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INCOME TAXES (Tables) | 12 Months Ended
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Jun. 30, 2022
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) | 2022 |  | 2021 |  | 2020
Domestic income before income taxes | $ | 1,909,699 |  |  | $ | 1,251,820 |  |  | $ | 752,844 |
Foreign income before income taxes | 1,579,538 |  |  | 1,108,634 |  |  | 563,867 |
Total income before income taxes | $ | 3,489,237 |  |  | $ | 2,360,454 |  |  | $ | 1,316,711 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes was comprised of the following:
(In thousands) | Year Ended June 30,
2022 |  | 2021 |  | 2020
Current: |  |  |  |  |
Federal | $ | 341,614 |  |  | $ | 201,413 |  |  | $ | 108,136 |
State | 14,149 |  |  | 6,164 |  |  | 518 |
Foreign | 165,194 |  |  | 121,146 |  |  | 86,374 |
| 520,957 |  |  | 328,723 |  |  | 195,028 |
Deferred: |  |  |  |  |
Federal | 11,564 |  |  | (31,989) |  |  | (26,743) |
State | (311) |  |  | (1,155) |  |  | (1,174) |
Foreign | (365,033) |  |  | (12,478) |  |  | (65,425) |
| (353,780) |  |  | (45,622) |  |  | (93,342) |
Provision for income taxes | $ | 167,177 |  |  | $ | 283,101 |  |  | $ | 101,686 |
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,
2022 |  | 2021
Deferred tax assets: |  |  |
Tax credits and net operating losses | $ | 268,416 |  |  | $ | 237,480 |
Inventory reserves | 86,059 |  |  | 81,224 |
Employee benefits accrual | 78,021 |  |  | 82,055 |
Non-deductible reserves | 53,426 |  |  | 36,267 |
Unearned revenue | 11,843 |  |  | 15,712 |
SBC | 9,864 |  |  | 7,284 |
Depreciation and amortization | 1,760 |  |  | — |
Unrealized loss on investments | — |  |  | 5,384 |
Other | 56,911 |  |  | 54,615 |
Gross deferred tax assets | 566,300 |  |  | 520,021 |
Valuation allowance | (244,429) |  |  | (204,433) |
Net deferred tax assets | $ | 321,871 |  |  | $ | 315,588 |
Deferred tax liabilities: |  |  |
Unremitted earnings of foreign subsidiaries not indefinitely reinvested | $ | (358,374) |  |  | $ | (278,014) |
Deferred profit | (30,268) |  |  | (10,044) |
Unrealized gain on investments | (12,993) |  |  | — |
Depreciation and amortization | — |  |  | (407,692) |
Total deferred tax liabilities | (401,635) |  |  | (695,750) |
Total net deferred tax liabilities | $ | (79,764) |  |  | $ | (380,162) |
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,
| 2022 |  | 2021 |  | 2020
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
GILTI | 2.0 | % |  | 2.6 | % |  | 3.0 | %
Net change in tax reserves | 2.0 | % |  | (1.1) | % |  | 1.5 | %
State income taxes, net of federal benefit | 0.3 | % |  | 0.2 | % |  | 0.2 | %
Tax rate change on deferred tax liability on purchased intangibles | — | % |  | 1.7 | % |  | — | %
Non-deductible impairment of goodwill | — | % |  | — | % |  | 4.1 | %
Effect of SBC | (0.2) | % |  | (0.3) | % |  | (0.3) | %
R&D tax credit | (1.1) | % |  | (1.1) | % |  | (1.8) | %
Foreign derived intangible income | (4.0) | % |  | (4.3) | % |  | (5.0) | %
Effect of foreign operations taxed at various rates | (4.2) | % |  | (6.6) | % |  | (12.1) | %
Restructuring | (11.2) | % |  | — | % |  | (2.6) | %
Other | 0.2 | % |  | (0.1) | % |  | (0.3) | %
Effective income tax rate | 4.8 | % |  | 12.0 | % |  | 7.7 | %
Schedule of Income Tax Contingencies | A reconciliation of gross unrecognized tax benefits was as follows:
| Year Ended June 30,
(In thousands) | 2022 |  | 2021 |  | 2020
Unrecognized tax benefits at the beginning of the year | $ | 149,642 |  |  | $ | 172,443 |  |  | $ | 146,426 |
Increases for tax positions taken in current year | 49,311 |  |  | 31,113 |  |  | 34,278 |
Increases for tax positions taken in prior years | 20,917 |  |  | 6,557 |  |  | 6,826 |
Decreases for settlements with taxing authorities | — |  |  | (28,651) |  |  | — |
Decreases for tax positions taken in prior years | (267) |  |  | (19,360) |  |  | (518) |
Decreases for lapsing of statutes of limitations | (1,676) |  |  | (12,460) |  |  | (14,569) |
Unrecognized tax benefits at the end of the year | $ | 217,927 |  |  | $ | 149,642 |  |  | $ | 172,443 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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