Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

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INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2024
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) 2024 2023 2022
Domestic income before income taxes $ 1,997,090  $ 2,017,338  $ 1,909,699 
Foreign income before income taxes 1,192,942  1,771,852  1,579,538 
Total income before income taxes $ 3,190,032  $ 3,789,190  $ 3,489,237 
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes was comprised of the following:
(In thousands) Year Ended June 30,
2024 2023 2022
Current:
Federal $ 395,876  $ 553,197  $ 341,614 
State 10,737  14,804  14,149 
Foreign 160,401  188,991  165,194 
567,014  756,992  520,957 
Deferred:
Federal (110,686) (228,414) 11,564 
State (2,770) (4,295) (311)
Foreign (25,422) (122,444) (365,033)
(138,878) (355,153) (353,780)
Provision for income taxes $ 428,136  $ 401,839  $ 167,177 
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,
2024 2023
Deferred tax assets:
Capitalized R&D expenses $ 328,061  $ 201,228 
Tax credits and net operating losses 311,026  271,500 
Depreciation and amortization 151,371  73,691 
Inventory reserves 121,238  103,646 
Employee benefits accrual 95,461  92,696 
Non-deductible reserves 53,668  52,147 
Unearned revenue 25,532  16,668 
SBC 15,375  12,710 
Other 12,785  35,360 
Gross deferred tax assets 1,114,517  859,646 
Valuation allowance (289,534) (259,172)
Net deferred tax assets $ 824,983  $ 600,474 
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries not indefinitely reinvested $ (315,231) $ (279,677)
Deferred profit (70,204) (23,149)
Unrealized gain on investments (10,949) (9,994)
Total deferred tax liabilities (396,384) (312,820)
Total net deferred tax assets $ 428,599  $ 287,654 
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,
  2024 2023 2022
Federal statutory rate 21.0  % 21.0  % 21.0  %
GILTI 3.7  % 3.4  % 2.0  %
Goodwill impairment 1.7  % —  % —  %
Net change in tax reserves 1.1  % —  % 2.0  %
State income taxes, net of federal benefit 0.3  % 0.2  % 0.3  %
Restructuring —  % —  % (11.2) %
Effect of SBC —  % 0.1  % (0.2) %
R&D tax credit (1.6) % (1.5) % (1.1) %
Foreign derived intangible income (5.9) % (5.7) % (4.0) %
Effect of foreign operations taxed at various rates (6.6) % (7.1) % (4.2) %
Other (0.3) % 0.2  % 0.2  %
Effective income tax rate 13.4  % 10.6  % 4.8  %
Schedule of Income Tax Contingencies
A reconciliation of gross unrecognized tax benefits was as follows:
  Year Ended June 30,
(In thousands) 2024 2023 2022
Unrecognized tax benefits at the beginning of the year $ 213,092  $ 217,927  $ 149,642 
Increases for tax positions taken in current year 40,209  44,590  49,311 
Increases for tax positions taken in prior years 23,291  434  20,917 
Decreases for settlements with taxing authorities —  (45,042) — 
Decreases for tax positions taken in prior years (26,766) (3,929) (267)
Decreases for lapsing of statutes of limitations (4,119) (888) (1,676)
Unrecognized tax benefits at the end of the year $ 245,707  $ 213,092  $ 217,927