-term disability plan or by the Social Security Administration. Section 9.7 will apply when determining whether a Participant has experienced a “Disability” under this Plan. Sections 9.1 through 9.6 of this Plan will not apply to that issue, but will apply to any other issue relating to Plan benefits.”

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5. Effective January 1, 2019, Section 1.24 is amended in its entirety to read as follows:

“1.24    Payment Commencement Date. “Payment Commencement Date” means as follows: (i) with respect to payments due to Disability and, subject to Section 6.5, payments due to separation from service, during the month following the end of the calendar quarter in which the Participant suffers a condition that constitutes a Disability or separates from service, or, during the year following the year in which the Participant suffers a condition that constitutes a Disability or separates from service, depending on the Participant’s election, and (ii) with respect to Scheduled In-Service Withdrawals, as set forth in Section 6.3(d). If a Participant has not elected a Payment Commencement Date under this Section 1.24, the Payment Commencement Date shall be during the first month following the end of the calendar quarter in which the Participant has a Distribution Event.

            Notwithstanding any elections by a Participant, and subject to Section 6.5, payments with respect to any Distribution Event may commence between (a) the date of the Payment Commencement Date, and (b) the end of the year in which the Payment Commencement Date, or if later, on or before the 15th day of the third calendar month following the Payment Commencement Date. However, a Participant will not be permitted, directly or indirectly, to designate the taxable year of the payment. Any payment that complies with this Section and the payment delay for Specified Employees provided in Section 6.5 shall be deemed for all purposes to comply with the Plan requirements regarding the time and form of payment.”

6. Effective January 1, 2019, Section 3.1(d) of the Plan is amended to delete the following from the end thereof:

“; and (iii) any amounts necessary to satisfy any debt owed by the Participant to the Company.”

7. Effective January 1, 2019, Section 6.1(a) of the Plan is amended to add the following sentence to the end thereof:

“Subject to Section 6.5, in the event a Participant has a Disability, the Participant shall receive the Distributable Amount in accordance with the Participant’s distribution elections for separation from service.”

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8. Effective January 1, 2019, Section 6.2(d) of the Plan is amended in its entirety to read as follows:

“(d)       Death Prior to or While Receiving Benefits. Notwithstanding any other provision of the Plan, if the Participant dies prior to receiving or while receiving any or all of his or her Account, such Participant’s Distributable Amount shall be paid to his or her Beneficiary or Beneficiaries in a cash lump sum payment including all vested and unvested Company Contributions no later than December 31 of the year following the calendar year during which the Participant’s death occurs.”

9. Effective January 1, 2019, Section 6.3(a) of the Plan is amended in its entirety to read as follows:

“(a)       A Participant’s Scheduled In-Service Withdrawal election must specify a Scheduled In-Service Withdrawal date that is at least two (2) years beyond the end of the Plan Year to which such deferral election applies. A Participant may amend or postpone to a later future year his or her Scheduled In-Service Withdrawal election (including, without limitation, the form and/or timing of the distribution); provided, however, such amendment or postponement (i) occurs with at least one (1) year’s advance notice thereof, (ii) the change does not take effect until at least one year after the Participant submits the amendment or postponement; and (iii) the change provides for the deferral of the date of the payment for a minimum of five additional years.”

10. Effective January 1, 2019, Section 6.3(d) of the Plan is amended in its entirety to read as follows:

“(d)       Subject to section 6.6, payment of a Scheduled In-Service Withdrawal shall be made in either a single lump sum or in annual installments over a two (2), three (3), four (4) or five (5)-year period (as elected by the Participant); provided, however, that if a Participant’s total Distributable Amount for all Scheduled In-Service Withdrawals scheduled for payment to commence on the same Payment Commencement Date is Twenty-Five Thousand Dollars ($25,000) or less as of the Payment Commencement Date, such Distributable Amount shall be distributed in a lump sum on the Payment Commencement Date. Lump sum distributions shall be paid in the year specified on the election form. Annual installment distributions shall commence in the year specified on the election form, and shall continue to be paid as soon as administratively practicable after the beginning of each subsequent calendar year for the duration elected on the election form.”

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11. Effective January 1, 2019, the Plan is amended to add a new Section 6.3(f) and (g):

“(f)       A separate bookkeeping Account shall be established for each year that a Participant elects to receive a Scheduled In-Service Withdrawal. Once a Participant has elected to receive five different Scheduled In-Service Withdrawals, the Participant may not elect to receive a Scheduled In-Service Withdrawal in a different year until at least one of the existing five Scheduled In-Service Withdrawal accounts has been completely distributed.

(g)       The following default rules apply to any Scheduled In-Service Withdrawal election that does not specify a distribution date that is more than two (2) years after the end of the Plan Year in which the election was made, which is the earliest distribution date permitted by the Plan (the “Earliest Year Permitted by the Plan”): (i) the election shall be deemed to defer such amounts until the Earliest Year Permitted by the Plan and any deferral amounts subject to the election shall be credited to the Participant’s existing Scheduled In-Service Withdrawal account (if any) for the Earliest Year Permitted by the Plan; (2) if the Participant does not have an existing Scheduled In-Service Withdrawal account scheduled to be distributed in the Earliest Year Permitted by the Plan, and the Participant has less than five existing Scheduled In-Service Withdrawal accounts, the Committee will establish a new Scheduled In-Service Withdrawal account for the Participant and any deferral amounts subject to the election shall be credited to the Participant’s new Scheduled In-Service Withdrawal account, which shall be distributed at the Earliest Year Permitted by the Plan; and (3) if, at the time of the election, the Participant already has five existing Scheduled In-Service accounts, all of which are scheduled to be distributed before the Earliest Year Permitted by the Plan, the Committee will credit the deferral amounts subject to the election to the Participant’s account that is scheduled to be distributed upon the Participant’s Separation from Service. If the Committee establishes a new Scheduled In-Service Withdrawal account for a Participant pursuant to this section, the new account will be treated as one of the Participant’s five Scheduled In-Service Withdrawal accounts and count toward the limit provided in section (f) above.”

12. Effective January 1, 2019, the Plan is amended to add a new Section 6.9:

“6.9       Domestic Relations Order. The Committee is authorized, in its sole discretion, to satisfy any payments to an individual other than the Participant with amounts from the Participant’s Account to the extent necessary to comply with a domestic relations order, as defined in Code section 414(p)(l)(B). Payments to satisfy a domestic relations order will commence as soon as administratively possible during the first month following the end of the calendar quarter in which the Committee approves the distribution pursuant to the domestic relations order.”

13. Effective January 1, 2019, Section 7.1 of the Plan is amended in its entirety to read as follows:

“7.1       Committee. The Committee shall administer the Plan.”

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14. Effective January 1, 2019, Section 8.5 of the Plan is amended in its entirety to read as follows:

“8.5       Amendment, Modification, Suspension or Termination. The Committee (or its delegate) has the authority to adopt and execute any amendment to the Plan provided that (1) any such amendment does not significantly increase the benefits payable to members of the Committee, except in their capacity as members of a broad class of employees for whom benefits are being increased, and (2) to the extent the Board retains authority to amend the Plan, the Committee cannot change the Board’s authority or any amendment adopted by the Board. Any such amendment shall be stated in an instrument in writing, executed in the same manner as the Plan. The Committee (or its delegate) may amend, modify, suspend or terminate the Plan in whole or in part, except that no amendment, modification, suspension or termination shall have any retroactive effect to reduce any amounts allocated to a Participant’s Account, provided, however, that a termination or suspension of the Plan or any Plan amendment or modification that will significantly increase costs to the Company shall be subject to approval by the Board. In the event that this Plan is terminated, the timing of the disposition of the amounts credited to a Participant’s Account shall occur in accordance with Section 6.2, subject to earlier distribution at the discretion of the Committee; provided however, that upon any termination of this Plan, to the extent permissible under Section 409A of the Code without the imposition of any additional or accelerated taxes under Section 409A of the Code, the Company may in its sole discretion, accelerate the payment of all such amounts credited as of the date of termination of this Plan; provided that all such distributions (i) commence no earlier than the date that is twelve (12) months following the date of such termination (or such earlier date permitted under Section 409A of the Code without the imposition of any additional or accelerated taxes under Section 409A of the Code), and (ii) are completed by the date that is twenty-four (24) months following the date of such termination (or such later date permitted under Section 409A of the Code without the imposition of any additional or accelerated taxes under Section 409A of the Code). In addition, payments may be accelerated upon Plan termination as provided above only if, to the extent required under Code Section 409A, (i) all other nonqualified deferred compensation “account balance plans” (as such term is defined under Code Section 409A), in which any Participant hereunder participates are terminated along with this Plan, and (ii) the Company does not adopt any new nonqualified deferred compensation “account balance plan” (as such term is defined under Code Section 409A), for three years following the date of such Plan termination.”

15. Effective April 1, 2018, Article IX is hereby amended to add a new Section 9.7:

“9.7       Disability Determinations. Whether a Participant has experienced a “Disability” as defined by Section 1.13 of this Plan will be determined by the Social Security Administration or under the terms of the Company’s long-term disability plan in accordance with those claims procedures. The claims procedures set forth in Section 9.1 through 9.6 of this Article IX will not apply to that question, but will apply to any other issues relating to Plan benefits.”

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In WITNESS WHEREOF, the Seagate Benefits Administrative Committee, by its duly authorized delegate, has executed this Amendment to the Plan on December 21, 2018.

By:	/s/ Janet Farabaugh
	Janet Farabaugh

Title: Senior Director, Global Benefits

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EX-10.7

Exhibit 10.7

FIFTH AMENDMENT

SEAGATE DEFERRED COMPENSATION PLAN

The Seagate Deferred Compensation Plan, as amended and restated as of January 1, 2009 (the “Plan”), is hereby amended by this Fifth Amendment (the “Amendment”).

WHEREAS, for purposes of this Amendment, capitalized terms used herein that are not defined shall have the meanings given to them in the Plan;

WHEREAS, Seagate US LLC (the “Company”) maintains the Plan, which is a nonqualified deferred compensation plan, for the benefit of eligible employees of the Company and Participating Companies;

WHEREAS, nonqualified deferred compensation plans governing compensation deferred on or after January 1, 2005 must comply with Internal Revenue Code section 409A (“Section 409A”) or subject participants to adverse tax consequences;

WHEREAS, the Seagate Benefits Administrative Committee (the “Committee”) has administered and construed the Plan consistent with the requirements of Section 409A by:

(1) relying upon a determination that an individual is disabled under the Company’s long-term disability plan for purposes of concluding that a Participant has experienced a “Disability” under this Plan;

(2) administering and construing the distribution payment date in the event a Participant dies consistent with the timing permitted by Section 409A, and subsequently, the 2016 proposed regulations under Section 409A;

(3) authorizing the Committee to satisfy any payments to an individual other than the Participant with amounts from the Participant’s Account to the extent necessary to comply with a domestic relations order; and

(4) interpreting certain distribution elections in a manner consistent with Section 409A and relevant Plan documents.

WHEREAS, Section 9.4 of the Plan document provides that the Committee has the authority to adopt and execute any amendments to the Plan; and

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WHEREAS, pursuant to authority granted to the Committee under Section 9.4, the Committee has determined that it is appropriate to amend the Plan document to (1) clarify the definition of “Disability” to state the Committee’s intent to rely upon a determination that an individual is disabled under the Company’s long-term disability plan or a determination of the Social Security Administration that an individual is disabled for purposes of concluding that a Participant has experienced a “Disability” under this Plan; (2) make conforming changes to the claims procedures; (3) change the distribution payment date in the event a Participant dies prior to receiving or while receiving benefits under the Plan, as permitted by Section 409A; (4) clarify the operation of the Plan terms relating to Scheduled In-Service Withdrawals; (5) provide procedures related to domestic relations orders; (6) conform the Plan to the Committee’s delegation of settlor authority; and (7) make other minor clarifying changes.

NOW, THEREFORE, BE IT RESOLVED, that the Amendment, as set forth in the attached Exhibit A, is hereby approved and adopted effective as specified in Exhibit A.

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Exhibit A

FIFTH AMENDMENT

SEAGATE DEFERRED COMPENSATION PLAN

The Seagate Deferred Compensation Plan, as amended and restated as of January 1, 2009 (the Plan”), is hereby amended as follows:

1. Effective January 1, 2019, Section 1.3 is amended in its entirety to read as follows:

“1.3    Beneficiary. “Beneficiary” or “Beneficiaries” means the beneficiary or beneficiaries last designated in writing by a Participant in accordance with procedures established by the Committee from time to time to receive the benefits specified hereunder in the event of the Participant’s death. No Beneficiary designation shall become effective unless and until it is filed with the Committee during the Participant’s lifetime. In the event a Participant is married and wishes to designate a non-spouse Beneficiary, spousal consent shall be required; provided, however, that if spousal consent is not obtained, the beneficiary designation shall be invalid.”

2. Effective January 1, 2019, Section 1.4 is amended in its entirety to read as follows:

“1.4    Board of Directors. “Board of Directors” or “Board” means the Board of Directors of the Company.”

3. Effective January 1, 2019, Section 1.9 is amended in its entirety to read as follows:

“1.9    Committee. “Committee” means the Seagate Benefits Administrative Committee.”

4. Effective April 1, 2018, Section 1.15 is amended in its entirety to read as follows:

“1.15     Disability. “Disability” means a condition under which a Participant either (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company. A Participant will have a “Disability” for purposes of this Plan if the individual is determined to be disabled either under the Company’s long-term disability plan or by the Social Security Administration. Section 10.7 will apply when determining whether a Participant has experienced a “Disability” under this Plan. Sections 10.1 through 10.6 of this Plan will not apply to that issue, but will apply to any other issue relating to Plan benefits.”

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5. Effective January 1, 2019, Section 1.24 is amended in its entirety to read as follows:

“1.24    Payment Commencement Date. “Payment Commencement Date” means as follows: (i) with respect to payments due to Disability and, subject to Section 1.17, payments due to separation from service, during the month following the end of the calendar quarter in which the Participant suffers a condition that constitutes a Disability or separates from service, or, during the year following the year in which the Participant suffers a condition that constitutes a Disability or separates from service, depending on the Participant’s election, and (ii) with respect to Scheduled In-Service Withdrawals, as set forth in Section 7.3(d). If a Participant has not elected a Payment Commencement Date under this Section 1.24, the Payment Commencement Date shall be during the first month following the end of the calendar quarter in which the Participant has a Distribution Event.

Notwithstanding any elections by a Participant, and subject to Section 6.5, payments with respect to any Distribution Event may commence between (a) the date of the Payment Commencement Date, and (b) the end of the year in which the Payment Commencement Date, or if later, on or before the 15th day of the third calendar month following the Payment Commencement Date. However, a Participant will not be permitted, directly or indirectly, to designate the taxable year of the payment. Any payment that complies with this Section and the payment delay for Specified Employees provided in Section 6.5 shall be deemed for all purposes to comply with the Plan requirements regarding the time and form of payment.”

6. Effective January 1, 2019, Section 7.1(a) of the Plan is amended to add the following sentence to the end thereof:

“Subject to Section 1.17, in the event a Participant has a Disability, the Participant shall receive the Distributable Amount in accordance with the Participant’s distribution elections for separation from service.”

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7. Effective January 1, 2019, Section 7.2(d) of the Plan is amended in its entirety to read as follows:

“(d)    Death Prior to or While Receiving Benefits. Notwithstanding any other provision of the Plan, if the Participant dies prior to receiving or while receiving any or all of his or her Account, such Participant’s Distributable Amount shall be paid to his or her Beneficiary or Beneficiaries in a cash lump sum payment including all vested and unvested Company Contributions no later than December 31 of the year following the calendar year during which the Participant’s death occurs.”

8. Effective January 1, 2019, Section 7.3(d) of the Plan is amended in its entirety to read as follows:

“(d)    Subject to section 7.5, payment of a Scheduled In-Service Withdrawal shall be made in either a single lump sum or in annual installments over a two (2), three (3), four (4) or five (5)-year period (as elected by the Participant); provided, however, that if a Participant’s total Distributable Amount for all Scheduled In-Service Withdrawals scheduled for payment to commence on the same Payment Commencement Date is Twenty-Five Thousand Dollars ($25,000) or less as of the Payment Commencement Date, such Distributable Amount shall be distributed in a lump sum on the Payment Commencement Date. Lump sum distributions shall be paid in the year specified on the election form. Annual installment distributions shall commence in the year specified on the election form, and shall continue to be paid as soon as administratively practicable after the beginning of each subsequent calendar year for the duration elected on the election form.”

9. Effective January 1, 2019, the Plan is hereby amended to add a new Section 7.8:

“7.8    Domestic Relations Order. The Committee is authorized, in its sole discretion, to satisfy any payments to an individual other than the Participant with amounts from the Participant’s Account to the extent necessary to comply with a domestic relations order, as defined in Code section 414(p)(l)(B). Payments to satisfy a domestic relations order will commence as soon as administratively possible after the first day of the month following the end of the calendar quarter in which the Committee approves the distribution pursuant to the domestic relations order.”

10. Effective January 1, 2019, Section 8.1 of the Plan is amended in its entirety to read as follows:

“8.1    Committee. The Committee shall administer the Plan.”

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11. Effective January 1, 2019, Section 9.4 of the Plan is amended in its entirety to read as follows:

“9.4    Amendment, Modification, Suspension or Termination. The Committee (or its delegate) has the authority to adopt and execute any amendment to the Plan provided that (1) any such amendment does not significantly increase the benefits payable to members of the Committee, except in their capacity as members of a broad class of employees for whom benefits are being increased, and (2) to the extent the Board retains authority to amend the Plan, the Committee cannot change the Board’s authority or any amendment adopted by the Board. Any such amendment shall be stated in an instrument in writing, executed in the same manner as the Plan. The Committee (or its delegate) may amend, modify, suspend or terminate the Plan in whole or in part, except that no amendment, modification, suspension or termination shall have any retroactive effect to reduce any amounts allocated to a Participant’s Account, provided, however, that a termination or suspension of the Plan or any Plan amendment or modification that will significantly increase costs to the Company shall be subject to approval by the Board. In the event that this Plan is terminated, the timing of the disposition of the amounts credited to a Participant’s Account shall occur in accordance with Section 7.2, subject to earlier distribution at the discretion of the Committee; provided however, that upon any termination of this Plan, to the extent permissible under Section 409A of the Code without the imposition of any additional or accelerated taxes under Section 409A of the Code, the Company may in its sole discretion, accelerate the payment of all such amounts credited as of the date of termination of this Plan; provided that all such distributions (i) commence no earlier than the date that is twelve (12) months following the date of such termination (or such earlier date permitted under Section 409A of the Code without the imposition of any additional or accelerated taxes under Section 409A of the Code), and (ii) are completed by the date that is twenty-four (24) months following the date of such termination (or such later date permitted under Section 409A of the Code without the imposition of any additional or accelerated taxes under Section 409A of the Code). In addition, payments may be accelerated upon Plan termination as provided above only if, to the extent required under Code Section 409A, (i) all other nonqualified deferred compensation “account balance plans” (as such term is defined under Code Section 409A), in which any Participant hereunder participates are terminated along with this Plan, and (ii) the Company does not adopt any new nonqualified deferred compensation “account balance plan” (as such term is defined under Code Section 409A), for three years following the date of such Plan termination.”

