Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.21.2
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2021
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) 2021 2020 2019
Domestic income before income taxes $ 1,251,820  $ 752,844  $ 545,401 
Foreign income before income taxes 1,108,634  563,867  750,830 
Total income before income taxes $ 2,360,454  $ 1,316,711  $ 1,296,231 
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes was comprised of the following: 
(In thousands) Year Ended June 30,
2021 2020 2019
Current:
Federal $ 201,413  $ 108,136  $ 82,460 
State 6,164  518  5,665 
Foreign 121,146  86,374  59,274 
328,723  195,028  147,399 
Deferred:
Federal (31,989) (26,743) 1,636 
State (1,155) (1,174) 2,118 
Foreign (12,478) (65,425) (29,939)
(45,622) (93,342) (26,185)
Provision for income taxes $ 283,101  $ 101,686  $ 121,214 
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,
2021 2020
Deferred tax assets:
Tax credits and net operating losses $ 237,480  $ 214,305 
Employee benefits accrual 82,055  67,729 
Stock-based compensation 7,284  8,871 
Inventory reserves 81,224  73,939 
Non-deductible reserves 36,267  20,526 
Unearned revenue 15,712  15,786 
Unrealized loss on investments 5,384  5,345 
Other 54,615  66,667 
Gross deferred tax assets 520,021  473,168 
Valuation allowance (204,433) (181,846)
Net deferred tax assets $ 315,588  $ 291,322 
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries not indefinitely reinvested $ (278,014) $ (257,757)
Deferred profit (10,044) (18,111)
Depreciation and amortization (407,692) (439,685)
Total deferred tax liabilities (695,750) (715,553)
Total net deferred tax assets (liabilities) $ (380,162) $ (424,231)
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,
  2021 2020 2019
Federal statutory rate 21.0  % 21.0  % 21.0  %
State income taxes, net of federal benefit 0.2  % 0.2  % 0.5  %
Effect of foreign operations taxed at various rates (6.6) % (12.1) % (10.5) %
Tax rate change on deferred tax liability on purchased intangibles 1.7  % —  % —  %
Tax Cuts and Jobs Act of 2017 - Transition tax and deferred tax effects —  % —  % (1.5) %
Global intangible low-taxed income 2.6  % 3.0  % 3.5  %
Foreign derived intangible income (4.3) % (5.0) % (4.0) %
Research and development tax credit (1.1) % (1.8) % (1.8) %
Net change in tax reserves (1.1) % 1.5  % 1.4  %
Non-deductible impairment of goodwill —  % 4.1  % —  %
Effect of stock-based compensation (0.3) % (0.3) % 0.4  %
Restructuring —  % (2.6) % —  %
Other (0.1) % (0.3) % 0.4  %
Effective income tax rate 12.0  % 7.7  % 9.4  %
Schedule of Income Tax Contingencies
A reconciliation of gross unrecognized tax benefits was as follows: 
  Year Ended June 30,
(In thousands) 2021 2020 2019
Unrecognized tax benefits at the beginning of the year $ 172,443  $ 146,426  $ 63,994 
Increases for tax positions from acquisitions —  —  60,753 
Increases for tax positions taken in prior years 6,557  6,826  13,001 
Decreases for tax positions taken in prior years (19,360) (518) (1,304)
Increases for tax positions taken in current year 31,113  34,278  26,178 
Decreases for settlements with taxing authorities (28,651) —  — 
Decreases for lapsing of statutes of limitations (12,460) (14,569) (16,196)
Unrecognized tax benefits at the end of the year $ 149,642  $ 172,443  $ 146,426