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TableofContents
OperatingExpenses
ProductDevelopmentExpense.Productdevelopmentexpensesforfiscalyear2016decreasedfromfiscalyear2015duetoadecreaseinsalariesandother
employeebenefitsof$63millionasaresultoftherestructuringofourworkforcebeginninginthesecondhalfoffiscalyear2015,a$29milliondecreasein
variablecompensation,andothercostreductionefforts,partiallyoffsetbytheconsolidationofDotHillinfiscalyear2016andLSI'sFlashBusinessinfiscalyear
2015.
MarketingandAdministrativeExpense.Marketingandadministrativeexpensesforfiscalyear2016decreasedfromfiscalyear2015primarilyduetoa
decreaseinsalariesandotheremployeebenefitsof$82millionasaresultofarestructuringofourworkforcebeginninginthesecondhalfoffiscalyear2015,a
$45milliondecreaseinvariablecompensationandstock-basedcompensation,a$33millionreductioninadvertisingduetothecompletionofcertainpromotional
andbrandingactivitiesinfiscalyear2016,andincreasedoperationalefficienciesinourbusiness.
AmortizationofIntangibles.Amortizationofintangiblesforfiscalyear2016decreasedby$6million,ascomparedtofiscalyear2015,asaresultofcertain
intangibleassetsreachingtheendoftheirusefullives,partiallyoffsetbytheamortizationofintangiblesacquiredfromtheDotHillacquisitioninfiscal2016.
RestructuringandOther,net.Restructuringandother,netforfiscalyear2016wascomprisedofrestructuringchargesrecordedduringtheSeptember2015
quarter,March2016quarterandJune2016quarter,toreduceourworkforcebyapproximately4,600employeesandalignourmanufacturingfootprintwithcurrent
macroeconomicconditions.
Restructuringandother,netforfiscalyear2015wasduetochargestoreduceourworkforceasaresultofourongoingfocusoncostefficienciesinallareasof
ourbusiness.
Gainonarbitrationaward,net.Gainonarbitrationaward,netforfiscalyear2015wasrelatedtothefinalawardamountof$630million,lesslitigationand
otherrelatedcostsof$10million,intheCompany'scaseagainstWesternDigitalforthemisappropriationoftheCompany'stradesecrets.
Otherincome(expense),net
Otherincome(expense),netforfiscalyear2016increasedby$83million,ascomparedtofiscalyear2015primarilyduetotheabsenceofpartialreceiptof
$143millionforinterestaccruedonthefinalarbitrationawardamountintheCompany'scaseagainstWesternDigitalinfiscalyear2015comparedto$33million
infiscalyear2016,anda$33millionchangeinforeigncurrencyremeasurementrelatedtonetgainsandlossesfromchangesinforeignexchangerates,whichwere
morepronouncedintheprioryear,partiallyoffsetby$74millionoflossesfromtheearlyredemptionsandrepurchasesofdebtinfiscalyear2015comparedtoa
$3milliongainfromtheearlyredemptionsandrepurchasesofdebtinfiscalyear2016.
49
 FiscalYearsEnded
(Dollarsinmillions) 
July1,
2016
July3,
2015 Change
%
Change
Productdevelopment  $ 1,237 $ 1,353 $ (116) (9)%
Marketingandadministrative   635  857  (222) (26)%
Amortizationofintangibles   123  129  (6)  (5)%
Restructuringandother,net   175  32  143  447%
Gainonarbitrationaward,net   —  (620) 620  (100)%
Operatingexpenses  $ 2,170 $ 1,751 $ 419  
 FiscalYearsEnded
(Dollarsinmillions) 
July1,
2016
July3,
2015 Change
%
Change
Otherincome(expense),net $ (171) $ (88) $ (83)  94%