12. Effective April 1, 2018, Article X is hereby amended to add a new Section 10.7:

“10.7    Disability Determinations. Whether a Participant has experienced a “Disability” as defined by Section 1.15 of this Plan will be determined by the Social Security Administration or under the terms of the Company’s long-term disability plan in accordance with those claims procedures. The claims procedures set forth in Section 10.1 through 10.6 of this Article X will not apply to that question, but will apply to any other issues relating to Plan benefits.”

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In WITNESS WHEREOF, the Seagate Benefits Administrative Committee, by its duly authorized delegate, has executed this Amendment to the Plan on December 21, 2018.

By:	/s/ Janet Farabaugh
	Janet Farabaugh
Title: Senior Director, Global Benefits

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, William D. Mosley, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Seagate Technology plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  February 4, 2019	/s/ William D. Mosley
	Name: William D. Mosley
	Title: Chief Executive Officer and Director

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Gianluca Romano, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Seagate Technology plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 4, 2019	/s/ Gianluca Romano
	Name:	Gianluca Romano
	Title:	Executive Vice President and Chief Financial Officer (Principal Financial Officer )

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

This certification is not to be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and does not constitute a part of the Quarterly Report of Seagate Technology plc (the “Company”) on Form 10-Q for the fiscal quarter ended December 28, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”).

In connection with the Report, we, William D. Mosley, Chief Executive Officer of the Company, and Gianluca Romano, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:   February 4, 2019	/s/ William D. Mosley
	Name: William D. Mosley
	Title: Chief Executive Officer and Director
Date:   February 4, 2019	/s/ Gianluca Romano
	Name: Gianluca Romano
	Title: Executive Vice President and Chief Financial Officer (Principal Financial Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Dec. 28, 2018	Jan. 29, 2019
Document And Entity Information
Entity Registrant Name	Seagate Technology plc
Entity Central Index Key	0001137789
Document Type	10-Q
Document Period End Date	Dec. 28, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-28
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		281,740,077
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Emerging Growth Company	false
Entity Smaller Reporting Company	false

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 28, 2018	Jun. 29, 2018
Current assets:
Cash and cash equivalents	$ 1,357	$ 1,853
Accounts receivable, net	1,058	1,184
Inventories	1,097	1,053
Other current assets	164	220
Total current assets	3,676	4,310
Property, equipment and leasehold improvements, net	1,823	1,792
Investment in debt security	1,300	1,275
Goodwill	1,237	1,237
Other intangible assets, net	149	188
Deferred income taxes	416	417
Other assets, net	188	191
Total Assets	8,789	9,410
Current liabilities:
Accounts payable	1,442	1,728
Accrued employee compensation	164	253
Accrued warranty	105	112
Current portion of long-term debt	0	499
Accrued expenses	589	598
Total current liabilities	2,300	3,190
Long-term accrued warranty	117	125
Long-term accrued income taxes	6	10
Other non-current liabilities	108	100
Long-term debt, less current portion	4,324	4,320
Total Liabilities	6,855	7,745
Shareholders' Equity:
Ordinary shares and additional paid-in capital	6,457	6,377
Accumulated other comprehensive loss	(21)	(16)
Accumulated deficit	(4,502)	(4,696)
Total Equity	1,934	1,665
Total Liabilities and Equity	$ 8,789	$ 9,410

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Income Statement [Abstract]
Revenue	$ 2,715.0	$ 2,914.0	$ 5,706.0	$ 5,546.0
Cost of revenue	1,921.0	2,037.0	3,999.0	3,933.0
Product development	246.0	250.0	512.0	513.0
Marketing and administrative	120.0	142.0	235.0	287.0
Amortization of intangibles	5.0	19.0	11.0	41.0
Restructuring and other, net	7.0	33.0	30.0	84.0
Total operating expenses	2,299.0	2,481.0	4,787.0	4,858.0
Income from operations	416.0	433.0	919.0	688.0
Interest income	22.0	6.0	46.0	13.0
Interest expense	(56.0)	(61.0)	(114.0)	(122.0)
Other, net	16.0	(7.0)	15.0	(20.0)
Other expense, net	(18.0)	(62.0)	(53.0)	(129.0)
Income before income taxes	398.0	371.0	866.0	559.0
Provision for income taxes	14.0	212.0	32.0	219.0
Net income	$ 384.0	$ 159.0	$ 834.0	$ 340.0
Net income per share:
Basic (in dollars per share)	$ 1.35	$ 0.55	$ 2.92	$ 1.18
Diluted (in dollars per share)	$ 1.34	$ 0.55	$ 2.88	$ 1.17
Number of shares used in per share calculations:
Basic (in shares)	285	288	286	289
Diluted (in shares)	287	291	290	291
Cash dividends declared per ordinary share (in dollars per share)	$ 0.63	$ 0.63	$ 1.26	$ 1.26

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 384	$ 159	$ 834	$ 340
Cash flow hedges
Change in net unrealized gain (loss) on cash flow hedges	(4)	0	(1)	0
Less: reclassification for amounts included in net income	(1)	0	(2)	0
Net change	(5)	0	(3)	0
Marketable securities
Change in net unrealized gain (loss) on available-for-sale debt securities	0	0	0	0
Less: reclassification for amounts included in net income	0	0	0	0
Net change	0	0	0	0
Post-retirement plans
Change in unrealized gain (loss) on post-retirement plans	0	0	0	0
Less: reclassification for amounts included in net income	0	0	0	0
Net change	0	0	0	0
Foreign currency translation adjustments
Foreign currency translation adjustments	(4)	2	(2)	6
Other comprehensive income (loss)	(9)	2	(5)	6
Comprehensive income	$ 375	$ 161	$ 829	$ 346

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017
OPERATING ACTIVITIES
Net income	$ 834	$ 340
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	272	318
Share-based compensation	45	59
Deferred income taxes	1	204
Other non-cash operating activities, net	(44)	3
Changes in operating assets and liabilities:
Accounts receivable, net	135	145
Inventories	(47)	(32)
Accounts payable	(240)	59
Accrued employee compensation	(89)	(54)
Accrued expenses, income taxes and warranty	(16)	3
Other assets and liabilities	24	42
Net cash provided by operating activities	875	1,087
INVESTING ACTIVITIES
Acquisition of property, equipment and leasehold improvements	(304)	(201)
Proceeds from settlement of foreign currency forward exchange contracts	66	0
Proceeds from sale of strategic investments	10	0
Proceeds from sale of properties previously classified as held for sale	6	0
Proceeds from sale of property and equipment	0	(2)
Purchases of strategic investments	(8)	0
Other investing activities, net	0	(11)
Net cash used in investing activities	(230)	(210)
FINANCING ACTIVITIES
Redemption and repurchase of debt	(499)	(152)
Dividends to shareholders	(361)	(366)
Repurchases of ordinary shares	(286)	(361)
Taxes paid related to net share settlement of equity awards	(30)	(21)
Proceeds from issuance of ordinary shares under employee stock plans	35	35
Net cash used in financing activities	(1,141)	(865)
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash	(1)	5
(Decrease) increase in cash, cash equivalents and restricted cash	(497)	17
Cash, cash equivalents and restricted cash at the beginning of the period	1,857	2,543
Cash, cash equivalents and restricted cash at the end of the period	$ 1,360	$ 2,560

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CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]
Beginning balance at Jun. 30, 2017				$ (17)
Increase (Decrease) in Stockholders' Equity
Net income	$ 340
Ending balance at Dec. 29, 2017				(11)
Beginning balance (in shares) at Jun. 29, 2018		287
Beginning balance at Jun. 29, 2018	1,665	$ 0	$ 6,377	(16)	$ (4,696)
Increase (Decrease) in Stockholders' Equity
Cumulative effect of adoption of new revenue standard (Note 1)	(34)				34
Net income	834				834
Other comprehensive loss	(5)			(5)
Issuance of ordinary shares under employee stock plans (in shares)		3
Issuance of ordinary shares under employee stock plans	$ 35		35
Repurchases of ordinary shares (in shares)	(6)	(6)
Repurchases of ordinary shares	$ (286)				(286)
Tax withholding related to vesting of restricted stock units (in shares)	(1)	(1)
Tax withholding related to vesting of restricted stock units	$ (30)				(30)
Dividends to shareholders	(358)				(358)
Share-based compensation	45		45
Ending balance (in shares) at Dec. 28, 2018		283
Ending balance at Dec. 28, 2018	$ 1,934	$ 0	$ 6,457	$ (21)	$ (4,502)

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Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Dec. 28, 2018

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation and Summary of Significant Accounting Policies

Organization

Seagate Technology plc (the “Company”) is a leading provider of data storage technology and solutions. Its principal products are hard disk drives, commonly referred to as disk drives, hard drives or HDDs. In addition to HDDs, the Company produces a broad range of data storage products including solid state drives (“SSDs”) and storage subsystems.

Hard disk drives are devices that store digitally encoded data on rapidly rotating disks with magnetic surfaces. Disk drives continue to be the primary medium of mass data storage due to their performance attributes, high quality and cost effectiveness. Complementing existing data center storage architecture, solid-state storage devices use integrated circuit assemblies as memory to store data, and most SSDs use NAND flash memory.

The Company’s HDD products are designed for mission critical and nearline applications in enterprise servers and storage systems; edge compute applications, where its products are designed primarily for desktop and mobile computing; and edge non-compute applications, where its products are designed for a wide variety of end user devices such as portable external storage systems, surveillance systems, digital video recorders (“DVRs”), network-attached storage (“NAS”), and gaming consoles. The Company's SSD products mainly include serial attached SCSI ("SAS") and Non-Volatile Memory Express ("NVMe") SSDs.

The Company’s enterprise data solutions (formerly referred to as the "cloud systems and solutions") portfolio includes modular original equipment manufacturers (“OEM”) storage systems and scale-out storage servers.

Basis of Presentation and Consolidation

The Company's unaudited condensed consolidated financial statements include the accounts of the Company and all its wholly-owned and majority-owned subsidiaries, after elimination of intercompany transactions and balances.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its condensed consolidated financial statements. The condensed consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the condensed consolidated financial position, results of operations, comprehensive income, cash flows and shareholders’ equity for the periods presented. Such adjustments are of a normal and recurring nature.

The Company’s consolidated financial statements for the fiscal year ended June 29, 2018, are included in its Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission (“SEC”) on August 3, 2018. The Company believes that the disclosures included in the unaudited condensed consolidated financial statements, when read in conjunction with its consolidated financial statements as of June 29, 2018, and the notes thereto, are adequate to make the information presented not misleading.

The results of operations for the three and six months endedDecember 28, 2018 are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the Company’s fiscal year ending June 28, 2019. The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Both the three and six months endedDecember 28, 2018 and the three and six months endedDecember 29, 2017 consisted of 13 weeks and 26 weeks, respectively. Fiscal year 2019, which ends on June 28, 2019, and fiscal year 2018, which ended on June 29, 2018, are both comprised of 52 weeks. The fiscal quarters ended December 28, 2018, September 28, 2018, and December 29, 2017, are also referred to herein as the “December 2018 quarter”, the “September 2018 quarter” and the “December 2017 quarter”, respectively.

Summary of Significant Accounting Policies

Except for the change in the Company's revenue recognition policy described below, there have been no material changes to the Company’s significant accounting policies disclosed in Note 1 - Basis of Presentation and Summary of Significant Accounting Policies of "Financial Statements and Supplementary Data" contained in Part II, Item 8 of the Company's Annual Report on Form 10-K for the fiscal year ended June 29, 2018, as filed with the SEC on August 3, 2018.

Revenue Recognition

Effective June 30, 2018, the Company adopted a new revenue recognition policy in accordance with Accounting Standard Codification ("ASC") 606, Revenue from Contracts with Customers, using the modified retrospective transition approach as discussed in the section titled Recently Adopted Accounting Pronouncements in this Note 1. Prior to fiscal year 2019, the revenue recognition policy was based on ASC 605, Revenue Recognition. Under ASC 606, the Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, the Company satisfies a performance obligation.

Revenue from sales of products is generally recognized upon transfer of control to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products, net of sales taxes. This typically occurs upon shipment from the Company. When applicable, the Company includes shipping charges billed to customers in Revenue and includes the related shipping costs in Cost of revenue on the Company's Condensed Consolidated Statements of Operations.

The Company records estimated variable consideration at the time of revenue recognition as a reduction to net revenue. Variable consideration generally consists of sales incentive programs, such as price protection and volume incentives aimed at increasing customer demand. For OEM sales, rebates are typically established by estimating the most likely amount of consideration expected to be received based on an OEM customer’s volume of purchases from Seagate or other agreed upon rebate programs. For the distribution and retailing channel, these programs typically involve estimating the most likely amount of rebates related to a customer’s level of sales, order size, advertising or point of sale activity as well as the expected value of price protection adjustments based on historical analysis and forecasted pricing environment. Marketing development program costs are accrued and recorded as a reduction to revenue at the same time that the related revenue is recognized.

Practical Expedient and Exemptions

The Company elected a practical expedient to expense sales commissions when the commissions are incurred because the amortization period would have been one year or less. These costs are recorded as Marketing and administrative on the Company's Condensed Consolidated Statements of Operations.

Recently Issued Accounting Pronouncements

In February 2016 and July 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-02 (ASC Topic 842), Leases ASU2018-10, Codification Improvements to Topic 842, and Leases, ASU 2018-11, Leases (ASC Topic 842), Target Improvements, respectively. These ASUs amend a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The Company plans to adopt this guidance in the first quarter of fiscal year 2020. The Company is in the process of assessing the impact of these ASUs on its condensed consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 (ASC Topic 326), Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU amends the requirement on the measurement and recognition of expected credit losses for financial assets held. The Company is required to adopt this guidance in the first quarter of fiscal year 2021. Early adoption is permitted in the first quarter of fiscal year 2020. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02 (ASC Topic 220), Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU was issued following the enactment of the U.S. Tax Cuts and Jobs Act of2017 (the "Tax Act") and permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The Company is required to adopt this guidance in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15 (ASC Subtopic 350-40), Intangibles - Goodwill and Other - Internal-Use Software - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU aligns the accounting for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software. The Company is required to adopt the guidance in the first quarter of fiscal year 2021. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements.

Recently Adopted Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09 (ASC Topic 606), Revenue from Contracts with Customers, and FASB also issued certain interpretive clarifications on this new guidance which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the revenue recognition guidance under ASC 605. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This ASU became effective and was adopted by the Company in the September 2018 quarter retrospectively with a cumulative adjustment to accumulated deficit at the date of adoption ("modified retrospective transition approach"). The Company has completed the adoption and implemented policies, processes and controls to support the new standard’s measurement and disclosure requirements.

The Company applied the ASC 606 using a modified retrospective transition approach to all contracts that were not completed as of June 29, 2018. Results for reporting periods beginning June 30, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the historical accounting standard. As a result of the adoption, the Company identified a change in revenue recognition timing on its product sales made to certain retail customers and started to recognize revenue when the Company transfers control to the applicable customers rather than deferring recognition until those customers sell the products. In addition, the Company established accruals for the variable consideration related to customer incentives on these arrangements. On the date of initial adoption, the Company removed the related deferred income on the product sales made to these customers and recorded estimates of the accrual for variable consideration through a cumulative adjustment to accumulated deficit. The cumulative effect of the change to the Company's Condensed Consolidated Balance Sheet from the adoption of ASC 606 was as follows:

(Dollars in millions)	As of June 29, 2018			Effect of adoption of ASC 606			As of June 30, 2018
Accounts receivable, net	$	1,184		$	9		$	1,193
Inventory	$	1,053		$	(9	)	$	1,044
Accrued expenses	$	598		$	(34	)	$	564
Accumulated deficit	$	(4,696	)	$	34		$	(4,662	)

The impact of applying the new accounting standard on the Company's condensed consolidated financial statements for the three and six months ended December 28, 2018 was not material.

In January 2016, the FASB issued ASU 2016-01 (ASC Subtopic 825-10), Financial Instruments—Overall Recognition and Measurement of Financial Assets and Financial Liabilities, as amended by ASU 2018-03, Financial Instruments—Overall: Technical Correction and Improvements, issued in February 2018. The amendments in these ASUs require entities to measure all equity investments at fair value with changes recognized through net income. Additionally, the amendments eliminate certain disclosure requirements related to financial instruments measured at amortized cost and add disclosures related to the measurement categories of financial assets and financial liabilities. These ASUs became effective and were adopted by the Company in the September 2018 quarter. For equity investments without readily determinable fair value, the Company elected the measurement alternative for measurement of equity investments, defined as cost, less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer until the equity investments' fair value becomes readily determinable. The adoption of this guidance had no impact on the Company's condensed consolidated financial statements and disclosures.

In January 2017, the FASB issued ASU 2017-01 (ASC Topic 805), Business Combination: Clarifying the Definition of a Business. The amendments in this ASU change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The Company adopted the guidance in the September 2018 quarter. The adoption of this guidance had no impact on the Company's condensed consolidated financial statements and disclosures.

In May 2017, the FASB issued ASU 2017-09 (ASC Topic 718), Stock Compensation: Scope of Modification Accounting. The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company adopted the guidance in the September 2018 quarter. The adoption of this guidance had no impact on its condensed consolidated financial statements and disclosures.

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Balance Sheet Information

6 Months Ended

Dec. 28, 2018

Disclosure Text Block Supplement [Abstract]

Debt Securities, Held-to-maturity [Table Text Block]

As of December 28, 2018 and June 29, 2018, the Company had approximately $1.3 billion investment in non-convertible preferred stock of Toshiba Memory Corporation ("TMC", formerly known as "K.K. Pangea"). The investment, with a contractual maturity of six years starting from May 31, 2018, is accounted for as a held-to-maturity debt security, carried at cost and adjusted for amortization of transaction costs into interest income. Additionally, the debt security has a contractual payment-in-kind ("PIK") income which will be paid in cash upon redemption of the investment. PIK income computed at the contractual rate is accrued into Interest income in the Company's Condensed Consolidated Statements of Operations and added to the carrying value of the Investment in debt security on its Condensed Consolidated Balance Sheets. For the three and six months endedDecember 28, 2018, the PIK income earned was $15 million and $31 million, respectively. There wasno other-than-temporary impairment identified for the three and six months endedDecember 28, 2018. Please refer to Note 8 - Fair Value for more details.

Balance Sheet Information

Balance Sheet Information

Available-for-sale Debt Securities

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of December 28, 2018: 

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale debt securities:
Money market funds	$	454	$	—	$	454
Time deposits and certificates of deposit	426		—		426
Total	$	880	$	—	$	880
Included in Cash and cash equivalents					$	877
Included in Other current assets					3
Total					$	880

As of December 28, 2018, the Company’s Other current assets included $3 million in restricted cash and investments held as collateral at banks for various performance obligations.

