XML 53 R35.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Income Tax Expense (Benefit) (Tables) | 12 Months Ended
--- | ---
Jun. 29, 2018
Income Tax Disclosure [Abstract] |
Domestic and Foreign Components of Income Before Income Taxes | The domestic and foreign components of income before taxes were as follows:
| 2018 |  | 2017 |  | 2016
| (in millions)
Foreign | $ | 2,398 |  |  | $ | 560 |  |  | $ | 516 |
Domestic | (313 | ) |  | 209 |  |  | (363 | )
Income before taxes | $ | 2,085 |  |  | $ | 769 |  |  | $ | 153 |
Components of Provision for Income Taxes | The components of the income tax expense (benefit) were as follows:
| 2018 |  | 2017 |  | 2016
| (in millions)
Current: |  |  |  |  |
Foreign | $ | 166 |  |  | $ | 127 |  |  | $ | 59 |
Domestic - Federal | 1,597 |  |  | 229 |  |  | 2 |
Domestic - State | (5 | ) |  | 4 |  |  | (1 | )
| 1,758 |  |  | 360 |  |  | 60 |
Deferred: |  |  |  |  |
Foreign | (39 | ) |  | 56 |  |  | (39 | )
Domestic - Federal | (300 | ) |  | (44 | ) |  | (109 | )
Domestic - State | (9 | ) |  | — |  |  | (1 | )
| (348 | ) |  | 12 |  |  | (149 | )
Income tax expense (benefit) | $ | 1,410 |  |  | $ | 372 |  |  | $ | (89 | )
Deferred Tax Assets and Liabilities | Temporary differences and carryforwards, which give rise to a significant portion of deferred tax assets and liabilities were as follows:
| June 29, 2018 |  | June 30, 2017
| (in millions)
Deferred tax assets: |  |  |
Sales related reserves and accrued expenses not currently deductible | $ | 53 |  |  | $ | 84 |
Accrued compensation and benefits not currently deductible | 145 |  |  | 252 |
Net operating loss carryforward | 443 |  |  | 292 |
Business credit carryforward | 448 |  |  | 283 |
Long-lived assets | 161 |  |  | 236 |
Other | 118 |  |  | 141 |
Total deferred tax assets | 1,368 |  |  | 1,288 |
Deferred tax liabilities: |  |  |
Long-lived assets | (491 | ) |  | (874 | )
Unremitted earnings of certain non-U.S. entities | (5 | ) |  | (38 | )
Other | (43 | ) |  | (11 | )
Total deferred tax liabilities | (539 | ) |  | (923 | )
Valuation allowances | (614 | ) |  | (518 | )
Deferred tax assets (liabilities), net | $ | 215 |  |  | $ | (153 | )
U.S. Federal Statutory Rate to Company's Effective Tax Rate | Reconciliation of the U.S. Federal statutory rate to the Company’s effective tax rate is as follows:
| 2018 |  | 2017 |  | 2016
U.S. Federal statutory rate | 28 | % |  | 35 | % |  | 35 | %
Tax rate differential on international income | (34 | ) |  | (27 | ) |  | (103 | )
Tax effect of U.S. non-deductible convertible debt costs | — |  |  | — |  |  | 13 |
Tax effect of U.S. non-deductible acquisition costs | — |  |  | — |  |  | 10 |
Tax effect of U.S. foreign income inclusion | 1 |  |  | 4 |  |  | 9 |
Tax effect of U.S. non-deductible stock-based compensation | 1 |  |  | 1 |  |  | 9 |
Tax effect of U.S. permanent differences | (1 | ) |  | (1 | ) |  | 1 |
State income tax, net of federal tax | — |  |  | 1 |  |  | (1 | )
Impact of 2017 Act: |  |  |  |  |
One-time mandatory deemed repatriation tax | 75 |  |  | — |  |  | — |
Re-measurement of deferred taxes | (3 | ) |  | — |  |  | — |
Change in valuation allowance | 5 |  |  | 29 |  |  | 16 |
Unremitted earnings of certain non-U.S. entities | — |  |  | 5 |  |  | — |
Tax related to SanDisk integration | — |  |  | 12 |  |  | — |
Retroactive extension of Federal R&D credit | — |  |  | — |  |  | (9 | )
Income tax credits | (4 | ) |  | (12 | ) |  | (43 | )
Other | — |  |  | 1 |  |  | 5 |
Effective tax rate | 68 | % |  | 48 | % |  | (58 | )%
Summary of Operating Loss Carryforwards | The Company had varying amounts of foreign NOL carryforwards that do not expire or, if not used, expire in various years, depending on the country. The major jurisdictions that the Company receives foreign NOL carryforwards and the related amounts and expiration dates of these NOL carryforwards are as follows:
Jurisdiction |  | NOL Carryforward Amount |  | Expiration
|  | (in millions) |  |
Japan |  | $ | 141 |  |  | 2024 to 2026
Belgium |  | 86 |  |  | No expiration
China |  | 129 |  |  | 2023 to 2024
Malaysia |  | 117 |  |  | No expiration
Spain |  | 56 |  |  | No expiration
As of June 29, 2018, the Company had varying amounts of federal and state NOL/tax credit carryforwards that do not expire or, if not used, expire in various years. Following is a summary of the Company’s federal and state NOL/tax credit carryforwards and the related expiration dates of these NOL/tax credit carryforwards:
Jurisdiction | NOL/Tax Credit Carryforward Amount |  | Expiration
| (in millions) |  |
Federal NOL (Pre 2017 Act Generation) | $ | 766 |  |  | 2020 to 2037
Federal NOL (Post 2017 Act Generation) | 704 |  |  | No expiration
State NOL | 850 |  |  | 2022 to 2038
Federal tax credits | 155 |  |  | 2019 to 2038
State tax credits | 550 |  |  | No expiration
Total Amounts of Unrecognized Tax Benefits | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits excluding accrued interest and penalties:
| 2018 |  | 2017 |  | 2016
| (in millions)
Unrecognized tax benefit, beginning balance | $ | 522 |  |  | $ | 491 |  |  | $ | 350 |
Gross increases related to current year tax positions | 38 |  |  | 35 |  |  | 46 |
Gross increases related to prior year tax positions | 30 |  |  | 3 |  |  | 6 |
Gross decreases related to prior year tax positions | (9 | ) |  | (8 | ) |  | (15 | )
Settlements | (19 | ) |  | (8 | ) |  | (8 | )
Lapse of statute of limitations | (11 | ) |  | (19 | ) |  | (8 | )
Acquisitions | — |  |  | 28 |  |  | 120 |
Unrecognized tax benefit, ending balance | $ | 551 |  |  | $ | 522 |  |  | $ | 491 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information, such as tax authority, amounts, and expiration dates, of net operating loss carryforwards, including an assessment of the likelihood of utilization. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32559-109319 + Details
Name: | us-gaap_SummaryOfOperatingLossCarryforwardsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration