INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2022

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)	2022		2021		2020
Domestic income before income taxes	$	1,909,699	$	1,251,820	$	752,844
Foreign income before income taxes	1,579,538		1,108,634		563,867
Total income before income taxes	$	3,489,237	$	2,360,454	$	1,316,711

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes was comprised of the following:

(In thousands)	Year Ended June 30,
	2022		2021		2020
Current:
Federal	$	341,614	$	201,413	$	108,136
State	14,149		6,164		518
Foreign	165,194		121,146		86,374
	520,957		328,723		195,028
Deferred:
Federal	11,564		(31,989)		(26,743)
State	(311)		(1,155)		(1,174)
Foreign	(365,033)		(12,478)		(65,425)
	(353,780)		(45,622)		(93,342)
Provision for income taxes	$	167,177	$	283,101	$	101,686

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,
	2022		2021
Deferred tax assets:
Tax credits and net operating losses	$	268,416	$	237,480
Inventory reserves	86,059		81,224
Employee benefits accrual	78,021		82,055
Non-deductible reserves	53,426		36,267
Unearned revenue	11,843		15,712
SBC	9,864		7,284
Depreciation and amortization	1,760		—
Unrealized loss on investments	—		5,384
Other	56,911		54,615
Gross deferred tax assets	566,300		520,021
Valuation allowance	(244,429)		(204,433)
Net deferred tax assets	$	321,871	$	315,588
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries not indefinitely reinvested	$	(358,374)	$	(278,014)
Deferred profit	(30,268)		(10,044)
Unrealized gain on investments	(12,993)		—
Depreciation and amortization	—		(407,692)
Total deferred tax liabilities	(401,635)		(695,750)
Total net deferred tax liabilities	$	(79,764)	$	(380,162)

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,
	2022		2021		2020
Federal statutory rate	21.0	%	21.0	%	21.0	%
GILTI	2.0	%	2.6	%	3.0	%
Net change in tax reserves	2.0	%	(1.1)	%	1.5	%
State income taxes, net of federal benefit	0.3	%	0.2	%	0.2	%
Tax rate change on deferred tax liability on purchased intangibles	—	%	1.7	%	—	%
Non-deductible impairment of goodwill	—	%	—	%	4.1	%
Effect of SBC	(0.2)	%	(0.3)	%	(0.3)	%
R&D tax credit	(1.1)	%	(1.1)	%	(1.8)	%
Foreign derived intangible income	(4.0)	%	(4.3)	%	(5.0)	%
Effect of foreign operations taxed at various rates	(4.2)	%	(6.6)	%	(12.1)	%
Restructuring	(11.2)	%	—	%	(2.6)	%
Other	0.2	%	(0.1)	%	(0.3)	%
Effective income tax rate	4.8	%	12.0	%	7.7	%

Schedule of Income Tax Contingencies

A reconciliation of gross unrecognized tax benefits was as follows: 

	Year Ended June 30,
(In thousands)	2022		2021		2020
Unrecognized tax benefits at the beginning of the year	$	149,642	$	172,443	$	146,426
Increases for tax positions taken in current year	49,311		31,113		34,278
Increases for tax positions taken in prior years	20,917		6,557		6,826
Decreases for settlements with taxing authorities	—		(28,651)		—
Decreases for tax positions taken in prior years	(267)		(19,360)		(518)
Decreases for lapsing of statutes of limitations	(1,676)		(12,460)		(14,569)
Unrecognized tax benefits at the end of the year	$	217,927	$	149,642	$	172,443