As of December 28, 2018, the Company had no material available-for-sale debt securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale debt securities were other-than-temporarily impaired as of December 28, 2018.

The fair value and amortized cost of the Company’s debt securities investments classified as available-for-sale as of December 28, 2018, by remaining contractual maturity were as follows:

(Dollars in millions)	Amortized Cost		Fair Value
Due in less than 1 year	$	880	$	880
Due in 1 to 5 years	—		—
Due in 6 to 10 years	—		—
Thereafter	—		—
Total	$	880	$	880

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of June 29, 2018: 

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale securities:
Money market funds	$	621	$	—	$	621
Time deposits and certificates of deposit	395		—		395
Total	$	1,016	$	—	$	1,016
Included in Cash and cash equivalents					$	1,012
Included in Other current assets					4
Total					$	1,016

As of June 29, 2018, the Company’s Other current assets included $4 million in restricted cash and investments held as collateral at banks for various performance obligations.

As of June 29, 2018, the Company had no material available-for-sale securities that had been in a continuous unrealized loss position for a period greater than 12 months. The Company determined no available-for-sale securities were other-than-temporarily impaired as of June 29, 2018.

Cash, Cash Equivalents and Restricted Cash

The following table provides a summary of cash, cash equivalents and restricted cash reported within the Company's Condensed Consolidated Balance Sheets that reconciles to the corresponding amount in its Condensed Consolidated Statements of Cash Flows:

(Dollars in millions)	December 28, 2018		June 29, 2018		December 29, 2017		June 30, 2017
Cash and cash equivalents	$	1,357	$	1,853	$	2,556	$	2,539
Restricted cash included in Other current assets	3		4		4		4
Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows	$	1,360	$	1,857	$	2,560	$	2,543

Inventories

The following table provides details of the inventory balance sheet item: 

(Dollars in millions)	December 28, 2018		June 29, 2018
Raw materials and components	$	337	$	329
Work-in-process	281		347
Finished goods	479		377
Total inventories	$	1,097	$	1,053

Property, Equipment and Leasehold Improvements, net

The components of property, equipment and leasehold improvements, net, were as follows:

(Dollars in millions)	December 28, 2018			June 29, 2018
Property, equipment and leasehold improvements	$	9,689		$	9,525
Accumulated depreciation and amortization	(7,866		)	(7,733		)
Property, equipment and leasehold improvements, net	$	1,823		$	1,792

Investment in Debt Security

As of December 28, 2018 and June 29, 2018, the Company had approximately $1.3 billion investment in non-convertible preferred stock of Toshiba Memory Corporation ("TMC", formerly known as "K.K. Pangea"). The investment, with a contractual maturity of six years starting from May 31, 2018, is accounted for as a held-to-maturity debt security, carried at cost and adjusted for amortization of transaction costs into interest income. Additionally, the debt security has a contractual payment-in-kind ("PIK") income which will be paid in cash upon redemption of the investment. PIK income computed at the contractual rate is accrued into Interest income in the Company's Condensed Consolidated Statements of Operations and added to the carrying value of the Investment in debt security on its Condensed Consolidated Balance Sheets. For the three and six months endedDecember 28, 2018, the PIK income earned was $15 million and $31 million, respectively. There wasno other-than-temporary impairment identified for the three and six months endedDecember 28, 2018. Please refer to Note 8 - Fair Value for more details.

Accrued Expenses

The following table provides details of the accrued expenses balance sheet item: 

(Dollars in millions)	December 28, 2018		June 29, 2018
Dividends payable	$	178	$	181
Other accrued expenses	411		417
Total accrued expenses	$	589	$	598

Accumulated Other Comprehensive Income (Loss) (“AOCI”)

The components of AOCI, net of tax, were as follows:

(Dollars in millions)	Unrealized Gains/(Losses) on Cash Flow Hedges			Unrealized Gains/(Losses) on Available-for-Sale Debt Securities		Unrealized Gains/(Losses) on Post-Retirement Plans			Foreign Currency Translation Adjustments			Total
Balance at June 29, 2018	$	—		$	—	$	(4	)	$	(12	)	$	(16	)
Other comprehensive income (loss) before reclassifications	(1		)	—		—			(2		)	(3		)
Amounts reclassified from AOCI	(2		)	—		—			—			(2		)
Other comprehensive income (loss)	(3		)	—		—			(2		)	(5		)
Balance at December 28, 2018	$	(3	)	$	—	$	(4	)	$	(14	)	$	(21	)
Balance at June 30, 2017	$	—		$	—	$	(5	)	$	(12	)	$	(17	)
Other comprehensive income (loss) before reclassifications	—			—		—			6			6
Amounts reclassified from AOCI	—			—		—			—			—
Other comprehensive income (loss)	—			—		—			6			6
Balance at December 29, 2017	$	—		$	—	$	(5	)	$	(6	)	$	(11	)

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Debt

6 Months Ended

Dec. 28, 2018

Debt Disclosure [Abstract]

Debt

Debt

Short-Term Borrowings

The credit agreement entered into by the Company and its subsidiary Seagate HDD Cayman on January 18, 2011 and subsequently amended (the "Revolving Credit Facility") provides the Company with a $700 million senior secured revolving credit facility. The term of the Revolving Credit Facility is through January 15, 2020. The loans made under the Revolving Credit Facility will bear interest at a rate of LIBOR plus a variable margin that will be determined based on the corporate credit rating of the Company. The Company and certain of its material subsidiaries fully and unconditionally guarantee the Revolving Credit Facility. The Revolving Credit Facility is available for cash borrowings, subject to compliance with certain covenants and other customary conditions to borrowing, and for the issuance of letters of credit up to a sub-limit of $75 million.

The Revolving Credit Facility, as amended, includes three financial covenants: (1) minimum cash, cash equivalents and marketable securities; (2) a fixed charge coverage ratio; and (3) a net leverage ratio.The Company was in compliance with the modified covenants as of December 28, 2018 and expects to be in compliance for the next 12 months.

As of December 28, 2018, no borrowings had been drawn or letters of credit utilized under the Revolving Credit Facility.

Long-Term Debt

$800 million Aggregate Principal Amount of 3.75% Senior Notes due November 2018 (the “2018 Notes”).The interest on the 2018 Notes was payable semi-annually on May 15 and November 15 of each year. The issuer under the 2018 Notes was Seagate HDD Cayman, and the obligations under the 2018 Notes were fully and unconditionally guaranteed, on a senior unsecured basis, by the Company. During the three and six months ended December 29, 2017, the Company repurchased $128 million and $150 million aggregate principal amount of the 2018 Notes, respectively, for cash at a premium to their principal amount, plus accrued and unpaid interest. The Company recorded a loss of approximately $2 million on repurchases during the three and six months ended December 29, 2017 which is included in Other, net on the Company's Condensed Consolidated Statements of Operations. On November 15, 2018, the 2018 Notes matured and the Company repaid the entire outstanding principal amount of$499 million, plus accrued and unpaid interest.

$750 million Aggregate Principal Amount of 4.25% Senior Notes due March 2022 (the “2022 Notes”). The interest on the 2022 Notes is payable semi-annually on March 1 and September 1 of each year. The issuer under the 2022 Notes is Seagate HDD Cayman, and the obligations under the 2022 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$1 billion Aggregate Principal Amount of 4.75% Senior Notes due June 2023 (the “2023 Notes”). The interest on the 2023 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2023 Notes is Seagate HDD Cayman, and the obligations under the 2023 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$500 million Aggregate Principal Amount of 4.875% Senior Notes due March 2024 (the “2024 Notes”).The interest on the 2024 Notes is payable semi-annually on March 1 and September 1 of each year. The issuer under the 2024 Notes is Seagate HDD Cayman, and the obligations under the 2024 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$1 billion Aggregate Principal Amount of 4.75% Senior Notes due January 2025 (the “2025 Notes”). The interest on the 2025 Notes is payable semi-annually on January 1 and July 1 of each year. The issuer under the 2025 Notes is Seagate HDD Cayman, and the obligations under the 2025 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$700 million Aggregate Principal Amount of 4.875% Senior Notes due June 2027 (the “2027 Notes”). The interest on the Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2027 Notes is Seagate HDD Cayman, and the obligations under the 2027 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

$500 million Aggregate Principal Amount of 5.75% Senior Notes due December 2034 (the “2034 Notes”). The interest on the 2034 Notes is payable semi-annually on June 1 and December 1 of each year. The issuer under the 2034 Notes is Seagate HDD Cayman, and the obligations under the 2034 Notes are fully and unconditionally guaranteed, on a senior unsecured basis, by the Company.

At December 28, 2018, future principal payments on long-term debt were as follows (in millions):

Fiscal Year	Amount
Remainder of 2019	$	—
2020	—
2021	—
2022	750
2023	951
Thereafter	2,662
Total	$	4,363

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Income Taxes

6 Months Ended

Dec. 28, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company recorded income tax provisions of$14 millionand $32 millionin the three and six months endedDecember 28, 2018, respectively. The income tax provision for the three and six months endedDecember 28, 2018 included approximately$5 millionand $4 million of net discrete tax benefits, respectively, primarily associated with the recognition of previously unrecognized tax benefits related to the expiration of certain statutes of limitation.

The Company's income tax provision recorded for the three and six months endedDecember 28, 2018 differed from the provision for income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S.earnings generated in jurisdictions that are subject to tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a decrease in valuation allowance for certain deferred tax assets.

During the six months endedDecember 28, 2018, the Company’s unrecognized tax benefits excluding interest and penalties decreased by approximately $20 million to $40 million. The unrecognized tax benefits that, if recognized, would impact the effective tax rate were $40 million at December 28, 2018, subject to certain future valuation allowance reversals. During the twelve months beginning December 29, 2018, the Company expects that its unrecognized tax benefits could be reduced by approximately $7 million, primarilyas a result of the expiration of certain statutes of limitation.

TheCompany recorded income tax provisions of$212 millionand$219 millionin the three and six months endedDecember 29, 2017, respectively. The income tax provision for the three and six months ended December 29, 2017 included approximately $197 million of net discrete tax expense, primarily associated with the revaluation of U.S. deferred tax assets as a result of the enactment of the Tax Act on December 22, 2017, partially offset by the recognition of previously unrecognized tax benefits associated with the expiration of certain statutes of limitation.

TheCompany’s income tax provision recorded for the three and six months endedDecember 29, 2017 differed from the provision for income taxes that would be derived by applying the Irish statutory rate of 25% to income before income taxes, primarily due to the net effect of (i) tax benefits related to non-U.S. earnings generated in jurisdictions that are subject to tax incentive programs and are considered indefinitely reinvested outside of Ireland and (ii) a reduction in the net U.S. deferred tax assets associated with revaluation to a lower U.S. tax rate.

On December 22, 2017, the Tax Act was enacted into law in the United States. The Tax Act significantly revises U.S. corporate income tax law by, among other things, lowering U.S. corporate income tax rates from 35% to 21%, implementing a territorial tax system, and imposing a one-time transition tax on deemed repatriated earnings of non-U.S. subsidiaries.

The U.S. tax law changes, including limitations on various business deductions such as executive compensation under Internal Revenue Code §162(m), will not impact the Company’s tax expense in the short-term due to its large net operating loss and tax credit carryovers and associated valuation allowance. The Tax Act’s new international rules, including Global Intangible Low-Taxed Income (“GILTI”), Foreign Derived Intangible Income (“FDII”), and Base Erosion Anti-Avoidance Tax (“BEAT”) are effective beginning in fiscal year 2019. For fiscal year 2019, the Company has included these effects of the Tax Act in itsfiscal year 2019 financial statements and has concluded the impact will not be material.

As of the fiscal quarter ended September 28, 2018, pursuant to SEC Staff Accounting Bulletin (“SAB”) 118 (regarding the application of ASC 740, Income Taxes ("ASC 740") associated with the enactment of the Tax Act), the Company had considered SAB 118 and believed its accounting under ASC 740 for the provisions of the Tax Act was complete.

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Goodwill and Other Intangible Assets

6 Months Ended

Dec. 28, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying amount of goodwill for the six months endedDecember 28, 2018,were as follows:

(Dollars in millions)	Amount
Balance at June 29, 2018	$	1,237
Goodwill acquired	—
Goodwill disposed	—
Foreign currency translation effect	—
Balance at December 28, 2018	$	1,237

Other Intangible Assets

Other intangible assets consist primarily of existing technology, customer relationships and trade names acquired in business combinations. Intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets. Amortization is charged to Operating expenses in the Company's Condensed Consolidated Statements of Operations.

The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of December 28, 2018, was set forth in the following table:

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	250	$	(166	)	$	84	2.1 years
Customer relationships	89		(49		)	40		3.6 years
Trade name	17		(15		)	2		0.9 years
Other intangible assets	42		(19		)	23		2.9 years
Total amortizable other intangible assets	$	398	$	(249	)	$	149	2.6 years

The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 29, 2018, was set forth in the following table:

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	256	$	(145	)	$	111	2.5 years
Customer relationships	89		(42		)	47		4.0 years
Trade name	17		(13		)	4		1.3 years
Other intangible assets	45		(19		)	26		3.0 years
Total amortizable other intangible assets	$	407	$	(219	)	$	188	2.9 years

For the three and six months endedDecember 28, 2018, the amortization expense of other intangible assets was$20 millionand $39 million, respectively. For the three and six months ended December 29, 2017, the amortization expense of other intangible assets was $33 million and $69 million, respectively. As of December 28, 2018, expected amortization expense for other intangible assets for each of the next five fiscal years and thereafter was as follows:

(Dollars in millions)	Amount
Remainder of 2019	$	38
2020	57
2021	29
2022	20
2023	5
Thereafter	—
Total	$	149

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Restructuring and Exit Costs

6 Months Ended

Dec. 28, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Exit Costs

Restructuring and Exit Costs

For the three and six months endedDecember 28, 2018, the Company recorded restructuring charges of approximately $5 million and $28 million, respectively, comprised primarily of charges related to workforce reduction costs and facilities and other exit costs associated with the restructuring of its workforce. The Company's significant restructuring plans are described below. All restructuring charges are reported in Restructuring and other, net on the Company's Condensed Consolidated Statements of Operations.

December 2017 Plan - On December 8, 2017, the Company committed to a restructuring plan (the “December 2017 Plan”) to reduce its cost structure. The December 2017 Plan included reducing the Company's global headcount by approximately 500 employees. The December 2017 Plan was substantially completed by the end of fiscal year 2018.

July 2017 Plan - On July 25, 2017, the Company committed to a restructuring plan (the “July 2017 Plan”) to reduce its cost structure. The July 2017 Plan included reducing the Company’s global headcount by approximately 600 employees. The July 2017 Plan was substantially completed during fiscal year 2018.

March 2017 Plan - On March 9, 2017, the Company committed to a restructuring plan (the “March 2017 Plan”) in connection with the continued consolidation of its global footprint. The Company closed its design center in Korea, resulting in the reduction of the Company’s headcount by approximately 300 employees. The March 2017 Plan was substantially completed by the end of fiscal year 2017.

July 2016 Plan - On July 11, 2016, the Company committed to a restructuring plan (the “July 2016 Plan”) for continued consolidation of its global footprint across Asia, EMEA and the Americas. The July 2016 Plan included reducing worldwide headcount by approximately 6,500 employees. The July 2016 Plan was substantially completed during fiscal year 2018.

The following table summarizes the Company’s restructuring activities under all of the Company’s active restructuring plans for the six months ended December 28, 2018:

	December 2017 Plan						July 2017 Plan					March 2017 Plan				July 2016 Plan						Other Plans
(Dollars in millions)	Workforce Reduction Costs			Facilities and Other Exit Costs			Workforce Reduction Costs		Facilities and Other Exit Costs			Workforce Reduction Costs		Facilities and Other Exit Costs		Workforce Reduction Costs			Facilities and Other Exit Costs			Workforce Reduction Costs			Facilities and Other Exit Costs			Total
Accrual balances at June 29, 2018	$	5		$	4		$	—	$	1		$	1	$	—	$	2		$	—		$	11		$	18		$	42
Restructuring charges	—			2			—		—			—		—		—			3			21			3			29
Cash payments	(5		)	(3		)	—		—			—		—		(1		)	(3		)	(30		)	(4		)	(46		)
Adjustments	—			(1		)	—		(1		)	—		—		—			—			1			—			(1		)
Accrual balances at December 28, 2018	$	—		$	2		$	—	$	—		$	1	$	—	$	1		$	—		$	3		$	17		$	24
Total costs incurred to date as of December 28, 2018	$	26		$	7		$	37	$	3		$	31	$	3	$	82		$	37		$	262		$	62		$	550
Total expected charges to be incurred as of December 28, 2018	$	—		$	1		$	—	$	—		$	—	$	—	$	—		$	—		$	—		$	1		$	2

Additionally, during the December 2018 quarter, the Company recorded an impairment charge of $2 million on its held for sale land and building, which is included in Restructuring and other, net in the Company's Condensed Consolidated Statements of Operations. Please refer to Note 8 - Fair Value for more details.

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Derivative Financial Instruments

6 Months Ended

Dec. 29, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Company is exposed to foreign currency exchange rate, interest rate, and to a lesser extent, equity market risks relating to its ongoing business operations. From time to time, the Company enters into cash flow hedges in the form of foreign currency forward exchange contracts in order to manage the foreign currency exchange rate risk on forecasted expenses and investments denominated in foreign currencies. The Company’s accounting policies for these instruments are based on whether the instruments are classified as designated or non-designated hedging instruments. The Company records all derivatives in its Condensed Consolidated Balance Sheets at fair value. The changes in the fair value of highly effective designated cash flow hedges are recorded in Accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments or are not assessed to be highly effective are adjusted to fair value through earnings. The amount of net unrealized losson cash flow hedges was $3 million as of December 28, 2018 and the amount of net unrealized gain on cash flow hedges was less than $1 million as of June 29, 2018.

The Company de-designates its cash flow hedges when the forecasted hedged transactions affect earnings or it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings. The Company recognized a net gain of $1 million and $2 millionin Other expense, net related to the loss of hedge designation on discontinued cash flow hedges during the three andsix months endedDecember 28, 2018, respectively.The Company did not recognize any net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during the three and six months endedDecember 29, 2017.

Other derivatives not designated as hedging instruments consist of foreign currency forward exchange contracts that the Company uses to hedge the foreign currency exposure on the investment in debt security and forecasted expenditures denominated in currency other than the U.S. dollar. The Company recognizes gains and losses on these contracts, as well as the related costs in Other, net on its Condensed Consolidated Statement of Operations along with foreign currency gains and losses on investment in debt security, deferred gains of derivatives in Other current assets and deferred losses of derivatives in Accrued expenses on the Condensed Consolidated Balance Sheets.

