Income Taxes (Tables)

12 Months Ended

Jun. 27, 2021

Income Tax Disclosure [Abstract]

Components of Income (Loss) Before Income Taxes

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

	Year Ended
	June 27, 2021		June 28, 2020		June 30, 2019
	(in thousands)
United States	$	120,161	$	44,739	$	(59,876)
Foreign	4,250,643		2,530,239		2,506,447
	$	4,370,804	$	2,574,978	$	2,446,571

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 27, 2021		June 28, 2020		June 30, 2019
	(in thousands)
Federal:
Current	$	437,525	$	216,513	$	143,845
Deferred	(139,531)		(18,458)		(10,722)
	297,994		198,055		133,123
State:
Current	13,560		4,724		5,994
Deferred	(8,324)		6,524		4,944
	5,236		11,248		10,938
Foreign:
Current	162,738		119,766		110,283
Deferred	(3,622)		(5,844)		797
	159,116		113,922		111,080
Total provision for income taxes	$	462,346	$	323,225	$	255,141

Components of Net Deferred Tax Assets and Liabilities

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

	June 27, 2021		June 28, 2020
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	281,022	$	249,874
Allowances and reserves	165,335		119,974
Equity-based compensation	7,322		7,167
Inventory valuation differences	28,877		26,069
Outside basis differences of foreign subsidiaries	193,734		105,159
Operating lease liabilities	37,562		40,157
Other	22,575		26,361
Gross deferred tax assets	736,427		574,761
Valuation allowance	(277,133)		(244,973)
Net deferred tax assets	459,294		329,788
Deferred tax liabilities:
Intangible assets	(3,113)		(6,442)
Convertible debt	—		(24,530)
Capital assets	(97,602)		(105,508)
Amortization of goodwill	(13,161)		(12,256)
Right-of-use assets	(37,562)		(40,157)
Other	(262)		(7,509)
Gross deferred tax liabilities	(151,700)		(196,402)
Net deferred tax assets	$	307,594	$	133,386

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

A reconciliation of income tax expense provided at the federal statutory rate (21% in fiscal years 2021, 2020, and 2019) to actual income tax expense is as follows: 

	Year Ended
	June 27, 2021		June 28, 2020		June 30, 2019
	(in thousands)
Income tax expense computed at federal statutory rate	$	917,869	$	540,745	$	513,780
State income taxes, net of federal tax benefit	(33,478)		(28,046)		(17,565)
Foreign income taxed at different rates	(365,886)		(146,023)		(260,344)
Settlements and reductions in uncertain tax positions	(13,613)		(12,854)		(31,291)
Tax credits	(86,709)		(88,762)		(71,779)
State valuation allowance, net of federal tax benefit	39,477		30,923		26,742
Equity-based compensation	(45,764)		(23,248)		(7,566)
Other permanent differences and miscellaneous items	50,450		50,490		39,251
U.S. tax reform impacts	—		—		63,913
	$	462,346	$	323,225	$	255,141

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 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
Settlements and effective settlements with tax authorities	(1,443)
Lapse of statute of limitations	(8,456)
Increases in balances related to tax positions taken during prior periods	15,986
Decreases in balances related to tax positions taken during prior periods	(2,746)
Increases in balances related to tax positions taken during current period	86,735
Balance as of June 27, 2021	$	566,771