Income Taxes (Tables)

12 Months Ended

Jun. 30, 2024

Schedule of Components of Income (Loss) Before Income Taxes

The components of income before income taxes were as follows:


	Year Ended
	June 30, 2024		June 25, 2023		June 26, 2022
	(in thousands)
United States	$	282,736	$	151,759	$	87,933
Foreign	4,077,486		4,957,451		5,105,181
	$	4,360,222	$	5,109,210	$	5,193,114

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 30, 2024		June 25, 2023		June 26, 2022
	(in thousands)
Federal:
Current	$	566,106	$	541,416	$	620,344
Deferred	(186,238)		(136,178)		(226,895)
	379,868		405,238		393,449
State:
Current	20,081		32,082		20,759
Deferred	(15,118)		(2,813)		(19,096)
	4,963		29,269		1,663
Foreign:
Current	143,595		196,842		204,163
Deferred	4,024		(33,070)		(11,447)
	147,619		163,772		192,716
Total provision for income taxes	$	532,450	$	598,279	$	587,828

The Company’s remaining obligation related to this arrangement as of June 30, 2024, were as follows:


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




Total	$	413,348

(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 30, 2024		June 25, 2023
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	396,036	$	359,505
Allowances and reserves	189,429		192,374
Equity-based compensation	9,981		9,600
Inventory valuation differences	64,135		57,675

Outside basis differences of foreign subsidiaries	680,598		527,139
R&D capitalization	75,196		36,618
Operating lease liabilities	57,972		50,867
Finance lease assets	—		32,905
Intangible assets	4,908		4,108
Other	37,878		31,773
Gross deferred tax assets	1,516,133		1,302,564
Valuation allowance	(389,315)		(352,377)
Net deferred tax assets	1,126,818		950,187
Deferred tax liabilities:
Capital assets	(142,963)		(121,948)
Amortization of goodwill	(11,287)		(12,515)

Right-of-use assets	(57,337)		(50,867)
Finance lease liabilities	—		(50,534)
Other	(6,596)		(1,974)
Gross deferred tax liabilities	(218,183)		(237,838)
Net deferred tax assets	$	908,635	$	712,349

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 2024, 2023, and 2022) to actual income tax expense is as follows:


	Year Ended
	June 30, 2024		June 25, 2023		June 26, 2022
	(in thousands)
Income tax expense computed at federal statutory rate	$	915,647	$	1,072,934	$	1,096,692
State income taxes, net of federal tax benefit	(37,965)		(23,252)		(35,584)
Foreign income taxed at different rates	(313,795)		(430,314)		(407,989)
Settlements and reductions in uncertain tax positions	(18,947)		(28,968)		(51,227)
Tax credits	(125,523)		(103,019)		(96,440)
State valuation allowance, net of federal tax benefit	44,916		49,073		43,502
Equity-based compensation	(11,296)		15,816		(13,168)
Increases in uncertain tax positions	62,333		34,661		35,148
Other permanent differences and miscellaneous items	17,080		11,348		16,894

	$	532,450	$	598,279	$	587,828

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 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
Settlements and effective settlements with tax authorities	(9,548)
Lapse of statute of limitations	(10,114)

Decreases in balances related to tax positions taken during prior periods	(12,326)
Increases in balances related to tax positions taken during current period	115,600
Balance as of June 30, 2024	$	723,784