The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of December 28, 2018 and June 29, 2018. All these foreign currency forward exchange contracts mature within 12 months:

	As of December 28, 2018
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
Thai Baht	$	19	$	19
Singapore Dollars	25		25
Chinese Renminbi	20		—
British Pound Sterling	44		12
Japanese Yen	55		1,299
	$	163	$	1,355

	As of June 29, 2018
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
Japanese Yen	$	66	$	1,310

The Company is subject to equity market risks due to changes in the fair value of the notional investments selected by its employees as part of its Non-qualified Deferred Compensation Plan—the Seagate Deferred Compensation Plan (the “SDCP”). In fiscal year 2014, the Company entered into a Total Return Swap (“TRS”) in order to manage the equity market risks associated with the SDCP liabilities. The Company pays a floating rate, based on LIBOR plus an interest rate spread, on the notional amount of the TRS. The TRS is designed to substantially offset changes in the SDCP liability due to changes in the value of the investment options made by employees. As of December 28, 2018, the notional investments underlying the TRS amounted to $103 million. The contract term of the TRS was through January 2020 and is settled on a monthly basis, therefore limiting counterparty performance risk. The Company did not designate the TRS as a hedge. Rather, the Company records all changes in the fair value of the TRS to earnings to offset the market value changes of the SDCP liabilities.

The following tables show the Company's derivative instruments measured at gross fair value as reflected in its Condensed Consolidated Balance Sheets as of December 28, 2018 and June 29, 2018:

	As of December 28, 2018
	Derivative Assets			Derivative Liabilities
(Dollars in millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	—	Accrued expenses	$	(3	)
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	—		Accrued expenses	(28		)
Total return swap	Other current assets	1		Accrued expenses	—
Total derivatives		$	1		$	(31	)

	As of June 29, 2018
	Derivative Assets			Derivative Liabilities
(Dollars in millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	—	Accrued expenses	$	—
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	10		Accrued expenses	—
Total return swap	Other current assets	—		Accrued expenses	—
Total derivatives		$	10		$	—

The following tables show the effect of the Company’s derivative instruments on its Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and six months endedDecember 28, 2018:    

(Dollars in millions) Derivatives Not Designated as Hedging Instruments	Location of Gain/ (Loss) Recognized in Income on Derivatives	Amount of Gain/ (Loss) Recognized in Income on Derivatives
		For the Three Months			For the Six Months
Foreign currency forward exchange contracts	Other, net	$	(13	)	$	28
Total return swap	Operating expenses	$	(15	)	$	(11	)

(Dollars in millions) Derivatives Designated as Hedging Instruments	Amount of Gain/(Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion)				Location of Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	For the Three Months			For the Six Months				For the Three Months		For the Six Months			For the Three Months		For the Six Months
Foreign currency forward exchange contracts	$	(4	)	$	(1	)	Other expense, net	$	1	$	2	Other expense, net	$	1	$	1

As of December 29, 2017, the Company had no outstanding foreign currency forward exchange contracts and the gross fair value of the TRS reflected in the Condensed Consolidated Balance Sheet was immaterial.

The following table shows the effect of the Company’s derivative instruments on its Condensed Consolidated Statement of Comprehensive Income and its Condensed Consolidated Statement of Operations for the three and six months endedDecember 29, 2017

:

(Dollars in millions) Derivatives Not Designated as Hedging Instruments	Location of Gain/ (Loss) Recognized in Income on Derivatives	Amount of Gain/ (Loss) Recognized in Income on Derivatives
		For the Three Months		For the Six Months
Foreign currency forward exchange contracts	Other, net	$	—	$	—
Total return swap	Operating expenses	$	4	$	7

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Fair Value

6 Months Ended

Dec. 28, 2018

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Measurement of Fair Value

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

A fair value hierarchy is based on whether the market participant assumptions used in determining fair value are obtained from independent sources (observable inputs) or reflects the Company’s own assumptions of market participant valuation (unobservable inputs). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are:

Level 1 — Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 — Quoted prices for identical assets and liabilities in markets that are inactive; quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; or

Level 3 — Prices or valuations that require inputs that are both unobservable and significant to the fair value measurement.

The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate the Company’s or the counterparty’s non-performance risk is considered in determining the fair values of liabilities and assets, respectively.

Items Measured at Fair Value on a Recurring Basis

The following tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item that are measured at fair value on a recurring basis, excluding accrued interest components, as of December 28, 2018:

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Money market funds	$	454	$	—		$	—	$	454
Time deposits and certificates of deposit	—		423			—		423
Total cash equivalents	454		423			—		877
Restricted cash and investments:
Time deposits and certificates of deposit	—		3			—		3
Derivative Assets	—		1			—		1
Total assets	$	454	$	427		$	—	$	881
Liabilities:
Derivative liabilities	$	—	$	(31	)	$	—	$	(31	)
Total liabilities	$	—	$	(31	)	$	—	$	(31	)

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Cash and cash equivalents	$	454	$	423		$	—	$	877
Other current assets	—		4			—		4
Total assets	$	454	$	427		$	—	$	881
Liabilities:
Accrued expenses	$	—	$	(31	)	$	—	$	(31	)
Total liabilities	$	—	$	(31	)	$	—	$	(31	)

The following tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item that are measured at fair value on a recurring basis, excluding accrued interest components, as of June 29, 2018:

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Money market funds	$	620	$	—	$	—	$	620
Time deposits and certificates of deposit	—		392		—		392
Total cash equivalents	620		392		—		1,012
Restricted cash and investments:
Money market funds	1		—		—		1
Time deposits and certificates of deposit	—		3		—		3
Derivative assets	—		10		—		10
Total assets	$	621	$	405	$	—	$	1,026

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Cash and cash equivalents	$	620	$	392	$	—	$	1,012
Other current assets	1		13		—		14
Total assets	$	621	$	405	$	—	$	1,026

The Company classifies items in Level 1 if the financial assets consist of securities for which quoted prices are available in an active market.

The Company classifies items in Level 2 if the financial asset or liability is valued using observable inputs. The Company uses observable inputs including quoted prices in active markets for similar assets or liabilities. Level 2 assets include: agency bonds, corporate bonds, commercial paper, municipal bonds, U.S. Treasuries, time deposits and certificates of deposit. These debt investments are priced using observable inputs and valuation models which vary by asset class. The Company uses a pricing service to assist in determining the fair value of all of its cash equivalents and short-term investments. For the cash equivalents and short-term investments in the Company’s portfolio, multiple pricing sources are generally available. The pricing service uses inputs from multiple industry standard data providers or other third party sources and various methodologies, such as weighting and models, to determine the appropriate price at the measurement date. The Company corroborates the prices obtained from the pricing service against other independent sources and, as ofDecember 28, 2018, has not found it necessary to make any adjustments to the prices obtained. The Company’s derivative financial instruments are also classified within Level 2. The Company’s derivative financial instruments consist of foreign currency forward exchange contracts and the TRS. The Company recognizes derivative financial instruments in its condensed consolidated financial statements at fair value. The Company determines the fair value of these instruments by considering the estimated amount it would pay or receive to terminate these agreements at the reporting date.

As of December 28, 2018 and June 29, 2018, the Company had no Level 3 assets or liabilities measured at fair value on a recurring basis.

Items Measured at Fair Value on a Non-Recurring Basis

From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives. These strategic investments primarily include cost basis investments representing those where the Company does have the ability to exercise significant influence but does not have control. These investments are included in Other assets, net in the Company's Condensed Consolidated Balance Sheets, and are periodically analyzed to determine whether or not there are indicators of impairment.

Prior to fiscal year 2019, the Company’s strategic investments in privately-held companies without readily determinable fair values were accounted for under the cost method and were recorded at historical cost at the time of investment, with adjustments to the balance only in the event of impairment. Effective June 30, 2018, the Company adopted ASU 2016-01, Financial Instruments, which changed the way the Company accounts for equity investments, excluding investments that qualify for the equity method of accounting. The Company's equity investments in privately-held companies without readily determinable fair values are now measured using the measurement alternative, defined by ASC 321, Investments - Equity Securities, as cost, less impairments, and adjusted up or down based on observable price changes in orderly transactions for identical or similar investments of the same issuer. Any adjustments resulting from impairments and/or observable price changes are recorded as Other, net in the Company's Condensed Consolidated Statements of Operations.

As of December 28, 2018 and June 29, 2018, the carrying value of the Company’s strategic investments were $111 million and $118 million, respectively. For the three and six months endedDecember 29, 2017, the Company did not have any equity investments accounted for under the cost method that were other-than-temporarily impaired and did not record any impairment charges. For the three and six months ended December 28, 2018, there were no upward or downward adjustments on equity investments as a result of adoption of the measurement alternative during the September 2018 quarter.

As of December 28, 2018 and June 29, 2018, the Company had $24 million and $26 million, respectively, of held for sale land and building (collectively, the "property") in Asia included in Other current assets on its Condensed Consolidated Balance Sheets. The respective property to be sold met the criteria to be classified as held for sale at the end of fiscal year 2017. During the September 2018 quarter, the Company accepted an offer to sell the property to a third party and recorded an impairment charge of approximately $2 million during the three and six months ended December 28, 2018. The impairment charge was recorded in Restructuring and other, net in the Company's Condensed Consolidated Statement of Operations. No impairment was identified for the three and six months endedDecember 29, 2017. The sale is expected to be completed by the end of fiscal year 2019, subject to government approval and customary closing conditions.

Other Fair Value Disclosures 

The Company’s investment in a debt security, classified as held-to-maturity, represents shares of non-convertible preferred stock of TMC. This debt security has a maturity date of six years starting from May 31, 2018 and is classified as Investment in debt security on the Company’s Condensed Consolidated Balance Sheets. The debt security is recorded at amortized cost and its fair value approximated the carrying value at June 29, 2018. As of December 28, 2018, the fair value of this investment was $1,272 million with an unrealized loss of $28 million on the carrying value of $1,300 million.There wasno other-than-temporary impairment identified for the three and six months ended December 28, 2018. The fair value was determined utilizing Level 2 inputs such as discount rates and yield terms of similar types of securities issued by comparable companies.

The Company’s debt is carried at amortized cost. The estimated fair value of the Company’s debt is derived using the closing price of the same debt instruments as of the date of valuation, which takes into account the yield curve, interest rates and other observable inputs. Accordingly, these fair value measurements are categorized as Level 2. The following table presents the fair value and amortized cost of the Company’s debt in order of maturity:

	December 28, 2018					June 29, 2018
(Dollars in millions)	Carrying Amount			Estimated Fair Value		Carrying Amount			Estimated Fair Value
3.75% Senior Notes due November 2018	$	—		$	—	$	499		$	501
4.25% Senior Notes due March 2022	749			720		749			743
4.75% Senior Notes due June 2023	951			897		951			942
4.875% Senior Notes due March 2024	497			460		497			489
4.75% Senior Notes due January 2025	975			881		975			936
4.875% Senior Notes due June 2027	695			590		695			650
5.75% Senior Notes due December 2034	489			385		489			441
	$	4,356		$	3,933	$	4,855		$	4,702
Less: debt issuance costs	(32		)	—		(36		)	—
Long-term debt, net of debt issuance costs	$	4,324		$	3,933	$	4,819		$	4,702
Less: current portion of long-term debt, net of debt issuance costs	—			—		(499		)	(501		)
Long-term debt, less current portion	$	4,324		$	3,933	$	4,320		$	4,201

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Equity

6 Months Ended

Dec. 28, 2018

Equity [Abstract]

Equity

Equity

Share Capital

The Company’s authorized share capital is $13,500 and consists of 1,250,000,000 ordinary shares, par value $0.00001, of which 283,130,419 shares were outstanding as of December 28, 2018, and 100,000,000 preferred shares, par value $0.00001, of which none were issued or outstanding as of December 28, 2018.

Ordinary shares—Holders of ordinary shares are entitled to receive dividends as and when declared by the Company’s board of directors (the “Board of Directors”). Upon any liquidation, dissolution, or winding up of the Company, after required payments are made to holders of preferred shares, any remaining assets of the Company will be distributed ratably to holders of the preferred and ordinary shares. Holders of shares are entitled to one vote per share on all matters upon which the ordinary shares are entitled to vote, including the election of directors.

Preferred shares—The Company may issue preferred shares in one or more series, up to the authorized amount, without shareholder approval. The Board of Directors is authorized to establish from time to time the number of shares to be included in each series, and to fix the rights, preferences and privileges of the shares of each wholly unissued series and any of its qualifications, limitations or restrictions. The Board of Directors can also increase or decrease the number of shares of a series, but not below the number of shares of that series then outstanding, without any further vote or action by the shareholders.

The Board of Directors may authorize the issuance of preferred shares with voting or conversion rights that could harm the voting power or other rights of the holders of the ordinary shares. The issuance of preferred shares, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change in control of the Company and might harm the market price of its ordinary shares and the voting and other rights of the holders of ordinary shares.

Repurchases of Equity Securities

All repurchases are effected as redemptions in accordance with the Company's Articles of Association.

On October 29, 2018, the Company’s Board of Directors authorized the repurchase of an additional $2.3 billion of its outstanding ordinary shares.

As of December 28, 2018, $2.9 billion remained available for repurchase under the existing repurchase authorization limit.

The following table sets forth information with respect to repurchases of the Company’s shares during the six months ended December 28, 2018:

(In millions)	Number of Shares Repurchased	Dollar Value of Shares Repurchased
Repurchases of ordinary shares	6	$	286
Tax withholding related to vesting of equity awards	1	30
Total	7	$	316

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Revenue

6 Months Ended

Dec. 28, 2018

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

The following table provides information about disaggregated revenue by sales channel and geographical region for theCompany’s single reportable segment:

	For the Three Months Ended				For the Six Months Ended
(Dollars in million)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Revenues by Channel
OEMs	$	1,865	$	1,996	$	4,003	$	3,830
Distributors	443		495		977		929
Retailers	407		423		726		787
Total	$	2,715	$	2,914	$	5,706	$	5,546
Revenues by Geography(1)
Americas	$	731	$	913	$	1,737	$	1,788
EMEA	598		567		1,115		1,039
Asia Pacific	1,386		1,434		2,854		2,719
Total	$	2,715	$	2,914	$	5,706	$	5,546

__________________________________________

⁽¹⁾ Revenue is attributed to countries based on bill from locations.

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Share-based Compensation

6 Months Ended

Dec. 28, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation

Share-based Compensation

The Company recorded approximately $27 million and $45 million of share-based compensation expense during the three and six months endedDecember 28, 2018, respectively. The Company recorded approximately $27 million and $59 million of share-based compensation expense during the three and six months ended December 29, 2017, respectively.

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Guarantees

6 Months Ended

Dec. 28, 2018

Guarantees [Abstract]

Guarantees

Guarantees

Indemnifications of Officers and Directors

On May 4, 2009, Seagate Technology, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Seagate-Cayman”), then the parent company, entered into a new form of indemnification agreement (the “Revised Indemnification Agreement”) with its officers and directors of Seagate-Cayman and its subsidiaries (each, an “Indemnitee”). The Revised Indemnification Agreement provides indemnification in addition to any of Indemnitee's indemnification rights under Seagate-Cayman's Articles of Association, applicable law or otherwise, and indemnifies an Indemnitee for certain expenses (including attorneys' fees), judgments, fines and settlement amounts actually and reasonably incurred by him or her in any action or proceeding, including any action by or in the right of Seagate-Cayman or any of its subsidiaries, arising out of his or her service as a director, officer, employee or agent of Seagate-Cayman or any of its subsidiaries or of any other entity to which he or she provides services at Seagate-Cayman's request. However, an Indemnitee shall not be indemnified under the Revised Indemnification Agreement for (i) any fraud or dishonesty in the performance of Indemnitee's duty to Seagate-Cayman or the applicable subsidiary of Seagate-Cayman or (ii) Indemnitee's conscious, intentional or willful failure to act honestly, lawfully and in good faith with a view to the best interests of Seagate-Cayman or the applicable subsidiary of Seagate-Cayman. In addition, the Revised Indemnification Agreement provides that Seagate-Cayman will advance expenses incurred by an Indemnitee in connection with enforcement of the Revised Indemnification Agreement or with the investigation, settlement or appeal of any action or proceeding against him or her as to which he or she could be indemnified.

On July 3, 2010, pursuant to a corporate reorganization, the common shareholders of Seagate-Cayman became ordinary shareholders of the Company and Seagate-Cayman became a wholly owned subsidiary of the Company, as described more fully in the Current Report on Form 8-K filed by the Company on July 6, 2010 (the “Redomestication”). On July 27, 2010, in connection with the Redomestication, the Company, as sole shareholder of Seagate-Cayman, approved a form of deed of indemnity (the “Deed of Indemnity”), which provides for the indemnification by Seagate-Cayman of any director, officer, employee or agent of the Company, Seagate-Cayman or any subsidiary of the Company (each, a “Deed Indemnitee”), in addition to any indemnification rights of a Deed Indemnitee under the Company’s Articles of Association, applicable law or otherwise, with a similar scope to the Revised Indemnification Agreement. Seagate-Cayman entered into Deeds of Indemnity with certain Deed Indemnitees effective as of July 3, 2010 and continues to enter into Deeds of Indemnity with additional Deed Indemnitees from time to time.

The nature of these indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay on behalf of its officers and directors. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the Company’s consolidated financial statements with respect to these indemnification obligations.

Intellectual Property Indemnification Obligations

The Company has entered into agreements with customers and suppliers that include limited intellectual property indemnification obligations that are customary in the industry. These guarantees generally require the Company to compensate the other party for certain damages and costs incurred as a result of third party intellectual property claims arising from these transactions. The nature of the intellectual property indemnification obligations prevents the Company from making a reasonable estimate of the maximum potential amount it could be required to pay to its customers and suppliers. Historically, the Company has not made any significant indemnification payments under such agreements and no amount has been accrued in the Company's condensed consolidated financial statements with respect to these indemnification obligations.

