Income Taxes (Tables)

12 Months Ended

Jun. 28, 2020

Components of Income (Loss) Before Income Taxes

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



	Year Ended
	June 28, 2020		June 30, 2019			June 24, 2018
	(in thousands)
United States	$	44,739	$	(59,876	)	$	128,190
Foreign	2,530,239		2,506,447			3,023,599
	$	2,574,978	$	2,446,571		$	3,151,789

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 28, 2020			June 30, 2019			June 24, 2018
	(in thousands)
Federal:
Current	$	216,513		$	143,845		$	630,148
Deferred	(18,458		)	(10,722		)	12,871
	198,055			133,123			643,019
State:
Current	4,724			5,994			5,348
Deferred	6,524			4,944			(3,273		)
	11,248			10,938			2,075
Foreign:
Current	119,766			110,283			132,566
Deferred	(5,844		)	797			(6,552		)
	113,922			111,080			126,014
Total provision for income taxes	$	323,225		$	255,141		$	771,108

Components of Net Deferred Tax Assets and Liabilities

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



	June 28, 2020			June 30, 2019
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	249,874		$	231,390
Allowances and reserves	119,974			97,671
Equity-based compensation	7,167			14,661
Inventory valuation differences	26,069			18,516
Prepaid cost sharing	—			74,139
Outside basis differences of foreign subsidiaries	105,159			16,260
Operating lease liabilities	40,157			—
Other	26,361			17,972
Gross deferred tax assets	574,761			470,609
Valuation allowance	(244,973		)	(226,928		)
Net deferred tax assets	329,788			243,681
Deferred tax liabilities:
Intangible assets	(6,442		)	(9,883		)
Convertible debt	(24,530		)	(46,993		)
Capital assets	(105,508		)	(83,298		)
Amortization of goodwill	(12,256		)	(11,299		)
Right-of-use assets	(40,157		)	—
Other	(7,509		)	(8,752		)
Gross deferred tax liabilities	(196,402		)	(160,225		)
Net deferred tax assets	$	133,386		$	83,456

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 (21% in fiscal year 2020 and fiscal year 2019, and 28.27% in fiscal year 2018) to actual income tax expense is as follows:



	Year Ended
	June 28, 2020			June 30, 2019			June 24, 2018
	(in thousands)
Income tax expense computed at federal statutory rate	$	540,745		$	513,780		$	891,011
State income taxes, net of federal tax benefit	(28,046		)	(17,565		)	(50,585		)
Foreign income taxed at different rates	(146,023		)	(260,344		)	(939,808		)
Settlements and reductions in uncertain tax positions	(12,854		)	(31,291		)	(33,367		)
Tax credits	(88,762		)	(71,779		)	(69,301		)
State valuation allowance, net of federal tax benefit	30,923			26,742			57,302
Equity-based compensation	(23,248		)	(7,566		)	(35,875		)
Other permanent differences and miscellaneous items	50,490			39,251			43,214
U.S. tax reform impacts	—			63,913			908,517
	$	323,225		$	255,141		$	771,108

Changes in Balance of Gross Unrecognized Tax Benefits

The aggregate changes in the balance of gross uncertain tax positions were as follows:




	(in thousands)
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
Settlements and effective settlements with tax authorities	(3,705		)
Lapse of statute of limitations	(28,176		)
Increases in balances related to tax positions taken during prior periods	78,927
Decreases in balances related to tax positions taken during prior periods	(1,577		)
Increases in balances related to tax positions taken during current period	69,890
Balance as of June 30, 2019	420,772
Settlements and effective settlements with tax authorities	(1,836		)
Lapse of statute of limitations	(8,026		)
Increases in balances related to tax positions taken during prior periods	3,206
Decreases in balances related to tax positions taken during prior periods	(3,989		)
Increases in balances related to tax positions taken during current period	66,568
Balance as of June 28, 2020	$	476,695