Annual report [Section 13 and 15(d), not S-K Item 405]

INCOME TAXES (Tables)

v3.25.2
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2025
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) 2025 2024 2023
Domestic income before income taxes $ 3,070,097  $ 1,997,090  $ 2,017,338 
Foreign income before income taxes 1,574,351  1,192,942  1,771,852 
Total income before income taxes $ 4,644,448  $ 3,190,032  $ 3,789,190 
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes was comprised of the following:
(In thousands) Year Ended June 30,
2025 2024 2023
Current:
Federal $ 624,002  $ 395,876  $ 553,197 
State 21,161  10,737  14,804 
Foreign 182,448  160,401  188,991 
827,611  567,014  756,992 
Deferred:
Federal (222,907) (110,686) (228,414)
State (5,433) (2,770) (4,295)
Foreign (16,466) (25,422) (122,444)
(244,806) (138,878) (355,153)
Provision for income taxes $ 582,805  $ 428,136  $ 401,839 
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,
2025 2024
Deferred tax assets:
Capitalized R&D expenses $ 447,043  $ 328,061 
Tax credits and net operating losses 327,618  311,026 
Depreciation and amortization 190,256  151,371 
Inventory reserves 135,121  121,238 
Employee benefits accrual 106,746  95,461 
Non-deductible reserves 69,790  53,668 
Unearned revenue 48,372  25,532 
SBC 18,835  15,375 
Other 43,843  12,785 
Gross deferred tax assets 1,387,624  1,114,517 
Valuation allowance (310,599) (289,534)
Net deferred tax assets $ 1,077,025  $ 824,983 
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries not indefinitely reinvested $ (360,544) $ (315,231)
Deferred profit (41,378) (70,204)
Unrealized gain on investments (16,278) (10,949)
Total deferred tax liabilities (418,200) (396,384)
Total net deferred tax assets $ 658,825  $ 428,599 
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,
  2025 2024 2023
Federal statutory rate 21.0  % 21.0  % 21.0  %
GILTI 2.9  % 3.7  % 3.4  %
Goodwill impairment 1.1  % 1.7  % —  %
Net change in tax reserves 0.3  % 1.1  % —  %
State income taxes, net of federal benefit 0.3  % 0.3  % 0.2  %
Effect of SBC —  % —  % 0.1  %
Foreign derived intangible income (6.6) % (5.9) % (5.7) %
Effect of foreign operations taxed at various rates (5.1) % (6.6) % (7.1) %
R&D tax credit (1.1) % (1.6) % (1.5) %
Other (0.3) % (0.3) % 0.2  %
Effective income tax rate 12.5  % 13.4  % 10.6  %
Reconciliation of Gross Unrecognized Tax Benefits
A reconciliation of gross unrecognized tax benefits was as follows:
  Year Ended June 30,
(In thousands) 2025 2024 2023
Unrecognized tax benefits at the beginning of the year $ 245,707  $ 213,092  $ 217,927 
Increases for tax positions taken in current year 35,429  40,209  44,590 
Increases for tax positions taken in prior years 10,862  23,291  434 
Decreases for lapsing of statutes of limitations (17,100) (4,119) (888)
Decreases for tax positions taken in prior years (11,607) (26,766) (3,929)
Decreases for settlements with taxing authorities (4,687) —  (45,042)
Unrecognized tax benefits at the end of the year $ 258,604  $ 245,707  $ 213,092