Product Warranty

The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally warrants its products for a period of 1 to 5 years. The Company uses estimated repair or replacement costs and uses statistical modeling to estimate product return rates in order to determine its warranty obligation. Changes in the Company’s product warranty liability during the three and six months endedDecember 28, 2018 and December 29, 2017 were as follows:

	For the Three Months Ended						For the Six Months Ended
(Dollars in millions)	December 28, 2018			December 29, 2017			December 28, 2018			December 29, 2017
Balance, beginning of period	$	232		$	230		$	237		$	233
Warranties issued	31			40			65			75
Repairs and replacements	(27		)	(27		)	(52		)	(54		)
Changes in liability for pre-existing warranties, including expirations	(14		)	(7		)	(28		)	(18		)
Balance, end of period	$	222		$	236		$	222		$	236

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Earnings Per Share

6 Months Ended

Dec. 28, 2018

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share is computed by dividing income available to shareholders by the weighted-average number of shares outstanding during the period and the number of additional shares that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options, unvested restricted stock units and performance-based share units and shares to be purchased under the Company's Employee Stock Purchase Plan ("ESPP"). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in fair market value of the Company’s share price can result in a greater dilutive effect from potentially dilutive securities. The following table sets forth the computation of basic and diluted net income per share attributable to the shareholders of the Company:

	For the Three Months Ended				For the Six Months Ended
(In millions, except per share data)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Numerator:
Net income	$	384	$	159	$	834	$	340
Number of shares used in per share calculations:
Total shares for purposes of calculating basic net income per share	285		288		286		289
Weighted-average effect of dilutive securities:
Employee equity award plans	2		3		4		2
Total shares for purpose of calculating diluted net income per share	287		291		290		291
Net income per share:
Basic	$	1.35	$	0.55	$	2.92	$	1.18
Diluted	$	1.34	$	0.55	$	2.88	$	1.17

The anti-dilutive shares related to employee equity award plans that were excluded from the computation of diluted net income per share were approximately 1 millionfor the three and six months endedDecember 28, 2018, and approximately 1 million and 2 million for the three and six months endedDecember 29, 2017, respectively.

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Legal, Environmental and Other Contingencies

6 Months Ended

Dec. 28, 2018

Commitments and Contingencies Disclosure [Abstract]

Legal, Environmental and Other Contingencies

Legal, Environmental and Other Contingencies

The Company assesses the probability of an unfavorable outcome of all its material litigation, claims, or assessments to determine whether a liability had been incurred and whether it is probable that one or more future events will occur confirming the fact of the loss. In the event that an unfavorable outcome is determined to be probable and the amount of the loss can be reasonably estimated, the Company establishes an accrual for the litigation, claim or assessment. In addition, in the event an unfavorable outcome is determined to be less than probable, but reasonably possible, the Company will disclose an estimate of the possible loss or range of such loss; however, when a reasonable estimate cannot be made, the Company will provide disclosure to that effect. Litigation is inherently uncertain and may result in adverse rulings or decisions. Additionally, the Company may enter into settlements or be subject to judgments that may, individually or in the aggregate, have a material adverse effect on its results of operations. Accordingly, actual results could differ materially.

Intellectual Property Litigation

Convolve, Inc. (“Convolve”) and Massachusetts Institute of Technology (“MIT”) v. Seagate Technology LLC, et al. On July 13, 2000, Convolve and MIT filed suit against Compaq Computer Corporation and Seagate Technology LLC in the U.S. District Court for the Southern District of New York, alleging infringement of U.S. Patent No. 4,916,635 (the “‘635 patent”) and U.S. Patent No. 5,638,267 (the “‘267 patent”), misappropriation of trade secrets, breach of contract, and other claims. On January 16, 2002, Convolve filed an amended complaint, alleging defendants were infringing U.S. Patent No. 6,314,473 (the “‘473 patent”). The district court ruled in 2010 that the ‘267 patent was out of the case.

On August 16, 2011, the district court granted in part and denied in part the Company’s motion for summary judgment. On July 1, 2013, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court’s summary judgment rulings that Seagate did not misappropriate any of the alleged trade secrets and that the asserted claims of the ‘635 patent are invalid; 2) reversed and vacated the district court’s summary judgment of non-infringement with respect to the ‘473 patent; and 3) remanded the case for further proceedings on the ‘473 patent. On July 11, 2014, the district court granted the Company’s further summary judgment motion regarding the ‘473 patent. On February 10, 2016, the U.S. Court of Appeals for the Federal Circuit: 1) affirmed the district court’s summary judgment of no direct infringement by Seagate because Seagate’s ATA/SCSI disk drives do not meet the “user interface” limitation of the asserted claims of the ‘473 patent; 2) affirmed the district court’s summary judgment of non-infringement by Compaq’s products as to claims 1, 3, and 5 of the ‘473 patent because Compaq’s F10 BIOS interface does not meet the “commands” limitation of those claims; 3) vacated the district court’s summary judgment of non-infringement by Compaq’s accused products as to claims 7-15 of the ‘473 patent; 4) reversed the district court’s summary judgment of non-infringement based on intervening rights; and 5) remanded the case to the district court for further proceedings on the ‘473 patent. In view of the rulings made by the district court and the Court of Appeals and the uncertainty regarding the amount of damages, if any, that could be awarded Convolve in this matter, the Company does not believe that it is currently possible to determine a reasonable estimate of the possible range of loss related to this matter.

Lambeth Magnetic Structures LLC v. Seagate Technology (US) Holdings, Inc., et al. On April 29, 2016, Lambeth Magnetic Structures LLC filed a complaint against Seagate Technology (US) Holdings, Inc. and Seagate Technology LLC in the U.S. District Court for the Western District of Pennsylvania, alleging infringement of U.S. Patent No. 7,128,988, “Magnetic Material Structures, Devices and Methods.” The Company believes the claims asserted in the complaint are without merit and intends to vigorously defend this case. The court issued its claim construction ruling on October 18, 2017. No trial date has been set. While the possible range of loss for this matter remains uncertain, the Company estimates the amount of loss to be immaterial to the financial statements.

Environmental Matters

The Company’s operations are subject to U.S. and foreign laws and regulations relating to the protection of the environment, including those governing discharges of pollutants into the air and water, the management and disposal of hazardous substances and wastes and the cleanup of contaminated sites. Some of the Company’s operations require environmental permits and controls to prevent and reduce air and water pollution, and these permits are subject to modification, renewal and revocation by issuing authorities.

The Company has established environmental management systems and continually updates its environmental policies and standard operating procedures for its operations worldwide. The Company believes that its operations are in material compliance with applicable environmental laws, regulations and permits. The Company budgets for operating and capital costs on an ongoing basis to comply with environmental laws. If additional or more stringent requirements are imposed on the Company in the future, it could incur additional operating costs and capital expenditures.

Some environmental laws, such as the Comprehensive Environmental Response Compensation and Liability Act of 1980 (as amended, the “Superfund” law) and its state equivalents, can impose liability for the cost of cleanup of contaminated sites upon any of the current or former site owners or operators or upon parties who sent waste to these sites, regardless of whether the owner or operator owned the site at the time of the release of hazardous substances or the lawfulness of the original disposal activity. The Company has been identified as a responsible or potentially responsible party at several sites. At each of these sites, the Company has an assigned portion of the financial liability based on the type and amount of hazardous substances disposed of by each party at the site and the number of financially viable parties. The Company has fulfilled its responsibilities at some of these sites and remains involved in only a few at this time.

While the Company’s ultimate costs in connection with these sites is difficult to predict with complete accuracy, based on its current estimates of cleanup costs and its expected allocation of these costs, the Company does not expect costs in connection with these sites to be material.

The Company may be subject to various state, federal and international laws and regulations governing the environment, including those restricting the presence of certain substances in electronic products. For example, the European Union (“EU”) enacted the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment, which prohibits the use of certain substances, including lead, in certain products, including disk drives and server storage products, put on the market after July 1, 2006. Similar legislation has been or may be enacted in other jurisdictions, including in the United States, Canada, Mexico, Taiwan, China, Japan and others. The European Union REACH Directive (Registration, Evaluation, Authorization, and Restriction of Chemicals, EC 1907/2006) also restricts substances of very high concern (“SVHCs”) in products. If the Company or its suppliers fails to comply with the substance restrictions, recycle requirements or other environmental requirements as they are enacted worldwide, it could have a materially adverse effect on the Company’s business.

Other Matters

The Company is involved in a number of other judicial, regulatory or administrative proceedings and investigations incidental to its business, and the Company may be involved in such proceedings and investigations arising in the normal course of its business in the future. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on its financial position or results of operations.

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Commitments

6 Months Ended

Dec. 28, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments

Commitments

Unconditional Long-term Purchase Obligations

As of December 28, 2018, the Company had unconditional long-term purchase obligations of approximately $177 million, primarily related to purchase minimum quarterly amounts of inventory components at fixed contractual prices. The Company expects the commitment to total $4 million, $50 million, $48 million, $47 million and $28 million for fiscal years 2021, 2024, 2025, 2026 and 2027, respectively with no remaining commitment thereafter.

Unconditional Long-termCapital Expenditures

As of December 28, 2018, the Company had $23 million of unconditional long-term commitment primarily related to purchases of equipment.

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Subsequent event

6 Months Ended

Dec. 28, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Dividend Declared

On February 4, 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.63 per share, which will be payable on April 3, 2019 to shareholders of record as of the close of business on March 20, 2019.

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Basis of Presentation and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 28, 2018

Accounting Policies [Abstract]

Basis of Presentation and Consolidation, Policy

The Company's unaudited condensed consolidated financial statements include the accounts of the Company and all its wholly-owned and majority-owned subsidiaries, after elimination of intercompany transactions and balances.

The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Company’s condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results the Company reports in its condensed consolidated financial statements. The condensed consolidated financial statements reflect, in the opinion of management, all material adjustments necessary to present fairly the condensed consolidated financial position, results of operations, comprehensive income, cash flows and shareholders’ equity for the periods presented. Such adjustments are of a normal and recurring nature.

The Company’s consolidated financial statements for the fiscal year ended June 29, 2018, are included in its Annual Report on Form 10-K, as filed with the United States Securities and Exchange Commission (“SEC”) on August 3, 2018. The Company believes that the disclosures included in the unaudited condensed consolidated financial statements, when read in conjunction with its consolidated financial statements as of June 29, 2018, and the notes thereto, are adequate to make the information presented not misleading.

Fiscal Period, Policy

The Company operates and reports financial results on a fiscal year of 52 or 53 weeks ending on the Friday closest to June 30. Both the three and six months endedDecember 28, 2018 and the three and six months endedDecember 29, 2017 consisted of 13 weeks and 26 weeks, respectively. Fiscal year 2019, which ends on June 28, 2019, and fiscal year 2018, which ended on June 29, 2018, are both comprised of 52 weeks. The fiscal quarters ended December 28, 2018, September 28, 2018, and December 29, 2017, are also referred to herein as the “December 2018 quarter”, the “September 2018 quarter” and the “December 2017 quarter”, respectively.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Effective June 30, 2018, the Company adopted a new revenue recognition policy in accordance with Accounting Standard Codification ("ASC") 606, Revenue from Contracts with Customers, using the modified retrospective transition approach as discussed in the section titled Recently Adopted Accounting Pronouncements in this Note 1. Prior to fiscal year 2019, the revenue recognition policy was based on ASC 605, Revenue Recognition. Under ASC 606, the Company determines revenue recognition through the following steps: (1) identification of the contract with a customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, the Company satisfies a performance obligation.

Revenue from sales of products is generally recognized upon transfer of control to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products, net of sales taxes. This typically occurs upon shipment from the Company. When applicable, the Company includes shipping charges billed to customers in Revenue and includes the related shipping costs in Cost of revenue on the Company's Condensed Consolidated Statements of Operations.

The Company records estimated variable consideration at the time of revenue recognition as a reduction to net revenue. Variable consideration generally consists of sales incentive programs, such as price protection and volume incentives aimed at increasing customer demand. For OEM sales, rebates are typically established by estimating the most likely amount of consideration expected to be received based on an OEM customer’s volume of purchases from Seagate or other agreed upon rebate programs. For the distribution and retailing channel, these programs typically involve estimating the most likely amount of rebates related to a customer’s level of sales, order size, advertising or point of sale activity as well as the expected value of price protection adjustments based on historical analysis and forecasted pricing environment. Marketing development program costs are accrued and recorded as a reduction to revenue at the same time that the related revenue is recognized.

Practical Expedient and Exemptions

The Company elected a practical expedient to expense sales commissions when the commissions are incurred because the amortization period would have been one year or less. These costs are recorded as Marketing and administrative on the Company's Condensed Consolidated Statements of Operations.

Recently Issued Accounting Pronouncements, Policy

Recently Issued Accounting Pronouncements

In February 2016 and July 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-02 (ASC Topic 842), Leases ASU2018-10, Codification Improvements to Topic 842, and Leases, ASU 2018-11, Leases (ASC Topic 842), Target Improvements, respectively. These ASUs amend a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The Company plans to adopt this guidance in the first quarter of fiscal year 2020. The Company is in the process of assessing the impact of these ASUs on its condensed consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13 (ASC Topic 326), Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments. This ASU amends the requirement on the measurement and recognition of expected credit losses for financial assets held. The Company is required to adopt this guidance in the first quarter of fiscal year 2021. Early adoption is permitted in the first quarter of fiscal year 2020. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements.

In February 2018, the FASB issued ASU 2018-02 (ASC Topic 220), Income Statement—Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU was issued following the enactment of the U.S. Tax Cuts and Jobs Act of2017 (the "Tax Act") and permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The Company is required to adopt this guidance in the first quarter of fiscal year 2020. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15 (ASC Subtopic 350-40), Intangibles - Goodwill and Other - Internal-Use Software - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU aligns the accounting for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software. The Company is required to adopt the guidance in the first quarter of fiscal year 2021. Early adoption is permitted. The Company is in the process of assessing the impact of this ASU on its condensed consolidated financial statements.

Recently Adopted Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09 (ASC Topic 606), Revenue from Contracts with Customers, and FASB also issued certain interpretive clarifications on this new guidance which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the revenue recognition guidance under ASC 605. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This ASU became effective and was adopted by the Company in the September 2018 quarter retrospectively with a cumulative adjustment to accumulated deficit at the date of adoption ("modified retrospective transition approach"). The Company has completed the adoption and implemented policies, processes and controls to support the new standard’s measurement and disclosure requirements.

The Company applied the ASC 606 using a modified retrospective transition approach to all contracts that were not completed as of June 29, 2018. Results for reporting periods beginning June 30, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the historical accounting standard. As a result of the adoption, the Company identified a change in revenue recognition timing on its product sales made to certain retail customers and started to recognize revenue when the Company transfers control to the applicable customers rather than deferring recognition until those customers sell the products. In addition, the Company established accruals for the variable consideration related to customer incentives on these arrangements. On the date of initial adoption, the Company removed the related deferred income on the product sales made to these customers and recorded estimates of the accrual for variable consideration through a cumulative adjustment to accumulated deficit. The cumulative effect of the change to the Company's Condensed Consolidated Balance Sheet from the adoption of ASC 606 was as follows:

(Dollars in millions)	As of June 29, 2018			Effect of adoption of ASC 606			As of June 30, 2018
Accounts receivable, net	$	1,184		$	9		$	1,193
Inventory	$	1,053		$	(9	)	$	1,044
Accrued expenses	$	598		$	(34	)	$	564
Accumulated deficit	$	(4,696	)	$	34		$	(4,662	)

The impact of applying the new accounting standard on the Company's condensed consolidated financial statements for the three and six months ended December 28, 2018 was not material.

In January 2016, the FASB issued ASU 2016-01 (ASC Subtopic 825-10), Financial Instruments—Overall Recognition and Measurement of Financial Assets and Financial Liabilities, as amended by ASU 2018-03, Financial Instruments—Overall: Technical Correction and Improvements, issued in February 2018. The amendments in these ASUs require entities to measure all equity investments at fair value with changes recognized through net income. Additionally, the amendments eliminate certain disclosure requirements related to financial instruments measured at amortized cost and add disclosures related to the measurement categories of financial assets and financial liabilities. These ASUs became effective and were adopted by the Company in the September 2018 quarter. For equity investments without readily determinable fair value, the Company elected the measurement alternative for measurement of equity investments, defined as cost, less impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment in the same issuer until the equity investments' fair value becomes readily determinable. The adoption of this guidance had no impact on the Company's condensed consolidated financial statements and disclosures.

In January 2017, the FASB issued ASU 2017-01 (ASC Topic 805), Business Combination: Clarifying the Definition of a Business. The amendments in this ASU change the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The Company adopted the guidance in the September 2018 quarter. The adoption of this guidance had no impact on the Company's condensed consolidated financial statements and disclosures.

In May 2017, the FASB issued ASU 2017-09 (ASC Topic 718), Stock Compensation: Scope of Modification Accounting. The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company adopted the guidance in the September 2018 quarter. The adoption of this guidance had no impact on its condensed consolidated financial statements and disclosures.

Derivatives, Policy

The Company is exposed to foreign currency exchange rate, interest rate, and to a lesser extent, equity market risks relating to its ongoing business operations. From time to time, the Company enters into cash flow hedges in the form of foreign currency forward exchange contracts in order to manage the foreign currency exchange rate risk on forecasted expenses and investments denominated in foreign currencies. The Company’s accounting policies for these instruments are based on whether the instruments are classified as designated or non-designated hedging instruments. The Company records all derivatives in its Condensed Consolidated Balance Sheets at fair value. The changes in the fair value of highly effective designated cash flow hedges are recorded in Accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that are not designated as hedging instruments or are not assessed to be highly effective are adjusted to fair value through earnings. The amount of net unrealized losson cash flow hedges was $3 million as of December 28, 2018 and the amount of net unrealized gain on cash flow hedges was less than $1 million as of June 29, 2018.

The Company de-designates its cash flow hedges when the forecasted hedged transactions affect earnings or it is probable the forecasted hedged transactions will not occur in the initially identified time period. At such time, the associated gains and losses deferred in Accumulated other comprehensive loss on the Company's Condensed Consolidated Balance Sheets are reclassified immediately into earnings and any subsequent changes in the fair value of such derivative instruments are immediately reflected in earnings.

Fair Value Measurement, Policy

The Company classifies items in Level 1 if the financial assets consist of securities for which quoted prices are available in an active market.

The Company classifies items in Level 2 if the financial asset or liability is valued using observable inputs. The Company uses observable inputs including quoted prices in active markets for similar assets or liabilities. Level 2 assets include: agency bonds, corporate bonds, commercial paper, municipal bonds, U.S. Treasuries, time deposits and certificates of deposit. These debt investments are priced using observable inputs and valuation models which vary by asset class. The Company uses a pricing service to assist in determining the fair value of all of its cash equivalents and short-term investments. For the cash equivalents and short-term investments in the Company’s portfolio, multiple pricing sources are generally available. The pricing service uses inputs from multiple industry standard data providers or other third party sources and various methodologies, such as weighting and models, to determine the appropriate price at the measurement date. The Company corroborates the prices obtained from the pricing service against other independent sources and, as ofDecember 28, 2018, has not found it necessary to make any adjustments to the prices obtained. The Company’s derivative financial instruments are also classified within Level 2. The Company’s derivative financial instruments consist of foreign currency forward exchange contracts and the TRS. The Company recognizes derivative financial instruments in its condensed consolidated financial statements at fair value. The Company determines the fair value of these instruments by considering the estimated amount it would pay or receive to terminate these agreements at the reporting date.

Measurement of Fair Value

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

Fair Value Hierarchy

A fair value hierarchy is based on whether the market participant assumptions used in determining fair value are obtained from independent sources (observable inputs) or reflects the Company’s own assumptions of market participant valuation (unobservable inputs). A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are:

Level 1 — Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 — Quoted prices for identical assets and liabilities in markets that are inactive; quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; or

Level 3 — Prices or valuations that require inputs that are both unobservable and significant to the fair value measurement.

