Income Taxes (Tables)

12 Months Ended

Jun. 25, 2017

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes were as follows:



	Year Ended
	June 25, 2017		June 26, 2016			June 28, 2015
	(in thousands)
United States	$	7,553	$	(113,607	)	$	72,728
Foreign	1,804,120		1,073,724			668,122
	$	1,811,673	$	960,117		$	740,850

Components of Provision (Benefit) for Income Taxes

Significant components of the provision for income taxes attributable to income before income taxes were as follows:



	Year Ended
	June 25, 2017			June 26, 2016			June 28, 2015
	(in thousands)
Federal:
Current	$	(70,858	)	$	1,426		$	16,795
Deferred	99,700			(38,616		)	12,115
	28,842			(37,190		)	28,910
State:
Current	(963		)	2,892			1,376
Deferred	(2,246		)	(7,600		)	158
	(3,209		)	(4,708		)	1,534
Foreign:
Current	85,479			90,752			61,551
Deferred	2,798			(2,786		)	(6,722		)
	88,277			87,966			54,829
Total provision for income taxes	$	113,910		$	46,068		$	85,273

Components of Net Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets and liabilities were as follows:



	June 25, 2017			June 26, 2016
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	175,595		$	176,767
Allowances and reserves	170,752			128,416
Equity-based compensation	25,828			29,414
Inventory valuation differences	19,602			17,178
Prepaid cost sharing	133,831			88,522
Other	20,175			24,540
Gross deferred tax assets	545,783			464,837
Valuation allowance	(114,011		)	(101,689		)
Net deferred tax assets	431,772			363,148
Deferred tax liabilities:
Intangible assets	(30,944		)	(46,774		)
Convertible debt	(153,047		)	(151,483		)
Capital assets	(72,727		)	(61,845		)
Amortization of goodwill	(15,582		)	(14,176		)
Unremitted earnings of foreign subsidiaries	(302,663		)	(146,459		)
Other	(9,844		)	(8,594		)
Gross deferred tax liabilities	(584,807		)	(429,331		)
Net deferred tax liabilities	$	(153,035	)	$	(66,183	)

Reconciliation of Income Tax Expense Provided at Federal Statutory Rate to Actual Income Tax Expense (Benefit)

A reconciliation of income tax expense provided at the federal statutory rate (35% in fiscal years 2017, 2016, and 2015) to actual income tax expense is as follows:



	Year Ended
	June 25, 2017			June 26, 2016			June 28, 2015
	(in thousands)
Income tax expense computed at federal statutory rate	$	634,086		$	336,041		$	259,297
State income taxes, net of federal tax benefit	(11,973		)	(14,070		)	(8,611		)
Foreign income taxed at different rates	(352,860		)	(265,123		)	(175,581		)
Settlements and reductions in uncertain tax positions	(144,519		)	—			—
Tax credits	(37,713		)	(48,277		)	(24,416		)
State valuation allowance, net of federal tax benefit	12,070			17,948			8,594
Equity-based compensation	13,187			12,366			28,845
Other permanent differences and miscellaneous items	1,632			7,183			(2,855		)
	$	113,910		$	46,068		$	85,273

Changes in Balance of Gross Unrecognized Tax Benefits

The aggregate changes in the balance of gross unrecognized tax benefits were as follows:




	(in thousands)
Balance as of June 29, 2014	$	352,112
Settlements and effective settlements with tax authorities	(2,108		)
Lapse of statute of limitations	(9,376		)
Increases in balances related to tax positions taken during prior periods	3,729
Decreases in balances related to tax positions taken during prior periods	(12,615		)
Increases in balances related to tax positions taken during current period	31,810
Balance as of June 28, 2015	363,552
Lapse of statute of limitations	(10,992		)
Increases in balances related to tax positions taken during prior periods	18,200
Decreases in balances related to tax positions taken during prior periods	(421		)
Increases in balances related to tax positions taken during current period	47,093
Balance as of June 26, 2016	417,432
Settlements and effective settlements with tax authorities	(6,691		)
Lapse of statute of limitations	(113,491		)
Increases in balances related to tax positions taken during prior periods	6,557
Decreases in balances related to tax positions taken during prior periods	(11,528		)
Increases in balances related to tax positions taken during current period	47,168
Balance as of June 25, 2017	$	339,447