INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Income before Income Taxes, Domestic and Foreign

The components of income before income taxes were as follows: 

	Year ended June 30,
(In thousands)	2020		2019		2018
Domestic income before income taxes	$	752,844	$	545,401	$	716,015
Foreign income before income taxes	563,867		750,830		739,916
Total income before income taxes	$	1,316,711	$	1,296,231	$	1,455,931

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes was comprised of the following: 

(In thousands)	Year ended June 30,
	2020		2019		2018
Current:
Federal	$	108,136	$	82,460	$	504,758
State	518		5,665		6,422
Foreign	86,374		59,274		41,414
	195,028		147,399		552,594
Deferred:
Federal	(26,743)		1,636		98,702
State	(1,174)		2,118		1,526
Foreign	(65,425)		(29,939)		844
	(93,342)		(26,185)		101,072
Provision for income taxes	$	101,686	$	121,214	$	653,666

Schedule of Deferred Tax Assets and Liabilities

The significant components of deferred income tax assets and liabilities were as follows:

(In thousands)	As of June 30,
	2020		2019
Deferred tax assets:
Tax credits and net operating losses	$	214,305	$	208,572
Employee benefits accrual	67,729		65,065
Stock-based compensation	8,871		9,432
Inventory reserves	73,939		67,249
Non-deductible reserves	20,526		21,633
Unearned revenue	15,786		16,126
Unrealized loss on investments	5,345		1,492
Other	66,667		55,518
Gross deferred tax assets	473,168		445,087
Valuation allowance	(181,846)		(166,571)
Net deferred tax assets	$	291,322	$	278,516
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries not indefinitely reinvested	$	(257,757)	$	(243,491)
Deferred profit	(18,111)		(15,718)
Depreciation and amortization	(439,685)		(515,643)
Total deferred tax liabilities	(715,553)		(774,852)
Total net deferred tax assets (liabilities)	$	(424,231)	$	(496,336)

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate was as follows: 

	Year ended June 30,
	2020		2019		2018
Federal statutory rate	21.0	%	21.0	%	28.1	%
State income taxes, net of federal benefit	0.2	%	0.5	%	0.5	%
Effect of foreign operations taxed at various rates	(12.1)	%	(10.5)	%	(11.0)	%
Tax Cuts and Jobs Act of 2017 - Transition tax and deferred tax effects	—	%	(1.5)	%	30.3	%
Global intangible low-taxed income	3.0	%	3.5	%	—	%
Foreign derived intangible income	(5.0)	%	(4.0)	%	—	%
Research and development tax credit	(1.8)	%	(1.8)	%	(1.4)	%
Net change in tax reserves	1.5	%	1.4	%	(0.4)	%
Domestic manufacturing benefit	—	%	—	%	(1.1)	%
Non-deductible impairment of goodwill	4.1	%	—	%	—	%
Effect of stock-based compensation	(0.3)	%	0.4	%	(0.1)	%
Restructuring	(2.6)	%	—	%	—	%
Other	(0.3)	%	0.4	%	—	%
Effective income tax rate	7.7	%	9.4	%	44.9	%

Summary of Income Tax Contingencies

A reconciliation of gross unrecognized tax benefits was as follows: 

	Year ended June 30,
(In thousands)	2020		2019		2018
Unrecognized tax benefits at the beginning of the year	$	146,426	$	63,994	$	68,439
Increases for tax positions from acquisitions	—		60,753		—
Increases for tax positions taken in prior years	6,826		13,001		4,642
Decreases for tax positions taken in prior years	(518)		(1,304)		(6,045)
Increases for tax positions taken in current year	34,278		26,178		16,812
Decreases for settlements with taxing authorities	—		—		(9,666)
Decreases for lapsing of statutes of limitations	(14,569)		(16,196)		(10,188)
Unrecognized tax benefits at the end of the year	$	172,443	$	146,426	$	63,994