The Company considers an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and views an inactive market as one in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate the Company’s or the counterparty’s non-performance risk is considered in determining the fair values of liabilities and assets, respectively.

Fair Value of Financial Instruments, Policy

Items Measured at Fair Value on a Non-Recurring Basis

From time to time, the Company enters into certain strategic investments for the promotion of business and strategic objectives. These strategic investments primarily include cost basis investments representing those where the Company does have the ability to exercise significant influence but does not have control. These investments are included in Other assets, net in the Company's Condensed Consolidated Balance Sheets, and are periodically analyzed to determine whether or not there are indicators of impairment.

Standard Product Warranty, Policy

Product Warranty

The Company estimates probable product warranty costs at the time revenue is recognized. The Company generally warrants its products for a period of 1 to 5 years. The Company uses estimated repair or replacement costs and uses statistical modeling to estimate product return rates in order to determine its warranty obligation.

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Basis of Presentation and Summary of Significant Accounting Policies - (Tables)

6 Months Ended

Dec. 28, 2018

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Recently Adopted Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09 (ASC Topic 606), Revenue from Contracts with Customers, and FASB also issued certain interpretive clarifications on this new guidance which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes the revenue recognition guidance under ASC 605. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. This ASU became effective and was adopted by the Company in the September 2018 quarter retrospectively with a cumulative adjustment to accumulated deficit at the date of adoption ("modified retrospective transition approach"). The Company has completed the adoption and implemented policies, processes and controls to support the new standard’s measurement and disclosure requirements.

The Company applied the ASC 606 using a modified retrospective transition approach to all contracts that were not completed as of June 29, 2018. Results for reporting periods beginning June 30, 2018 are presented under ASC 606, while prior period amounts were not adjusted and continue to be reported under the historical accounting standard. As a result of the adoption, the Company identified a change in revenue recognition timing on its product sales made to certain retail customers and started to recognize revenue when the Company transfers control to the applicable customers rather than deferring recognition until those customers sell the products. In addition, the Company established accruals for the variable consideration related to customer incentives on these arrangements. On the date of initial adoption, the Company removed the related deferred income on the product sales made to these customers and recorded estimates of the accrual for variable consideration through a cumulative adjustment to accumulated deficit. The cumulative effect of the change to the Company's Condensed Consolidated Balance Sheet from the adoption of ASC 606 was as follows:

(Dollars in millions)	As of June 29, 2018			Effect of adoption of ASC 606			As of June 30, 2018
Accounts receivable, net	$	1,184		$	9		$	1,193
Inventory	$	1,053		$	(9	)	$	1,044
Accrued expenses	$	598		$	(34	)	$	564
Accumulated deficit	$	(4,696	)	$	34		$	(4,662	)

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Balance Sheet Information (Tables)

6 Months Ended

Dec. 28, 2018

Disclosure Text Block Supplement [Abstract]

Summary of Debt Securities, Available-for-sale

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of December 28, 2018: 

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale debt securities:
Money market funds	$	454	$	—	$	454
Time deposits and certificates of deposit	426		—		426
Total	$	880	$	—	$	880
Included in Cash and cash equivalents					$	877
Included in Other current assets					3
Total					$	880

The following table summarizes, by major type, the fair value and amortized cost of the Company’s investments as of June 29, 2018: 

(Dollars in millions)	Amortized Cost		Unrealized Gain/(Loss)		Fair Value
Available-for-sale securities:
Money market funds	$	621	$	—	$	621
Time deposits and certificates of deposit	395		—		395
Total	$	1,016	$	—	$	1,016
Included in Cash and cash equivalents					$	1,012
Included in Other current assets					4
Total					$	1,016

Fair value and amortized cost of available-for-sale securities by contractual maturity

The fair value and amortized cost of the Company’s debt securities investments classified as available-for-sale as of December 28, 2018, by remaining contractual maturity were as follows:

(Dollars in millions)	Amortized Cost		Fair Value
Due in less than 1 year	$	880	$	880
Due in 1 to 5 years	—		—
Due in 6 to 10 years	—		—
Thereafter	—		—
Total	$	880	$	880

Cash, cash equivalents, and restricted cash

The following table provides a summary of cash, cash equivalents and restricted cash reported within the Company's Condensed Consolidated Balance Sheets that reconciles to the corresponding amount in its Condensed Consolidated Statements of Cash Flows:

(Dollars in millions)	December 28, 2018		June 29, 2018		December 29, 2017		June 30, 2017
Cash and cash equivalents	$	1,357	$	1,853	$	2,556	$	2,539
Restricted cash included in Other current assets	3		4		4		4
Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows	$	1,360	$	1,857	$	2,560	$	2,543

Inventories

The following table provides details of the inventory balance sheet item: 

(Dollars in millions)	December 28, 2018		June 29, 2018
Raw materials and components	$	337	$	329
Work-in-process	281		347
Finished goods	479		377
Total inventories	$	1,097	$	1,053

Property, Equipment and Leasehold Improvements, net

The components of property, equipment and leasehold improvements, net, were as follows:

(Dollars in millions)	December 28, 2018			June 29, 2018
Property, equipment and leasehold improvements	$	9,689		$	9,525
Accumulated depreciation and amortization	(7,866		)	(7,733		)
Property, equipment and leasehold improvements, net	$	1,823		$	1,792

Accrued expenses

The following table provides details of the accrued expenses balance sheet item: 

(Dollars in millions)	December 28, 2018		June 29, 2018
Dividends payable	$	178	$	181
Other accrued expenses	411		417
Total accrued expenses	$	589	$	598

Schedule of accumulated other comprehensive income (loss)

The components of AOCI, net of tax, were as follows:

(Dollars in millions)	Unrealized Gains/(Losses) on Cash Flow Hedges			Unrealized Gains/(Losses) on Available-for-Sale Debt Securities		Unrealized Gains/(Losses) on Post-Retirement Plans			Foreign Currency Translation Adjustments			Total
Balance at June 29, 2018	$	—		$	—	$	(4	)	$	(12	)	$	(16	)
Other comprehensive income (loss) before reclassifications	(1		)	—		—			(2		)	(3		)
Amounts reclassified from AOCI	(2		)	—		—			—			(2		)
Other comprehensive income (loss)	(3		)	—		—			(2		)	(5		)
Balance at December 28, 2018	$	(3	)	$	—	$	(4	)	$	(14	)	$	(21	)
Balance at June 30, 2017	$	—		$	—	$	(5	)	$	(12	)	$	(17	)
Other comprehensive income (loss) before reclassifications	—			—		—			6			6
Amounts reclassified from AOCI	—			—		—			—			—
Other comprehensive income (loss)	—			—		—			6			6
Balance at December 29, 2017	$	—		$	—	$	(5	)	$	(6	)	$	(11	)

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Debt (Tables)

6 Months Ended

Dec. 28, 2018

Debt Disclosure [Abstract]

Future principal payments on long-term debt

At December 28, 2018, future principal payments on long-term debt were as follows (in millions):

Fiscal Year	Amount
Remainder of 2019	$	—
2020	—
2021	—
2022	750
2023	951
Thereafter	2,662
Total	$	4,363

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Dec. 28, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill

The changes in the carrying amount of goodwill for the six months endedDecember 28, 2018,were as follows:

(Dollars in millions)	Amount
Balance at June 29, 2018	$	1,237
Goodwill acquired	—
Goodwill disposed	—
Foreign currency translation effect	—
Balance at December 28, 2018	$	1,237

Carrying value of intangible assets

The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of December 28, 2018, was set forth in the following table:

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	250	$	(166	)	$	84	2.1 years
Customer relationships	89		(49		)	40		3.6 years
Trade name	17		(15		)	2		0.9 years
Other intangible assets	42		(19		)	23		2.9 years
Total amortizable other intangible assets	$	398	$	(249	)	$	149	2.6 years

The carrying value of other intangible assets subject to amortization, excluding fully amortized intangible assets, as of June 29, 2018, was set forth in the following table:

(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted-Average Remaining Useful Life
Existing technology	$	256	$	(145	)	$	111	2.5 years
Customer relationships	89		(42		)	47		4.0 years
Trade name	17		(13		)	4		1.3 years
Other intangible assets	45		(19		)	26		3.0 years
Total amortizable other intangible assets	$	407	$	(219	)	$	188	2.9 years

Expected amortization expense for acquisition-related intangible assets

As of December 28, 2018, expected amortization expense for other intangible assets for each of the next five fiscal years and thereafter was as follows:

(Dollars in millions)	Amount
Remainder of 2019	$	38
2020	57
2021	29
2022	20
2023	5
Thereafter	—
Total	$	149

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Restructuring and Exit Costs Restructuring and Exit Costs (Tables)

6 Months Ended

Dec. 28, 2018

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

The following table summarizes the Company’s restructuring activities under all of the Company’s active restructuring plans for the six months ended December 28, 2018:

	December 2017 Plan						July 2017 Plan					March 2017 Plan				July 2016 Plan						Other Plans
(Dollars in millions)	Workforce Reduction Costs			Facilities and Other Exit Costs			Workforce Reduction Costs		Facilities and Other Exit Costs			Workforce Reduction Costs		Facilities and Other Exit Costs		Workforce Reduction Costs			Facilities and Other Exit Costs			Workforce Reduction Costs			Facilities and Other Exit Costs			Total
Accrual balances at June 29, 2018	$	5		$	4		$	—	$	1		$	1	$	—	$	2		$	—		$	11		$	18		$	42
Restructuring charges	—			2			—		—			—		—		—			3			21			3			29
Cash payments	(5		)	(3		)	—		—			—		—		(1		)	(3		)	(30		)	(4		)	(46		)
Adjustments	—			(1		)	—		(1		)	—		—		—			—			1			—			(1		)
Accrual balances at December 28, 2018	$	—		$	2		$	—	$	—		$	1	$	—	$	1		$	—		$	3		$	17		$	24
Total costs incurred to date as of December 28, 2018	$	26		$	7		$	37	$	3		$	31	$	3	$	82		$	37		$	262		$	62		$	550
Total expected charges to be incurred as of December 28, 2018	$	—		$	1		$	—	$	—		$	—	$	—	$	—		$	—		$	—		$	1		$	2

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Derivative Financial Instruments (Tables)

6 Months Ended

Dec. 28, 2018

Dec. 29, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional value of outstanding foreign currency forward exchange contracts

The following tables show the total notional value of the Company’s outstanding foreign currency forward exchange contracts as of December 28, 2018 and June 29, 2018. All these foreign currency forward exchange contracts mature within 12 months:

	As of December 28, 2018
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
Thai Baht	$	19	$	19
Singapore Dollars	25		25
Chinese Renminbi	20		—
British Pound Sterling	44		12
Japanese Yen	55		1,299
	$	163	$	1,355

	As of June 29, 2018
(Dollars in millions)	Contracts Designated as Hedges		Contracts Not Designated as Hedges
Japanese Yen	$	66	$	1,310

Schedule of gross fair value of derivative instruments

The following tables show the Company's derivative instruments measured at gross fair value as reflected in its Condensed Consolidated Balance Sheets as of December 28, 2018 and June 29, 2018:

	As of December 28, 2018
	Derivative Assets			Derivative Liabilities
(Dollars in millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	—	Accrued expenses	$	(3	)
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	—		Accrued expenses	(28		)
Total return swap	Other current assets	1		Accrued expenses	—
Total derivatives		$	1		$	(31	)

	As of June 29, 2018
	Derivative Assets			Derivative Liabilities
(Dollars in millions)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	$	—	Accrued expenses	$	—
Derivatives not designated as hedging instruments:
Foreign currency forward exchange contracts	Other current assets	10		Accrued expenses	—
Total return swap	Other current assets	—		Accrued expenses	—
Total derivatives		$	10		$	—

Schedule of the effect of derivative instruments on Other comprehensive income (loss) and the Consolidated Statement of Operations

The following tables show the effect of the Company’s derivative instruments on its Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Operations for the three and six months endedDecember 28, 2018:    

(Dollars in millions) Derivatives Not Designated as Hedging Instruments	Location of Gain/ (Loss) Recognized in Income on Derivatives	Amount of Gain/ (Loss) Recognized in Income on Derivatives
		For the Three Months			For the Six Months
Foreign currency forward exchange contracts	Other, net	$	(13	)	$	28
Total return swap	Operating expenses	$	(15	)	$	(11	)

(Dollars in millions) Derivatives Designated as Hedging Instruments	Amount of Gain/(Loss) Recognized in OCI on Derivatives (Effective Portion)						Location of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	Amount of Gain/(Loss) Reclassified from Accumulated OCI into Income (Effective Portion)				Location of Gain/(Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain/(Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)
	For the Three Months			For the Six Months				For the Three Months		For the Six Months			For the Three Months		For the Six Months
Foreign currency forward exchange contracts	$	(4	)	$	(1	)	Other expense, net	$	1	$	2	Other expense, net	$	1	$	1

The following table shows the effect of the Company’s derivative instruments on its Condensed Consolidated Statement of Comprehensive Income and its Condensed Consolidated Statement of Operations for the three and six months endedDecember 29, 2017

:

(Dollars in millions) Derivatives Not Designated as Hedging Instruments	Location of Gain/ (Loss) Recognized in Income on Derivatives	Amount of Gain/ (Loss) Recognized in Income on Derivatives
		For the Three Months		For the Six Months
Foreign currency forward exchange contracts	Other, net	$	—	$	—
Total return swap	Operating expenses	$	4	$	7

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Fair Value (Tables)

6 Months Ended

Dec. 28, 2018

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item that are measured at fair value on a recurring basis, excluding accrued interest components, as of December 28, 2018:

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Money market funds	$	454	$	—		$	—	$	454
Time deposits and certificates of deposit	—		423			—		423
Total cash equivalents	454		423			—		877
Restricted cash and investments:
Time deposits and certificates of deposit	—		3			—		3
Derivative Assets	—		1			—		1
Total assets	$	454	$	427		$	—	$	881
Liabilities:
Derivative liabilities	$	—	$	(31	)	$	—	$	(31	)
Total liabilities	$	—	$	(31	)	$	—	$	(31	)

The following tables present the Company’s assets and liabilities, by financial instrument type and balance sheet line item that are measured at fair value on a recurring basis, excluding accrued interest components, as of June 29, 2018:

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Money market funds	$	620	$	—	$	—	$	620
Time deposits and certificates of deposit	—		392		—		392
Total cash equivalents	620		392		—		1,012
Restricted cash and investments:
Money market funds	1		—		—		1
Time deposits and certificates of deposit	—		3		—		3
Derivative assets	—		10		—		10
Total assets	$	621	$	405	$	—	$	1,026

Schedule of Fair Value, by Balance Sheet Grouping, Measured on Recurring Basis

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Cash and cash equivalents	$	454	$	423		$	—	$	877
Other current assets	—		4			—		4
Total assets	$	454	$	427		$	—	$	881
Liabilities:
Accrued expenses	$	—	$	(31	)	$	—	$	(31	)
Total liabilities	$	—	$	(31	)	$	—	$	(31	)

	Fair Value Measurements at Reporting Date Using
(Dollars in millions)	Quoted Prices in Active Markets for Identical Instruments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Balance
Assets:
Cash and cash equivalents	$	620	$	392	$	—	$	1,012
Other current assets	1		13		—		14
Total assets	$	621	$	405	$	—	$	1,026

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the fair value and amortized cost of the Company’s debt in order of maturity:

	December 28, 2018					June 29, 2018
(Dollars in millions)	Carrying Amount			Estimated Fair Value		Carrying Amount			Estimated Fair Value
3.75% Senior Notes due November 2018	$	—		$	—	$	499		$	501
4.25% Senior Notes due March 2022	749			720		749			743
4.75% Senior Notes due June 2023	951			897		951			942
4.875% Senior Notes due March 2024	497			460		497			489
4.75% Senior Notes due January 2025	975			881		975			936
4.875% Senior Notes due June 2027	695			590		695			650
5.75% Senior Notes due December 2034	489			385		489			441
	$	4,356		$	3,933	$	4,855		$	4,702
Less: debt issuance costs	(32		)	—		(36		)	—
Long-term debt, net of debt issuance costs	$	4,324		$	3,933	$	4,819		$	4,702
Less: current portion of long-term debt, net of debt issuance costs	—			—		(499		)	(501		)
Long-term debt, less current portion	$	4,324		$	3,933	$	4,320		$	4,201

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Equity (Tables)

6 Months Ended

Dec. 28, 2018

Equity [Abstract]

Schedule of Share Repurchases

The following table sets forth information with respect to repurchases of the Company’s shares during the six months ended December 28, 2018:

(In millions)	Number of Shares Repurchased	Dollar Value of Shares Repurchased
Repurchases of ordinary shares	6	$	286
Tax withholding related to vesting of equity awards	1	30
Total	7	$	316

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Revenue (Tables)

6 Months Ended

Dec. 28, 2018

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table provides information about disaggregated revenue by sales channel and geographical region for theCompany’s single reportable segment:

	For the Three Months Ended				For the Six Months Ended
(Dollars in million)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Revenues by Channel
OEMs	$	1,865	$	1,996	$	4,003	$	3,830
Distributors	443		495		977		929
Retailers	407		423		726		787
Total	$	2,715	$	2,914	$	5,706	$	5,546
Revenues by Geography(1)
Americas	$	731	$	913	$	1,737	$	1,788
EMEA	598		567		1,115		1,039
Asia Pacific	1,386		1,434		2,854		2,719
Total	$	2,715	$	2,914	$	5,706	$	5,546

__________________________________________

⁽¹⁾ Revenue is attributed to countries based on bill from locations.

