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Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2018
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Taxes, Domestic and Foreign | The components of income before income taxes are as follows:
| Year ended June 30,
(In thousands) | 2018 |  | 2017 |  | 2016
Domestic income before income taxes | $ | 716,015 |  |  | $ | 615,906 |  |  | $ | 417,803 |
Foreign income before income taxes | 739,916 |  |  | 557,340 |  |  | 440,389 |
Total income before income taxes | $ | 1,455,931 |  |  | $ | 1,173,246 |  |  | $ | 858,192 |
Schedule of Components of Income Tax Expense (Benefit) |
(In thousands) | Year ended June 30,
2018 |  | 2017 |  | 2016
Current: |  |  |  |  |
Federal | $ | 504,758 |  |  | $ | 200,831 |  |  | $ | 94,088 |
State | 6,422 |  |  | 4,660 |  |  | 6,123 |
Foreign | 41,414 |  |  | 38,208 |  |  | 37,680 |
| 552,594 |  |  | 243,699 |  |  | 137,891 |
Deferred: |  |  |  |  |
Federal | 98,702 |  |  | 444 |  |  | 15,645 |
State | 1,526 |  |  | 2,852 |  |  | 3,583 |
Foreign | 844 |  |  | 175 |  |  | (3,349 | )
| 101,072 |  |  | 3,471 |  |  | 15,879 |
Provision for income taxes | $ | 653,666 |  |  | $ | 247,170 |  |  | $ | 153,770 |
Schedule of Deferred Tax Assets and Liabilities | The significant components of deferred income tax assets and liabilities are as follows:
(In thousands) | As of June 30,
2018 |  | 2017
Deferred tax assets: |  |  |
Tax credits and net operating losses | $ | 171,701 |  |  | $ | 134,052 |
Employee benefits accrual | 64,707 |  |  | 106,637 |
Stock-based compensation | 8,902 |  |  | 15,252 |
Inventory reserves | 62,232 |  |  | 95,200 |
Non-deductible reserves | 29,841 |  |  | 43,140 |
Depreciation and amortization | 701 |  |  | 3,415 |
Unearned revenue | 11,104 |  |  | 15,757 |
Unrealized loss on investments | 956 |  |  | — |
Other | 25,602 |  |  | 26,538 |
Gross deferred tax assets | 375,746 |  |  | 439,991 |
Valuation allowance | (163,570 | ) |  | (120,708 | )
Net deferred tax assets | $ | 212,176 |  |  | $ | 319,283 |
Deferred tax liabilities: |  |  |
Unremitted earnings of foreign subsidiaries not indefinitely reinvested | $ | (7,146 | ) |  | $ | (13,213 | )
Deferred profit | (13,027 | ) |  | (13,657 | )
Unrealized gain on investments | — |  |  | (2,707 | )
Total deferred tax liabilities | (20,173 | ) |  | (29,577 | )
Total net deferred tax assets | $ | 192,003 |  |  | $ | 289,706 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the United States federal statutory income tax rate to KLA-Tencor’s effective income tax rate is as follows:
| Year ended June 30,
| 2018 |  | 2017 |  | 2016
Federal statutory rate | 28.1 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal benefit | 0.5 | % |  | 0.4 | % |  | 0.9 | %
Effect of foreign operations taxed at various rates | (11.0 | )% |  | (12.2 | )% |  | (13.0 | )%
Tax Cuts and Jobs Act of 2017 | 30.3 | % |  | — | % |  | — | %
Research and development tax credit | (1.4 | )% |  | (1.1 | )% |  | (1.9 | )%
Net change in tax reserves | (0.4 | )% |  | 1.3 | % |  | (2.2 | )%
Domestic manufacturing benefit | (1.1 | )% |  | (1.5 | )% |  | (1.5 | )%
Effect of stock-based compensation | (0.1 | )% |  | (0.2 | )% |  | 0.3 | %
Other | — | % |  | (0.6 | )% |  | 0.3 | %
Effective income tax rate | 44.9 | % |  | 21.1 | % |  | 17.9 | %
Summary of Income Tax Contingencies | A reconciliation of gross unrecognized tax benefits is as follows:
| Year ended June 30,
(In thousands) | 2018 |  | 2017 |  | 2016
Unrecognized tax benefits at the beginning of the year | $ | 68,439 |  |  | $ | 50,365 |  |  | $ | 69,018 |
Increases for tax positions taken in prior years | 4,642 |  |  | 6,788 |  |  | 4,245 |
Decreases for tax positions taken in prior years | (6,045 | ) |  | (246 | ) |  | (1,209 | )
Increases for tax positions taken in current year | 16,812 |  |  | 14,696 |  |  | 13,636 |
Decreases for settlements with taxing authorities | (9,666 | ) |  | — |  |  | (8,762 | )
Decreases for lapsing of statutes of limitations | (10,188 | ) |  | (3,164 | ) |  | (26,563 | )
Unrecognized tax benefits at the end of the year | $ | 63,994 |  |  | $ | 68,439 |  |  | $ | 50,365 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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