Income Taxes (Tables)

12 Months Ended

Jun. 25, 2023

Schedule of Components of Income (Loss) Before Income Taxes

The components of income before income taxes were as follows:


	Year Ended
	June 25, 2023		June 26, 2022		June 27, 2021
	(in thousands)
United States	$	151,759	$	87,933	$	120,161
Foreign	4,957,451		5,105,181		4,250,643
	$	5,109,210	$	5,193,114	$	4,370,804

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 25, 2023		June 26, 2022		June 27, 2021
	(in thousands)
Federal:
Current	$	541,416	$	620,344	$	437,525
Deferred	(136,178)		(226,895)		(139,531)
	405,238		393,449		297,994
State:
Current	32,082		20,759		13,560
Deferred	(2,813)		(19,096)		(8,324)
	29,269		1,663		5,236
Foreign:
Current	196,842		204,163		162,738
Deferred	(33,070)		(11,447)		(3,622)
	163,772		192,716		159,116
Total provision for income taxes	$	598,279	$	587,828	$	462,346

The Company’s remaining obligation related to this arrangement as of June 25, 2023, were as follows:


Payments Due by Fiscal Year (1):	Transition Tax
	(in thousands)
2024	$	137,783
2025	183,710
2026	229,638



Total	$	551,131

(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 25, 2023		June 26, 2022
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	359,505	$	315,396
Allowances and reserves	192,374		194,410
Equity-based compensation	9,600		8,845
Inventory valuation differences	57,675		52,323

Outside basis differences of foreign subsidiaries	527,139		421,056
R&D capitalization	36,618		—
Operating lease liabilities	50,867		50,294
Finance lease assets	32,905		35,754
Intangible assets	4,108		889
Other	31,773		23,955
Gross deferred tax assets	1,302,564		1,102,922
Valuation allowance	(352,377)		(308,724)
Net deferred tax assets	950,187		794,198
Deferred tax liabilities:
Capital assets	(121,948)		(114,644)
Amortization of goodwill	(12,515)		(13,789)

Right-of-use assets	(50,867)		(50,294)
Finance lease liabilities	(50,534)		(52,379)
Other	(1,974)		(2,395)
Gross deferred tax liabilities	(237,838)		(233,501)
Net deferred tax assets	$	712,349	$	560,697

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 2023, 2022, and 2021) to actual income tax expense is as follows:


	Year Ended
	June 25, 2023		June 26, 2022		June 27, 2021
	(in thousands)
Income tax expense computed at federal statutory rate	$	1,072,934	$	1,096,692	$	917,869
State income taxes, net of federal tax benefit	(23,252)		(35,584)		(33,478)
Foreign income taxed at different rates	(430,314)		(407,989)		(365,886)
Settlements and reductions in uncertain tax positions	(28,968)		(51,227)		(13,613)
Tax credits	(103,019)		(96,440)		(86,709)
State valuation allowance, net of federal tax benefit	49,073		43,502		39,477
Equity-based compensation	15,816		(13,168)		(45,764)
Other permanent differences and miscellaneous items	46,009		52,042		50,450

	$	598,279	$	587,828	$	462,346

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 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
Settlements and effective settlements with tax authorities	(50,238)
Lapse of statute of limitations	(22,103)
Increases in balances related to tax positions taken during prior periods	5,841
Decreases in balances related to tax positions taken during prior periods	(4,316)
Increases in balances related to tax positions taken during current period	93,615
Balance as of June 25, 2023	$	640,172