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Guarantees (Tables)

6 Months Ended

Dec. 28, 2018

Guarantees [Abstract]

Schedule of Product Warranty Liability

Changes in the Company’s product warranty liability during the three and six months endedDecember 28, 2018 and December 29, 2017 were as follows:

	For the Three Months Ended						For the Six Months Ended
(Dollars in millions)	December 28, 2018			December 29, 2017			December 28, 2018			December 29, 2017
Balance, beginning of period	$	232		$	230		$	237		$	233
Warranties issued	31			40			65			75
Repairs and replacements	(27		)	(27		)	(52		)	(54		)
Changes in liability for pre-existing warranties, including expirations	(14		)	(7		)	(28		)	(18		)
Balance, end of period	$	222		$	236		$	222		$	236

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Earnings Per Share (Tables)

6 Months Ended

Dec. 28, 2018

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted net income (loss) per share

The following table sets forth the computation of basic and diluted net income per share attributable to the shareholders of the Company:

	For the Three Months Ended				For the Six Months Ended
(In millions, except per share data)	December 28, 2018		December 29, 2017		December 28, 2018		December 29, 2017
Numerator:
Net income	$	384	$	159	$	834	$	340
Number of shares used in per share calculations:
Total shares for purposes of calculating basic net income per share	285		288		286		289
Weighted-average effect of dilutive securities:
Employee equity award plans	2		3		4		2
Total shares for purpose of calculating diluted net income per share	287		291		290		291
Net income per share:
Basic	$	1.35	$	0.55	$	2.92	$	1.18
Diluted	$	1.34	$	0.55	$	2.88	$	1.17

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Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details)	3 Months Ended		12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Jun. 28, 2019
Schedule of Fiscal Years [Line Items]
Fiscal Period Duration	91 days	91 days
Scenario, forecast [Member]
Schedule of Fiscal Years [Line Items]
Fiscal Period Duration			365 days

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Basis of Presentation and Summary of Significant Accounting Policies Cumulative effect of the change to the Condensed Consolidated Balance Sheet from the adoption of ASC 606 (Details) - USD ($) $ in Millions	Dec. 28, 2018	Jun. 30, 2018	Jun. 29, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net	$ 1,058	$ 1,193	$ 1,184
Inventories	1,097	1,044	1,053
Accrued expenses	589	564	598
Accumulated deficit	$ (4,502)	$ (4,662)	(4,696)
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net			1,184
Inventories			1,053
Accrued expenses			598
Accumulated deficit			(4,696)
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net			9
Inventories			(9)
Accrued expenses			(34)
Accumulated deficit			$ 34

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Balance Sheet Information (Summary of fair value and amortized cost of investments, by major type) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Jun. 29, 2018
Available-for-sale debt securities:
Amortized Cost	$ 880	$ 1,016
Unrealized Gain/(Loss)	0	0
Fair Value	880	1,016
Cash and cash equivalents [Member]
Available-for-sale debt securities:
Fair Value	877	1,012
Other current assets [Member]
Available-for-sale debt securities:
Fair Value	3	4
Money market funds [Member]
Available-for-sale debt securities:
Amortized Cost	454	621
Unrealized Gain/(Loss)	0	0
Fair Value	454	621
Time deposits and certificates of deposit [Member]
Available-for-sale debt securities:
Amortized Cost	426	395
Unrealized Gain/(Loss)	0	0
Fair Value	$ 426	$ 395

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Balance Sheet Information Balance Sheet Information (Narrative) (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 28, 2018	Dec. 28, 2018	Jun. 29, 2018	Dec. 29, 2017	Jun. 30, 2017
Schedule of Held-to-maturity Securities [Line Items]
Interest Income, Debt Securities, Held-to-maturity	$ 15,000,000	$ 31,000,000
Restricted cash included in Other current assets	3,000,000	3,000,000	$ 4,000,000	$ 4,000,000	$ 4,000,000
Available-for-sale securities, continuous unrealized loss position, fair value	$ 0	0	0
Other than temporary impairment losses, investments, available-for-sale securities		$ 0	0
K.K. Pangea [Member] | Preferred Non-Convertible Stock [Member]
Schedule of Held-to-maturity Securities [Line Items]
Debt securities, held-to-maturity			$ 1,300,000,000
Debt instrument, term	6 years
Other-than-temporary Impairment Loss, Debt Securities, Held-to-maturity, before Tax	$ 0

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Balance Sheet Information (Fair value and amortized cost of available-for-sale securities by contractual maturity) (Details) $ in Millions	Dec. 28, 2018 USD ($)
Amortized Cost
Amortized cost, due in less than 1 year	$ 880
Amortized cost, due in 1 to 5 years	0
Amortized cost, due in 6 to 10 years	0
Amortized cost, thereafter	0
Amortized Cost	880
Fair Value
Fair value, due in less than 1 year	880
Fair value, due in 1 to 5 years	0
Fair value, due in 6 to 10 years	0
Fair value, thereafter	0
Fair Value	$ 880

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Balance Sheet Information (Cash, Cash Equivalents, and Restricted Cash) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Jun. 29, 2018	Dec. 29, 2017	Jun. 30, 2017
Investments, Debt and Equity Securities [Abstract]
Cash and cash equivalents	$ 1,357	$ 1,853	$ 2,556	$ 2,539
Restricted cash included in Other current assets	3	4	4	4
Total cash, cash equivalents and restricted cash shown in the Statements of Cash Flows	$ 1,360	$ 1,857	$ 2,560	$ 2,543

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Balance Sheet Information (Inventories) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Jun. 30, 2018	Jun. 29, 2018
Inventory, Net [Abstract]
Raw materials and components	$ 337		$ 329
Work-in-process	281		347
Finished goods	479		377
Total inventories	$ 1,097	$ 1,044	$ 1,053

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Balance Sheet Information (Property, Equipment and Leasehold Improvements, net) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Jun. 29, 2018
Property, Plant and Equipment, Net [Abstract]
Property, equipment and leasehold improvements	$ 9,689	$ 9,525
Accumulated depreciation and amortization	(7,866)	(7,733)
Property, equipment and leasehold improvements, net	$ 1,823	$ 1,792

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Balance Sheet Information (Accrued expenses) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Jun. 30, 2018	Jun. 29, 2018
Payables and Accruals [Abstract]
Dividends payable	$ 178		$ 181
Other accrued expenses	411		417
Total accrued expenses	$ 589	$ 564	$ 598

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Balance Sheet Information (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	$ (4)	$ 0	$ (1)	$ 0
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax	0	0	0	0
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax	0	0	0	0
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			1,665
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	1	0	2	0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	0	0	0	0
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	0	0	0	0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(5)	0	(3)	0
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax	0	0	0	0
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	0	0	0	0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(4)	2	(2)	6
Other comprehensive income (loss)	(9)	2	(5)	6
Ending balance	1,934		1,934
Accumulated Other Comprehensive Loss [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(16)	(17)
Other comprehensive income (loss) before reclassifications	(3)			6
Amounts reclassified from AOCI	(2)			0
Other comprehensive income (loss)	(5)			6
Ending balance	(21)	(11)	(21)	(11)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax	(1)			0
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			0	0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	2			0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(3)			0
Ending balance	(3)	0	(3)	0
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax	0			0
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			0	0
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	0			0
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, after Tax	0			0
Ending balance	0	0	0	0
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss) Arising During Period, after Tax	0			0
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(4)	(5)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	0			0
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	0			0
Ending balance	(4)	(5)	(4)	(5)
Foreign currency translation adjustments [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(12)	(12)
Other comprehensive income (loss) before reclassifications	(2)			6
Amounts reclassified from AOCI	0			0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(2)			6
Ending balance	$ (14)	$ (6)	$ (14)	$ (6)

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Debt (Narrative) (Details) - USD ($)		3 Months Ended	6 Months Ended
	Nov. 15, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017	Feb. 03, 2017	May 14, 2015	Jan. 15, 2015	Dec. 02, 2014	May 28, 2014	Nov. 05, 2013	May 22, 2013	Apr. 30, 2013
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity							$ 700,000,000
Sub-limit for issuance of letters of credit under revolving credit facility												$ 75,000,000
Line of credit facility letters of credit outstanding			$ 0
Repayments of long-term debt, long-term capital lease obligations, and capital securities			$ 499,000,000	$ 152,000,000
Senior Notes 3.75 Percent due November 2018 [Member]
Debt Instrument [Line Items]
Aggregate principal amount										$ 800,000,000
Stated interest rate (as a percent)										3.75%
Debt repurchase		$ 128,000,000		$ 150,000,000
Gain (loss) on repurchase of debt instrument		$ 2,000,000
Repayments of long-term debt, long-term capital lease obligations, and capital securities	$ 499,000,000
Senior Notes 4.25 Percent Due March 2022 [Member]
Debt Instrument [Line Items]
Aggregate principal amount					$ 750,000,000.00
Stated interest rate (as a percent)					4.25%
Senior Notes 4.75 Percent Due June 2023 [Member]
Debt Instrument [Line Items]
Aggregate principal amount											$ 1,000,000,000
Stated interest rate (as a percent)											4.75%
Senior Notes 4.875 Percent Due March 2024 [Member]
Debt Instrument [Line Items]
Aggregate principal amount					$ 500,000,000.0
Stated interest rate (as a percent)					4.875%
Senior Notes 4.75 Percent Due January 2025 [Member]
Debt Instrument [Line Items]
Aggregate principal amount									$ 1,000,000,000
Stated interest rate (as a percent)									4.75%
Senior Notes 4.875 percent Due June 2027 [Member]
Debt Instrument [Line Items]
Aggregate principal amount						$ 700,000,000
Stated interest rate (as a percent)						4.875%
Senior note 5.75 percent due December 2034 [Member]
Debt Instrument [Line Items]
Aggregate principal amount								$ 500,000,000
Stated interest rate (as a percent)								5.75%

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Debt (Future principal payments on long-term debt) (Details) $ in Millions	Dec. 28, 2018 USD ($)
Debt Disclosure [Abstract]
Repayments of long-term debt, remainder of 2019	$ 0
Repayments of long-term debt, 2020	0
Repayments of long-term debt, 2021	0
Repayments of long-term debt, 2022	750
Repayments of long-term debt, 2023	951
Thereafter	2,662
Total future principal payments on long-term debt	$ 4,363

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Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Income tax expense (benefit)	$ 14	$ 212	$ 32	$ 219
Discrete tax (benefits) charges	5	$ (1)	4	$ (197)
Unrecognized tax benefits, period increase (decrease)			20
Unrecognized tax benefits	40		40
Unrecognized tax benefits that would impact effective tax rate	40		40
Minimum [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit	$ 7		$ 7
Ireland [Member]
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Federal statutory rate (as a percent)	25.00%	25.00%

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Goodwill and Other Intangible Assets (Changes in the carrying amount of goodwill) (Details) $ in Millions	6 Months Ended
	Dec. 28, 2018 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 1,237
Goodwill acquired	0
Goodwill disposed	0
Foreign currency translation effect	0
Goodwill, ending balance	$ 1,237

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Goodwill and Other Intangible Assets (Carrying value of intangible assets) (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 28, 2018	Jun. 29, 2018
Intangible assets acquired
Gross Carrying Amount	$ 398	$ 407
Accumulated Amortization	(249)	(219)
Net Carrying Amount	$ 149	$ 188
Weighted-Average Remaining Useful Life	2 years 7 months 6 days	2 years 11 months
Technology-Based Intangible Assets [Member]
Intangible assets acquired
Gross Carrying Amount	$ 250	$ 256
Accumulated Amortization	(166)	(145)
Net Carrying Amount	$ 84	$ 111
Weighted-Average Remaining Useful Life	2 years 1 month 6 days	2 years 6 months 12 days
Customer relationships [Member]
Intangible assets acquired
Gross Carrying Amount	$ 89	$ 89
Accumulated Amortization	(49)	(42)
Net Carrying Amount	$ 40	$ 47
Weighted-Average Remaining Useful Life	3 years 7 months 6 days	4 years 12 days
Trade name [Member]
Intangible assets acquired
Gross Carrying Amount	$ 17	$ 17
Accumulated Amortization	(15)	(13)
Net Carrying Amount	$ 2	$ 4
Weighted-Average Remaining Useful Life	10 months 24 days	1 year 3 months
Other Intangible Assets [Member]
Intangible assets acquired
Gross Carrying Amount	$ 42	$ 45
Accumulated Amortization	(19)	(19)
Net Carrying Amount	$ 23	$ 26
Weighted-Average Remaining Useful Life	2 years 10 months 24 days	3 years

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Goodwill and Other Intangible Assets (Expected amortization expense for acquisition-related intangible assets) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017	Jun. 29, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangibles	$ 20	$ 33	$ 39	$ 69
Remainder of 2019	38		38
2019	57		57
2020	29		29
2021	20		20
2022	5		5
Thereafter	0		0
Total	$ 149		$ 149		$ 188

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Restructuring and Exit Costs (Details)					3 Months Ended	6 Months Ended			13 Months Ended	22 Months Ended	30 Months Ended
	Dec. 08, 2017	Jul. 25, 2017	Mar. 09, 2017	Jul. 11, 2016	Dec. 28, 2018 USD ($)	Dec. 28, 2018 USD ($)	Dec. 28, 2018 USD ($)	Dec. 29, 2017 USD ($)	Dec. 28, 2018 USD ($)	Dec. 28, 2018 USD ($)	Dec. 28, 2018 USD ($)
Restructuring Reserve [Roll Forward]
Restructuring charges					$ 5,000,000		$ 28,000,000
December 2017 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, number of positions eliminated	500
July 2017 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, number of positions eliminated		600
March 2017 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, number of positions eliminated			300
July 2016 Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and related cost, number of positions eliminated				6,500
Employee severance [Member] | December 2017 Plan [Member]
Restructuring Reserve [Roll Forward]
Restructuring accrual, beginning balance							5,000,000
Restructuring charges							0
Cash payments							(5,000,000)
Adjustments							0
Restructuring accrual, ending balance					0	$ 0	0		$ 0	$ 0	$ 0
Total costs incurred to date as of December 28, 2018									26,000,000
Total expected charges to be incurred as of December 28, 2018					0	0	0		0	0	0
Employee severance [Member] | July 2017 Plan [Member]
Restructuring Reserve [Roll Forward]
Restructuring accrual, beginning balance							0
Restructuring charges							0
Cash payments							0
Adjustments							0
Restructuring accrual, ending balance					0	0	0		0	0	0
Total costs incurred to date as of December 28, 2018						37,000,000
Total expected charges to be incurred as of December 28, 2018					0	0	0		0	0	0
Employee severance [Member] | March 2017 Plan [Member]
Restructuring Reserve [Roll Forward]
Restructuring accrual, beginning balance							1,000,000
Restructuring charges							0
Cash payments							0
Adjustments							0
Restructuring accrual, ending balance					1,000,000	1,000,000	1,000,000		1,000,000	1,000,000	1,000,000
Total costs incurred to date as of December 28, 2018										31,000,000
Total expected charges to be incurred as of December 28, 2018					0	0	0		0	0	0
Employee severance [Member] | July 2016 Plan [Member]
Restructuring Reserve [Roll Forward]
Restructuring accrual, beginning balance							2,000,000
Restructuring charges							0
Cash payments							(1,000,000)
Adjustments							0
Restructuring accrual, ending balance					1,000,000	1,000,000	1,000,000		1,000,000	1,000,000	1,000,000
Total costs incurred to date as of December 28, 2018											82,000,000
Total expected charges to be incurred as of December 28, 2018					0	0	0		0	0	0
Employee severance [Member] | Other Restructuring Plans [Member]
Restructuring Reserve [Roll Forward]
Restructuring accrual, beginning balance							11,000,000
Restructuring charges							21,000,000
Cash payments							(30,000,000)
Adjustments							1,000,000
Restructuring accrual, ending balance					3,000,000	3,000,000	3,000,000		3,000,000	3,000,000	3,000,000
Total costs incurred to date as of December 28, 2018							262,000,000
Total expected charges to be incurred as of December 28, 2018					0	0	0		0	0	0
Facility closing [Member] | December 2017 Plan [Member]
Restructuring Reserve [Roll Forward]
Restructuring accrual, beginning balance							4,000,000
Restructuring charges							2,000,000
Cash payments							(3,000,000)
Adjustments							(1,000,000)
Restructuring accrual, ending balance					2,000,000	2,000,000	2,000,000		2,000,000	2,000,000	2,000,000
Total costs incurred to date as of December 28, 2018									7,000,000
Total expected charges to be incurred as of December 28, 2018					1,000,000	1,000,000	1,000,000		1,000,000	1,000,000	1,000,000
Facility closing [Member] | July 2017 Plan [Member]
Restructuring Reserve [Roll Forward]
Restructuring accrual, beginning balance							1,000,000
Restructuring charges							0
Cash payments							0
Adjustments							(1,000,000)
Restructuring accrual, ending balance					0	0	0		0	0	0
Total costs incurred to date as of December 28, 2018						3,000,000
Total expected charges to be incurred as of December 28, 2018					0	0	0		0	0	0
Facility closing [Member] | March 2017 Plan [Member]
Restructuring Reserve [Roll Forward]
Restructuring accrual, beginning balance							0
Restructuring charges							0
Cash payments							0
Adjustments							0
Restructuring accrual, ending balance					0	0	0		0	0	0
Total costs incurred to date as of December 28, 2018										3,000,000
Total expected charges to be incurred as of December 28, 2018					0	0	0		0	0	0
Facility closing [Member] | July 2016 Plan [Member]
Restructuring Reserve [Roll Forward]
Restructuring accrual, beginning balance							0
Restructuring charges							3,000,000
Cash payments							(3,000,000)
Adjustments							0
Restructuring accrual, ending balance					0	0	0		0	0	0
Total costs incurred to date as of December 28, 2018											37,000,000
Total expected charges to be incurred as of December 28, 2018					0	0	0		0	0	0
Facility closing [Member] | Other Restructuring Plans [Member]
Restructuring Reserve [Roll Forward]
Restructuring accrual, beginning balance							18,000,000
Restructuring charges							3,000,000
Cash payments							(4,000,000)
Adjustments							0
Restructuring accrual, ending balance					17,000,000	17,000,000	17,000,000		17,000,000	17,000,000	17,000,000
Total costs incurred to date as of December 28, 2018							62,000,000
Total expected charges to be incurred as of December 28, 2018					1,000,000	1,000,000	1,000,000		1,000,000	1,000,000	1,000,000
Restructuring Charges [Member]
Restructuring Reserve [Roll Forward]
Restructuring accrual, beginning balance							42,000,000
Restructuring charges							29,000,000
Cash payments							(46,000,000)
Adjustments							(1,000,000)
Restructuring accrual, ending balance					24,000,000	24,000,000	24,000,000		24,000,000	24,000,000	24,000,000
Total costs incurred to date as of December 28, 2018							550,000,000
Total expected charges to be incurred as of December 28, 2018					2,000,000	$ 2,000,000	2,000,000		$ 2,000,000	$ 2,000,000	$ 2,000,000
Restructuring Charges [Member] | Land and Building [Member]
Restructuring Cost and Reserve [Line Items]
Impairment of long-lived assets held-for-use					$ 2,000,000		$ 2,000,000	$ 0

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Derivative Financial Instruments Derivative Financial Instruments (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017	Jun. 29, 2018
Foreign currency forward exchange contracts [Member]
Derivative Financial Instruments
Derivative, notional amount		$ 0		$ 0
Cash Flow Hedging [Member]
Derivative Financial Instruments
Unrealized Gain (Loss) on Cash Flow Hedging Instruments	$ 3,000,000				$ 0
Gain or (loss) recognized in income, ineffective portion of hedging relationship	1,000,000	$ 0	$ 2,000,000	$ 0
Derivatives not designated as hedging instruments [Member] | Foreign currency forward exchange contracts [Member]
Derivative Financial Instruments
Derivative, notional amount	1,355,000,000		1,355,000,000
Derivatives not designated as hedging instruments [Member] | Total Return Swap [Member]
Derivative Financial Instruments
Derivative, notional amount	$ 103,000,000		$ 103,000,000

