Income Taxes (Tables)

12 Months Ended

Jun. 27, 2014

Income Tax Disclosure [Abstract]

Domestic and Foreign Components of Income Before Income Taxes

The domestic and foreign components of income before income taxes were as follows for the three years ended June 27, 2014 (in millions):

	2014		2013		2012
Foreign	$	1,664	$	870	$	1,559
Domestic	88		352		198
Income before income taxes	$	1,752	$	1,222	$	1,757

Components of Provision for Income Taxes

The components of the provision for income taxes were as follows for the three years ended June 27, 2014 (in millions):

	2014			2013			2012
Current:
Foreign	$	47		$	57		$	12
Domestic-federal	98			149			98
Domestic-state	3			1			1
Deferred:
Foreign	(3		)	(7		)	18
Domestic-federal	(14		)	(46		)	25
Domestic-state	4			88			(9		)
Income tax provision	$	135		$	242		$	145

Deferred Tax Assets and Liabilities

Temporary differences and carryforwards, which give rise to a significant portion of deferred tax assets and liabilities as of June 27, 2014 and June 28, 2013 were as follows (in millions):

	2014			2013
Deferred tax assets:
Sales related reserves and accrued expenses not currently deductible	$	38		$	45
Accrued compensation and benefits not currently deductible	190			182
Domestic net operating loss carryforward	130			103
Business credit carryforward	155			123
Long-lived assets	58			47
Other	65			71
Total deferred tax assets	636			571
Deferred tax liabilities:
Long-lived assets	(152		)	(156		)
Other	(11		)	—
Total deferred tax liabilities	(163		)	(156		)
Valuation allowances	(128		)	(133		)
Deferred tax assets, net	$	345		$	282
Deferred tax assets:
Current portion (included in other current assets)	$	184		$	160
Non-current portion (included in other non-current assets)	452			411
Total deferred tax assets	636			571
Deferred tax liabilities:
Current portion (included in other current assets)	(2		)	—
Non-current portion (included in other non-current assets)	(161		)	(156		)
Total deferred tax liabilities	(163		)	(156		)
Valuation allowances (included in non-current portion of deferred tax assets)	(128		)	(133		)
Deferred tax assets, net	$	345		$	282

U.S. Federal Statutory Rate to Company's Effective Tax Rate

Reconciliation of the U.S. Federal statutory rate to the Company’s effective tax rate is as follows for the three years ended June 27, 2014:

	2014		2013		2012
U.S. Federal statutory rate	35	%	35	%	35	%
Tax rate differential on international income	(28	)	(19	)	(29	)
Tax effect of U.S. permanent differences	2		—		3
State income tax, net of federal tax	—		8		1
Income tax credits	(1	)	(4	)	(2	)
Effective tax rate	8	%	20	%	8	%

Total Amounts of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended June 27, 2014, June 28, 2013 and June 29, 2012 (in millions):

	2014			2013			2012
Unrecognized tax benefit at beginning of period	$	240		$	280		$	245
Gross increases related to current year tax positions	27			29			14
Gross increases related to prior year tax positions	26			10			—
Gross decreases related to prior year tax positions	(5		)	(8		)	—
Settlements	—			(64		)	(18		)
Lapse of statute of limitations	—			(7		)	—
Acquisitions	12			—			39
Unrecognized tax benefit at end of period	$	300		$	240		$	280