Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.23.2
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Taxes, Domestic and Foreign
The components of income before income taxes were as follows: 
  Year Ended June 30,
(In thousands) 2023 2022 2021
Domestic income before income taxes $ 2,017,338  $ 1,909,699  $ 1,251,820 
Foreign income before income taxes 1,771,852  1,579,538  1,108,634 
Total income before income taxes $ 3,789,190  $ 3,489,237  $ 2,360,454 
Schedule of Components of Income Tax Expense (Benefit) The provision for income taxes was comprised of the following:
(In thousands) Year Ended June 30,
2023 2022 2021
Current:
Federal $ 553,197  $ 341,614  $ 201,413 
State 14,804  14,149  6,164 
Foreign 188,991  165,194  121,146 
756,992  520,957  328,723 
Deferred:
Federal (228,414) 11,564  (31,989)
State (4,295) (311) (1,155)
Foreign (122,444) (365,033) (12,478)
(355,153) (353,780) (45,622)
Provision for income taxes $ 401,839  $ 167,177  $ 283,101 
Schedule of Deferred Tax Assets and Liabilities
The significant components of deferred income tax assets and liabilities were as follows:
(In thousands) As of June 30,
2023 2022
Deferred tax assets:
Tax credits and net operating losses $ 271,500  $ 268,416 
Capitalized R&D expenses 201,228  — 
Inventory reserves 103,646  86,059 
Employee benefits accrual 92,696  78,021 
Depreciation and amortization 73,691  1,760 
Non-deductible reserves 52,147  53,426 
Unearned revenue 16,668  11,843 
SBC 12,710  9,864 
Other 35,360  56,911 
Gross deferred tax assets 859,646  566,300 
Valuation allowance (259,172) (244,429)
Net deferred tax assets $ 600,474  $ 321,871 
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries not indefinitely reinvested $ (279,677) $ (358,374)
Deferred profit (23,149) (30,268)
Unrealized gain on investments (9,994) (12,993)
Total deferred tax liabilities (312,820) (401,635)
Total net deferred tax liabilities $ 287,654  $ (79,764)
Schedule of Effective Income Tax Rate Reconciliation The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate was as follows:
  Year ended June 30,
  2023 2022 2021
Federal statutory rate 21.0  % 21.0  % 21.0  %
GILTI 3.4  % 2.0  % 2.6  %
State income taxes, net of federal benefit 0.2  % 0.3  % 0.2  %
Effect of SBC 0.1  % (0.2) % (0.3) %
Net change in tax reserves —  % 2.0  % (1.1) %
Tax rate change on deferred tax liability on purchased intangibles —  % —  % 1.7  %
Restructuring —  % (11.2) % —  %
R&D tax credit (1.5) % (1.1) % (1.1) %
Foreign derived intangible income (5.7) % (4.0) % (4.3) %
Effect of foreign operations taxed at various rates (7.1) % (4.2) % (6.6) %
Other 0.2  % 0.2  % (0.1) %
Effective income tax rate 10.6  % 4.8  % 12.0  %
Schedule of Income Tax Contingencies
A reconciliation of gross unrecognized tax benefits was as follows: 
  Year Ended June 30,
(In thousands) 2023 2022 2021
Unrecognized tax benefits at the beginning of the year $ 217,927  $ 149,642  $ 172,443 
Increases for tax positions taken in current year 44,590  49,311  31,113 
Increases for tax positions taken in prior years 434  20,917  6,557 
Decreases for settlements with taxing authorities (45,042) —  (28,651)
Decreases for tax positions taken in prior years (3,929) (267) (19,360)
Decreases for lapsing of statutes of limitations (888) (1,676) (12,460)
Unrecognized tax benefits at the end of the year $ 213,092  $ 217,927  $ 149,642