Income Taxes (Tables)

12 Months Ended

Jun. 26, 2022

Schedule of Components of Income (Loss) Before Income Taxes

The components of income before income taxes were as follows:


	Year Ended
	June 26, 2022		June 27, 2021		June 28, 2020
	(in thousands)
United States	$	87,933	$	120,161	$	44,739
Foreign	5,105,181		4,250,643		2,530,239
	$	5,193,114	$	4,370,804	$	2,574,978

Schedule of 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 26, 2022		June 27, 2021		June 28, 2020
	(in thousands)
Federal:
Current	$	620,344	$	437,525	$	216,513
Deferred	(226,895)		(139,531)		(18,458)
	393,449		297,994		198,055
State:
Current	20,759		13,560		4,724
Deferred	(19,096)		(8,324)		6,524
	1,663		5,236		11,248
Foreign:
Current	204,163		162,738		119,766
Deferred	(11,447)		(3,622)		(5,844)
	192,716		159,116		113,922
Total provision for income taxes	$	587,828	$	462,346	$	323,225

The Company’s remaining obligation related to this arrangement as of June 26, 2022, were as follows:


Payments Due by Fiscal Year (1):	Transition Tax
	(in thousands)
2023	$	69,469
2024	130,254
2025	173,672
2026	217,090


Total	$	590,485

(1) The Company may choose to apply existing tax credits, thereby reducing the actual cash payment.

Schedule of Components of Net Deferred Tax Assets and Liabilities

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


	June 26, 2022		June 27, 2021
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	315,396	$	281,022
Allowances and reserves	194,410		165,335
Equity-based compensation	8,845		7,322
Inventory valuation differences	52,323		28,877

Outside basis differences of foreign subsidiaries	421,056		193,734
Operating lease liabilities	50,294		37,562
Finance lease assets	35,754		35,600
Intangible assets	889		—
Other	23,955		22,575
Gross deferred tax assets	1,102,922		772,027
Valuation allowance	(308,724)		(277,133)
Net deferred tax assets	794,198		494,894
Deferred tax liabilities:
Intangible assets	—		(3,113)
Capital assets	(114,644)		(81,412)
Amortization of goodwill	(13,789)		(13,161)

Right-of-use assets	(50,294)		(37,562)
Finance lease liabilities	(52,379)		(50,683)
Other	(2,395)		(1,369)
Gross deferred tax liabilities	(233,501)		(187,300)
Net deferred tax assets	$	560,697	$	307,594

Schedule of 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 2022, 2021, and 2020) to actual income tax expense is as follows:


	Year Ended
	June 26, 2022		June 27, 2021		June 28, 2020
	(in thousands)
Income tax expense computed at federal statutory rate	$	1,096,692	$	917,869	$	540,745
State income taxes, net of federal tax benefit	(35,584)		(33,478)		(28,046)
Foreign income taxed at different rates	(407,989)		(365,886)		(146,023)
Settlements and reductions in uncertain tax positions	(51,227)		(13,613)		(12,854)
Tax credits	(96,440)		(86,709)		(88,762)
State valuation allowance, net of federal tax benefit	43,502		39,477		30,923
Equity-based compensation	(13,168)		(45,764)		(23,248)
Other permanent differences and miscellaneous items	52,042		50,450		50,490

	$	587,828	$	462,346	$	323,225

Schedule of 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 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
Settlements and effective settlements with tax authorities	(14,440)
Lapse of statute of limitations	(8,021)
Increases in balances related to tax positions taken during prior periods	6,468
Decreases in balances related to tax positions taken during prior periods	(28,376)
Increases in balances related to tax positions taken during current period	94,971
Balance as of June 26, 2022	$	617,373