Income Tax Expense (Tables)

6 Months Ended

12 Months Ended

Dec. 27, 2024

Jun. 28, 2024

Income Tax Expense [Line Items]

Schedule of Components of Income Tax Expense (Benefit)

The following table presents the Company’s Income tax expense and the effective tax rate:

	Six Months Ended
	December 27, 2024			December 29, 2023
	($ in millions)
Income (loss) before taxes	$	440		$	(754	)
Income tax expense		125			65
Effective tax rate		28	%		(9	)%

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding accrued interest and penalties for the six months ended December 27, 2024:

	(in millions)
Accrual balance at June 28, 2024	$	47
Gross increases related to prior year tax positions		17
Gross increases related to current year tax positions		3
Gross decrease related to prior year tax positions		(7	)
Accrual balance at December 27, 2024	$	60

The Flash Business of Western Digital Corporation [Member]

Income Tax Expense [Line Items]

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Income (loss) Before Taxes

The domestic and foreign components of Income (loss) before taxes were as follows:

	2024			2023			2022
	(in millions)
Foreign	$	(543	)	$	(2,253	)	$	276
U.S.		40			251			958
Income (loss) before taxes	$	(503	)	$	(2,002	)	$	1,234

Schedule of Components of Income Tax Expense (Benefit)

Income Tax Expense

The components of the income tax expense were as follows:

	2024			2023			2022
	(in millions)
Current:
Foreign	$	158		$	138		$	84
U.S. - Federal		20			76			141
U.S. - State		7			8			13
		185			222			238
Deferred:
Foreign		7			(15	)		24
U.S. - Federal		(19	)		(65	)		(82	)
U.S. - State		(4	)		(1	)		(10	)
		(16	)		(81	)		(68	)
Total income tax expense (benefit)	$	169		$	141		$	170

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Temporary differences and carryforwards, which give rise to a significant portion of deferred tax assets and liabilities were as follows:

	June 28, 2024			June 30, 2023
	(in millions)
Deferred tax assets:
Sales related reserves and accrued expenses not currently deductible	$	45		$	56
Accrued compensation and benefits not currently deductible		17			7
Other current accruals		17			19
Net operating loss carryforward		19			15
Share based compensation		17			17
Long-lived assets		15			28
Lease liability		45			28
Unrealized gain (loss)		67			44
Other		8			1
Total deferred tax assets		250			215
Deferred tax liabilities:
Intangible assets		(3	)		(13	)
Foreign withholding tax		(86	)		(93	)
Right-of-use asset		(43	)		(26	)
Deferred income		(8	)		(3	)
Other		(2	)		(6	)
Total deferred tax liabilities		(142	)		(141	)
Valuation allowances		(27	)		(26	)
Deferred tax assets, net	$	81		$	48

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Reconciliation of the U.S. federal statutory rate to the Business’s effective tax rate is as follows:

	2024			2023			2022
Tax at federal statutory tax rate		21.0	%		21.0	%		21.0	%
Tax rate differential on international incomes		(42.3	)		(28.7	)		0.4
Foreign withholding tax		(10.8	)		(1.7	)		2.9
Change in valuation allowance		(2.2	)		(0.4	)		1.4
Tax effect of U.S foreign income inclusion		(1.2	)		(0.4	)		5.8
Tax effect of U.S foreign derived intangible income		1.9			3.1			(7.6	)
Tax effect of permanent differences		(1.4	)		(0.5	)		(0.1	)
Tax effect of goodwill impairment		—			(7.0	)		—
Tax effect of intangible assets		0.9			4.3			(6.5	)
Tax rate change		0.6			0.1			—
Unremitted earnings of certain non-U.S. entities		2.2			0.4			—
Change in uncertain tax positions		(11.4	)		0.6			0.5
Return to provision adjustment		(1.3	)		(0.2	)		(0.5	)
Foreign income tax credits		5.1			1.4			(2.4	)
R&D tax credits		2.7			1.0			(2.1	)
Tax effect of share-based compensation		(1.1	)		(0.5	)		0.9
Federal audit settlements		3.3			—			—
Other		0.4			0.5			0.1
Effective income tax rate		(33.6	)%		(7.0	)%		13.8	%

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits excluding accrued interest and penalties:

	2024			2023			2022
	(in millions)
Unrecognized tax benefit, beginning balance	$	25		$	17		$	11
Gross increases related to current year tax positions		15			10			7
Gross increases related to prior year tax positions		10			1			—
Gross decreases related to prior year tax positions		(3	)		(3	)		(1	)
Settlements		—			—			—
Unrecognized tax benefit, ending balance	$	47		$	25		$	17

Schedule of major jurisdictions within which the Business receives foreign

Jurisdiction	NOL Carryforward Amount		Expiration
	(in millions)
Malaysia	$	44		2028
Netherlands		12		2026

Summary of Income Tax Examinations [Table Text Block]

Jurisdiction	Period Subject to Examination
China (calendar)		2014-2023
Ireland (fiscal)		2020-2023
India (fiscal)		2009-2023
Israel (fiscal)		2014-2023
Japan (fiscal)		2017-2023
Malaysia (fiscal)		2017-2023
Singapore (fiscal)		2020-2023
United Kingdom (fiscal)		2022-2023