Income Taxes (Tables)

12 Months Ended

Jun. 24, 2018

Components of Income (Loss) Before Income Taxes

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



	Year Ended
	June 24, 2018		June 25, 2017		June 26, 2016
	(in thousands)
United States	$	128,190	$	7,553	$	(113,607	)
Foreign	3,023,599		1,804,120		1,073,724
	$	3,151,789	$	1,811,673	$	960,117

Components of Provision (Benefit) for Income Taxes

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



	Year Ended
	June 24, 2018			June 25, 2017			June 26, 2016
	(in thousands)
Federal:
Current	$	630,148		$	(70,858	)	$	1,426
Deferred	12,871			99,700			(38,616		)
	643,019			28,842			(37,190		)
State:
Current	5,348			(963		)	2,892
Deferred	(3,273		)	(2,246		)	(7,600		)
	2,075			(3,209		)	(4,708		)
Foreign:
Current	132,566			85,479			90,752
Deferred	(6,552		)	2,798			(2,786		)
	126,014			88,277			87,966
Total provision for income taxes	$	771,108		$	113,910		$	46,068

Components of Net Deferred Tax Assets and Liabilities

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



	June 24, 2018			June 25, 2017
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	206,073		$	175,595
Allowances and reserves	118,559			170,752
Equity-based compensation	16,189			25,828
Inventory valuation differences	14,021			19,602
Prepaid cost sharing	65,644			133,831
Other	16,514			20,175
Gross deferred tax assets	437,000			545,783
Valuation allowance	(199,839		)	(114,011		)
Net deferred tax assets	237,161			431,772
Deferred tax liabilities:
Intangible assets	(21,558		)	(30,944		)
Convertible debt	(60,252		)	(153,047		)
Capital assets	(61,429		)	(72,727		)
Amortization of goodwill	(10,738		)	(15,582		)
Unremitted earnings of foreign subsidiaries	(6,656		)	(302,663		)
Other	(7,955		)	(9,844		)
Gross deferred tax liabilities	(168,588		)	(584,807		)
Net deferred tax assets (liabilities)	$	68,573		$	(153,035	)

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 (28.27% in fiscal year 2018 and 35% in fiscal years 2017 and 2016) to actual income tax expense (benefit) is as follows:



	Year Ended
	June 24, 2018			June 25, 2017			June 26, 2016
	(in thousands)
Income tax expense computed at federal statutory rate	$	891,011		$	634,086		$	336,041
State income taxes, net of federal tax benefit	(50,585		)	(11,973		)	(14,070		)
Foreign income taxed at different rates	(939,808		)	(352,860		)	(265,123		)
Settlements and reductions in uncertain tax positions	(33,367		)	(144,519		)	—
Tax credits	(69,301		)	(37,713		)	(48,277		)
State valuation allowance, net of federal tax benefit	57,302			12,070			17,948
Equity-based compensation	(35,875		)	13,187			12,366
Other permanent differences and miscellaneous items	43,214			1,632			7,183
U.S. tax reform impacts	908,517			—			—
	$	771,108		$	113,910		$	46,068

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 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
Settlements and effective settlements with tax authorities	(693		)
Lapse of statute of limitations	(88,837		)
Increases in balances related to tax positions taken during prior periods	2,044
Decreases in balances related to tax positions taken during prior periods	(1,320		)
Increases in balances related to tax positions taken during current period	54,772
Balance as of June 24, 2018	$	305,413