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Derivative Financial Instruments (Schedule of the effect of derivative instruments on Other comprehensive income (loss) and the Consolidated Statement of Operations) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Foreign currency forward exchange contracts [Member] | Other Nonoperating Income (Expense) [Member]
Derivatives Instruments, Gain (Loss)
Amount of Gain or (Loss) Recognized in Income on Derivative	$ (13)	$ 0	$ 0	$ 0
Total Return Swap [Member] | Operating Expense [Member]
Derivatives Instruments, Gain (Loss)
Amount of Gain or (Loss) Recognized in Income on Derivative	(15)	$ 4	(11)	$ 7
Cash Flow Hedges [Member] | Foreign currency forward exchange contracts [Member]
Derivatives Instruments, Gain (Loss)
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion)	(4)		(1)
Cash Flow Hedges [Member] | Foreign currency forward exchange contracts [Member] | Other Expense [Member]
Derivatives Instruments, Gain (Loss)
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)	1		2
Amount of Gain or (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a)	$ 1		$ 1

XML

Derivative Financial Instruments Derivative Financial Instruments (Schedule of notional value of outstanding foreign currency forward exchange contracts) (Details) - Foreign currency forward exchange contracts [Member] - USD ($)	Dec. 28, 2018	Jun. 29, 2018	Dec. 29, 2017
Derivative Financial Instruments
Derivative, notional amount			$ 0
Designated as Hedging Instrument [Member]
Derivative Financial Instruments
Derivative, notional amount	$ 163,000,000
Derivatives not designated as hedging instruments [Member]
Derivative Financial Instruments
Derivative, notional amount	1,355,000,000
Japan, Yen | Designated as Hedging Instrument [Member]
Derivative Financial Instruments
Derivative, notional amount	55,000,000	$ 66,000,000
Japan, Yen | Derivatives not designated as hedging instruments [Member]
Derivative Financial Instruments
Derivative, notional amount	1,299,000,000	$ 1,310,000,000
Thailand, Baht | Designated as Hedging Instrument [Member]
Derivative Financial Instruments
Derivative, notional amount	19,000,000
Thailand, Baht | Derivatives not designated as hedging instruments [Member]
Derivative Financial Instruments
Derivative, notional amount	19,000,000
Singapore, Dollars | Designated as Hedging Instrument [Member]
Derivative Financial Instruments
Derivative, notional amount	25,000,000
Singapore, Dollars | Derivatives not designated as hedging instruments [Member]
Derivative Financial Instruments
Derivative, notional amount	25,000,000
China, Yuan Renminbi | Designated as Hedging Instrument [Member]
Derivative Financial Instruments
Derivative, notional amount	20,000,000
China, Yuan Renminbi | Derivatives not designated as hedging instruments [Member]
Derivative Financial Instruments
Derivative, notional amount	0
United Kingdom, Pounds | Designated as Hedging Instrument [Member]
Derivative Financial Instruments
Derivative, notional amount	44,000,000
United Kingdom, Pounds | Derivatives not designated as hedging instruments [Member]
Derivative Financial Instruments
Derivative, notional amount	$ 12,000,000

XML

Derivative Financial Instruments Derivative Financial Instruments (Schedule of gross fair value of derivative instruments) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Jun. 29, 2018
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	$ 1	$ 10
Derivative liability, fair value, gross liability	(31)	0
Foreign currency forward exchange contracts [Member] | Designated as Hedging Instrument [Member] | Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	0	0
Foreign currency forward exchange contracts [Member] | Designated as Hedging Instrument [Member] | Accrued Expenses [Member]
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability	(3)	0
Foreign currency forward exchange contracts [Member] | Derivatives not designated as hedging instruments [Member] | Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	0	10
Foreign currency forward exchange contracts [Member] | Derivatives not designated as hedging instruments [Member] | Accrued Expenses [Member]
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability	(28)	0
Total Return Swap [Member] | Derivatives not designated as hedging instruments [Member] | Other current assets [Member]
Derivatives, Fair Value [Line Items]
Derivative asset, fair value, gross asset	1	0
Total Return Swap [Member] | Derivatives not designated as hedging instruments [Member] | Accrued Expenses [Member]
Derivatives, Fair Value [Line Items]
Derivative liability, fair value, gross liability	$ 0	$ 0

XML

Fair Value (Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis) (Details) - Recurring basis [Member] - USD ($)	Dec. 28, 2018	Jun. 29, 2018
Assets:
Total cash equivalents	$ 877,000,000	$ 1,012,000,000
Restricted cash and investments:
Total assets	881,000,000	1,026,000,000
Liabilities:
Total liabilities	31,000,000
Money market funds [Member]
Assets:
Total cash equivalents	454,000,000	620,000,000
Restricted cash and investments:
Restricted cash and investments:		1,000,000
Time deposits and certificates of deposit [Member]
Assets:
Total cash equivalents	423,000,000	392,000,000
Restricted cash and investments:
Restricted cash and investments:	3,000,000	3,000,000
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member]
Assets:
Total cash equivalents	454,000,000	620,000,000
Restricted cash and investments:
Total assets	454,000,000	621,000,000
Liabilities:
Total liabilities	0
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Money market funds [Member]
Assets:
Total cash equivalents	454,000,000	620,000,000
Restricted cash and investments:
Restricted cash and investments:		1,000,000
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member] | Time deposits and certificates of deposit [Member]
Assets:
Total cash equivalents	0	0
Restricted cash and investments:
Restricted cash and investments:	0	0
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Total cash equivalents	423,000,000	392,000,000
Restricted cash and investments:
Total assets	427,000,000	405,000,000
Liabilities:
Total liabilities	31,000,000
Significant Other Observable Inputs (Level 2) [Member] | Money market funds [Member]
Assets:
Total cash equivalents	0	0
Restricted cash and investments:
Restricted cash and investments:		0
Significant Other Observable Inputs (Level 2) [Member] | Time deposits and certificates of deposit [Member]
Assets:
Total cash equivalents	423,000,000	392,000,000
Restricted cash and investments:
Restricted cash and investments:	3,000,000	3,000,000
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Total cash equivalents	0	0
Restricted cash and investments:
Total assets	0	0
Liabilities:
Total liabilities	0	0
Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member]
Assets:
Total cash equivalents	0	0
Restricted cash and investments:
Restricted cash and investments:		0
Significant Unobservable Inputs (Level 3) [Member] | Time deposits and certificates of deposit [Member]
Assets:
Total cash equivalents	0	0
Restricted cash and investments:
Restricted cash and investments:	0	0
Derivative Financial Instruments, Assets [Member]
Restricted cash and investments:
Derivative assets	1,000,000	10,000,000
Derivative Financial Instruments, Assets [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member]
Restricted cash and investments:
Derivative assets	0	0
Derivative Financial Instruments, Assets [Member] | Significant Other Observable Inputs (Level 2) [Member]
Restricted cash and investments:
Derivative assets	1,000,000	10,000,000
Derivative Financial Instruments, Assets [Member] | Significant Unobservable Inputs (Level 3) [Member]
Restricted cash and investments:
Derivative assets	0	$ 0
Derivative Financial Instruments, Liabilities [Member]
Liabilities:
Derivative liabilities	31,000,000
Derivative Financial Instruments, Liabilities [Member] | Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member]
Liabilities:
Derivative liabilities	0
Derivative Financial Instruments, Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Liabilities:
Derivative liabilities	31,000,000
Derivative Financial Instruments, Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Liabilities:
Derivative liabilities	$ 0

XML

Fair Value (Schedule of Fair Value, by Balance Sheet Grouping, Measured on Recurring Basis) (Details) - Recurring basis [Member] - USD ($)	Dec. 28, 2018	Jun. 29, 2018
Assets:
Cash and cash equivalents	$ 877,000,000	$ 1,012,000,000
Other current assets	4,000,000	14,000,000
Total assets	881,000,000	1,026,000,000
Liabilities:
Accrued expenses	31,000,000
Total liabilities	31,000,000
Quoted Prices in Active Markets for Identical Instruments (Level 1) [Member]
Assets:
Cash and cash equivalents	454,000,000	620,000,000
Other current assets	0	1,000,000
Total assets	454,000,000	621,000,000
Liabilities:
Accrued expenses	0
Total liabilities	0
Significant Other Observable Inputs (Level 2) [Member]
Assets:
Cash and cash equivalents	423,000,000	392,000,000
Other current assets	4,000,000	13,000,000
Total assets	427,000,000	405,000,000
Liabilities:
Accrued expenses	31,000,000
Total liabilities	31,000,000
Significant Unobservable Inputs (Level 3) [Member]
Assets:
Cash and cash equivalents	0	0
Other current assets	0	0
Total assets	0	0
Liabilities:
Accrued expenses	0
Total liabilities	$ 0	$ 0

XML

Fair Value (Schedule of Carrying Values and Estimated Fair Values of Debt Instruments) (Details) - USD ($) $ in Millions	Dec. 28, 2018	Jun. 29, 2018	Feb. 03, 2017	May 14, 2015	Dec. 02, 2014	May 28, 2014	Nov. 05, 2013	May 22, 2013
Debt Fair Value Disclosures
Debt issuance costs	$ 32	$ 36
Long-term debt, less current portion	4,324	4,320
Senior Notes 3.75 Percent due November 2018 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)							3.75%
Senior Notes 4.25 Percent Due March 2022 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)			4.25%
Senior Notes 4.75 Percent Due June 2023 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)								4.75%
Senior Notes 4.875 Percent Due March 2024 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)			4.875%
Senior Notes 4.75 Percent Due January 2025 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)						4.75%
Senior Notes 4.875 percent Due June 2027 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)				4.875%
Senior note 5.75 percent due December 2034 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)					5.75%
Carrying Amount [Member]
Debt Fair Value Disclosures
Senior Notes	4,356	4,855
Long-term Debt, Current Maturities	0	499
Long-term debt, net of debt issuance costs	4,324	4,819
Long-term debt, less current portion	$ 4,324	4,320
Carrying Amount [Member] | Senior Notes 3.75 Percent due November 2018 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)	3.75%
Senior Notes	$ 0	499
Carrying Amount [Member] | Senior Notes 4.25 Percent Due March 2022 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)	4.25%
Senior Notes	$ 749	749
Carrying Amount [Member] | Senior Notes 4.75 Percent Due June 2023 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)	4.75%
Senior Notes	$ 951	951
Carrying Amount [Member] | Senior Notes 4.875 Percent Due March 2024 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)	4.875%
Senior Notes	$ 497	497
Carrying Amount [Member] | Senior Notes 4.75 Percent Due January 2025 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)	4.75%
Senior Notes	$ 975	975
Carrying Amount [Member] | Senior Notes 4.875 percent Due June 2027 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)	4.875%
Senior Notes	$ 695	695
Carrying Amount [Member] | Senior note 5.75 percent due December 2034 [Member]
Debt Fair Value Disclosures
Stated interest rate (as a percent)	5.75%
Senior Notes	$ 489	489
Fair Value, Total Balance [Member]
Debt Fair Value Disclosures
Senior Notes	3,933	4,702
Long-term Debt, Current Maturities	0	501
Long-term debt, net of debt issuance costs	3,933	4,702
Long-term debt, less current portion	3,933	4,201
Fair Value, Total Balance [Member] | Senior Notes 3.75 Percent due November 2018 [Member]
Debt Fair Value Disclosures
Senior Notes	0	501
Fair Value, Total Balance [Member] | Senior Notes 4.25 Percent Due March 2022 [Member]
Debt Fair Value Disclosures
Senior Notes	720	743
Fair Value, Total Balance [Member] | Senior Notes 4.75 Percent Due June 2023 [Member]
Debt Fair Value Disclosures
Senior Notes	897	942
Fair Value, Total Balance [Member] | Senior Notes 4.875 Percent Due March 2024 [Member]
Debt Fair Value Disclosures
Senior Notes	460	489
Fair Value, Total Balance [Member] | Senior Notes 4.75 Percent Due January 2025 [Member]
Debt Fair Value Disclosures
Senior Notes	881	936
Fair Value, Total Balance [Member] | Senior Notes 4.875 percent Due June 2027 [Member]
Debt Fair Value Disclosures
Senior Notes	590	650
Fair Value, Total Balance [Member] | Senior note 5.75 percent due December 2034 [Member]
Debt Fair Value Disclosures
Senior Notes	$ 385	$ 441

XML

Fair Value (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017	Jun. 29, 2018
Recurring basis [Member]
Auction rate securities
Total assets	$ 881,000,000		$ 881,000,000		$ 1,026,000,000
Total liabilities	31,000,000		31,000,000
Recurring basis [Member] | Significant Unobservable Inputs (Level 3) [Member]
Auction rate securities
Total assets	0		0		0
Total liabilities	0		0		0
Recurring basis [Member] | Significant Other Observable Inputs (Level 2) [Member]
Auction rate securities
Total assets	427,000,000		427,000,000		405,000,000
Total liabilities	31,000,000		31,000,000
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation
Debt securities, held-to-maturity, fair value	1,272		1,272
Debt securities, held-to-maturity, accumulated unrecognized loss	28		28
Debt securities, held-to-maturity	1,300		1,300
Other Nonoperating Income (Expense) [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation
Cost-method investments, other than temporary impairment		$ 0		$ 0
Land and Building [Member] | Restructuring Charges [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation
Impairment of long-lived assets held-for-use	2,000,000		2,000,000	0
Land and Building [Member] | Operating Expense [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation
Impairment of assets held for sale		$ 0		$ 0
Cost-method investments [Member] | Other current assets [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation
Cost method investment	111,000,000		111,000,000		118,000,000
Carrying Amount [Member] | Other current assets [Member] | Land and Building [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation
Assets held-for-sale, long lived, fair value	24,000,000		$ 24,000,000		26,000,000
K.K. Pangea [Member] | Preferred Non-Convertible Stock [Member]
Fair Value Measurements Using Significant Unobservable Inputs (Level 3), reconciliation
Debt securities, held-to-maturity					$ 1,300,000,000
Other-than-temporary Impairment Loss, Debt Securities, Held-to-maturity, before Tax	$ 0

XML

Equity (Narrative) (Details)	3 Months Ended
	Dec. 28, 2018 USD ($) $ / shares shares	Oct. 29, 2018 USD ($)
Equity, Class of Treasury Stock [Line Items]
Authorized share capital (in dollars) | $	$ 13,500
Ordinary shares, authorized (in shares)	1,250,000,000
Ordinary shares, par value (in dollars per share) | $ / shares	$ 0.00001
Ordinary shares, outstanding (in shares)	283,130,419
Preferred shares, authorized (in shares)	100,000,000
Preferred shares, par value (in dollars per share) | $ / shares	$ 0.00001
Preferred shares, issued (in shares)	0
Preferred shares, outstanding (in shares)	0
Common stock, voting rights	one vote per share
Preferred stock minimum number of series	1
Stock repurchase program, remaining authorized repurchase amount | $	$ 2,900,000,000
October 2018 Share Repurchase [Member]
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, authorized amount | $		$ 2,300,000,000

XML

Equity (Schedule of Share Repurchases) (Details) shares in Millions, $ in Millions	6 Months Ended
	Dec. 28, 2018 USD ($) shares
Dollar Value [Abstract]
Repurchases of ordinary shares (in shares) | shares	6
Tax withholding related to vesting of equity awards (in shares) | shares	1
Repurchases of ordinary shares and tax withholding related to vesting of equity awards (in shares) | shares	7
Repurchases of ordinary shares | $	$ 286
Tax withholding related to vesting of equity awards | $	30
Repurchases of ordinary shares and tax withholding related to vesting of equity awards | $	$ 316

XML

Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 2,715.0	$ 2,914.0	$ 5,706.0	$ 5,546.0
Americas
Disaggregation of Revenue [Line Items]
Revenue	731.0	913.0	1,737.0	1,788.0
EMEA
Disaggregation of Revenue [Line Items]
Revenue	598.0	567.0	1,115.0	1,039.0
Asia Pacific
Disaggregation of Revenue [Line Items]
Revenue	1,386.0	1,434.0	2,854.0	2,719.0
OEMs
Disaggregation of Revenue [Line Items]
Revenue	1,865.0	1,996.0	4,003.0	3,830.0
Distributors
Disaggregation of Revenue [Line Items]
Revenue	443.0	495.0	977.0	929.0
Retailers
Disaggregation of Revenue [Line Items]
Revenue	$ 407.0	$ 423.0	$ 726.0	$ 787.0

XML

Share-based Compensation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based compensation	$ 27	$ 27	$ 45	$ 59

XML

Guarantees Guarantees (Narrative) (Details)	3 Months Ended
	Dec. 28, 2018 USD ($)
Schedule of Fiscal Years [Line Items]
Indemnifications obligations to Officers and Directors	$ 0
Intellectual property indemnification obligations	$ 0
Minimum [Member]
Schedule of Fiscal Years [Line Items]
Product warranty period term	1 year
Maximum [Member]
Schedule of Fiscal Years [Line Items]
Product warranty period term	5 years

XML

Guarantees (Product Warranty) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Guarantees [Abstract]
Balance, beginning of period	$ 232	$ 230	$ 237	$ 233
Warranties issued	31	40	65	75
Repairs and replacements	(27)	(27)	(52)	(54)
Changes in liability for pre-existing warranties, including expirations	(14)	(7)	(28)	(18)
Balance, end of period	$ 222	$ 236	$ 222	$ 236

XML

Earnings Per Share (Schedule of computation of basic and diluted net income (loss) per share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Numerator:
Net income	$ 384	$ 159	$ 834	$ 340
Number of shares used in per share calculations:
Total shares for purposes of calculating basic net income per share	285	288	286	289
Weighted-average effect of dilutive securities:
Employee equity award plans	2	3	4	2
Total shares for purpose of calculating diluted net income per share	287	291	290	291
Net income per share:
Basic net income per share (in dollars per share)	$ 1.35	$ 0.55	$ 2.92	$ 1.18
Diluted net income per share (in dollars per share)	$ 1.34	$ 0.55	$ 2.88	$ 1.17
Stock Compensation Plan [Member]
Net income per share:
Antidilutive securities excluded from computation of Earnings Per Share, amount	1	1	1	2

XML

Commitments (Details) $ in Millions	Dec. 28, 2018 USD ($)
Purchase Obligation, Fiscal Year Maturity [Abstract]
2021	$ 4
2024	50
2025	48
2026	47
2027	28
Unconditional purchase commitment	177
Capital Addition Purchase Commitments [Member]
Purchase Obligation, Fiscal Year Maturity [Abstract]
Unconditional purchase commitment	$ 23

XML

Subsequent event (Details) - $ / shares		3 Months Ended		6 Months Ended
	Feb. 04, 2019	Dec. 28, 2018	Dec. 29, 2017	Dec. 28, 2018	Dec. 29, 2017
Subsequent Event [Line Items]
Cash dividends declared per ordinary share (in dollars per share)		$ 0.63	$ 0.63	$ 1.26	$ 1.26
Subsequent Event [Member]
Subsequent Event [Line Items]
Cash dividends declared per ordinary share (in dollars per share)	$ 0.63