Income Tax Expense (Tables)

12 Months Ended

Jun. 28, 2024

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

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

	2024		2023		2022
	(in millions)
Foreign	$	(351)	$	(2,019)	$	1,432
Domestic	(310)		469		739
Income (loss) before taxes	$	(661)	$	(1,550)	$	2,171

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax expense were as follows:

	2024		2023		2022
	(in millions)
Current:
Foreign	$	260	$	153	$	143
Domestic - Federal	34		35		341
Domestic - State	4		(6)		25
	298		182		509
Deferred:
Foreign	13		(6)		29
Domestic - Federal	(152)		(36)		84
Domestic - State	(22)		(6)		3
	(161)		(48)		116
Income tax expense	$	137	$	134	$	625

Schedule of Deferred Tax Assets and Liabilities

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	$	66	$	69
Accrued compensation and benefits not currently deductible	116		88
Net operating loss carryforward	175		183
Business credit carryforward	528		478
Long-lived assets	75		72
Interest and hedging costs not currently deductible	254		76
Other	59		71
Total deferred tax assets	1,273		1,037
Deferred tax liabilities:
Long-lived assets	(46)		(57)
Unremitted earnings of certain non-U.S. entities	(286)		(291)
Other	(33)		(7)
Total deferred tax liabilities	(365)		(355)
Valuation allowances	(582)		(565)
Deferred tax assets, net	$	326	$	117

Schedule of Effective Income Tax Rate Reconciliation

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

	2024		2023		2022
U.S. Federal statutory rate	21	%	21	%	21	%
Tax rate differential on international income	(46)		(33)		(9)
Tax effect of U.S. foreign income inclusion	(2)		(1)		—
Tax effect of U.S. foreign minimum tax	—		—		5
Tax effect of U.S. foreign derived intangible income	3		4		(1)
Tax effect of U.S. non-deductible stock-based compensation	(1)		(1)		1
Tax effect of U.S. permanent differences	1		—		—
IRS Settlement	(1)		1		15
Change in valuation allowance	(3)		1		1
Unremitted earnings of certain non-U.S. entities	(4)		—		1
Foreign income tax credits	1		—		(3)
R&D tax credits	8		5		(4)
U.S. return to provision	—		(2)		—
Tax reserves	1		(1)		2
Other	1		(3)		—
Effective tax rate	(21)	%	(9)	%	29	%

Schedule of Operating Loss Carryforwards

Following is a summary of the Company’s federal and state NOL/tax credit carryforwards and the related expiration dates of these NOL/tax credit carryforwards:

Jurisdiction	NOL/Tax Credit Carryforward Amount		Expiration
	(in millions)
Federal NOL (Pre 2017 Act Generation)	$	578	2026 to 2038
State NOL	342		2037 to 2045
Federal tax credits	61		2025 to 2044
State tax credits	746		No expiration

The major jurisdictions that the Company receives foreign NOL carryforwards and the related amounts and expiration dates of these NOL carryforwards are as follows:

Jurisdiction	NOL Carryforward Amount		Expiration
	(in millions)
Belgium	$	114	No expiration
Malaysia	108		2028 to 2030
Japan	61		2025 to 2026
Spain	46		No expiration
Netherlands	12		2026

Schedule of Income Tax Contingencies

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	$	1,021	$	1,047	$	748
Gross increases related to current year tax positions	25		7		12
Gross increases related to prior year tax positions	73		22		358
Gross decreases related to prior year tax positions	(32)		(47)		(65)
Settlements	(363)		(5)		(1)
Lapse of statute of limitations	(3)		(3)		(5)
Unrecognized tax benefit, ending balance	$	721	$	1,021	$	1,047

Schedule of Major Foreign Jurisdictions

In the following major foreign jurisdictions where there is no tax holiday, the Company could be subject to examination as noted below:

Jurisdiction	Period Subject to Examination
China (calendar)	2014-2023
Ireland (fiscal)	2020-2023
India (fiscal)	2009-2023
Israel (fiscal)	2014-2023
Japan (fiscal)	2015-2023
Malaysia (fiscal)	2017-2023
Thailand (fiscal)	2014-2023
Singapore (fiscal)	2020-2023
United Kingdom (fiscal)	2022-2023