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Income Tax Expense (Tables) | 12 Months Ended
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Jun. 28, 2019
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of Income (loss) before taxes were as follows:
| 2019 |  | 2018 |  | 2017
| (in millions)
Foreign | $ | (642 | ) |  | $ | 2,398 |  |  | $ | 560 |
Domestic | 355 |  |  | (313 | ) |  | 209 |
Income (loss) before taxes | $ | (287 | ) |  | $ | 2,085 |  |  | $ | 769 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense (benefit) were as follows:
| 2019 |  | 2018 |  | 2017
| (in millions)
Current: |  |  |  |  |
Foreign | $ | 181 |  |  | $ | 166 |  |  | $ | 127 |
Domestic - Federal | (91 | ) |  | 1,597 |  |  | 229 |
Domestic - State | 3 |  |  | (5 | ) |  | 4 |
| 93 |  |  | 1,758 |  |  | 360 |
Deferred: |  |  |  |  |
Foreign | 226 |  |  | (39 | ) |  | 56 |
Domestic - Federal | 141 |  |  | (300 | ) |  | (44 | )
Domestic - State | 7 |  |  | (9 | ) |  | — |
| 374 |  |  | (348 | ) |  | 12 |
Income tax expense | $ | 467 |  |  | $ | 1,410 |  |  | $ | 372 |
Schedule of 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 28, 2019 |  | June 29, 2018
| (in millions)
Deferred tax assets: |  |  |
Sales related reserves and accrued expenses not currently deductible | $ | 48 |  |  | $ | 53 |
Accrued compensation and benefits not currently deductible | 124 |  |  | 145 |
Net operating loss carryforward | 285 |  |  | 443 |
Business credit carryforward | 410 |  |  | 448 |
Long-lived assets | 144 |  |  | 161 |
Other | 135 |  |  | 118 |
Total deferred tax assets | 1,146 |  |  | 1,368 |
Deferred tax liabilities: |  |  |
Long-lived assets | (413 | ) |  | (491 | )
Unremitted earnings of certain non-U.S. entities | (220 | ) |  | (5 | )
Other | (32 | ) |  | (43 | )
Total deferred tax liabilities | (665 | ) |  | (539 | )
Valuation allowances | (619 | ) |  | (614 | )
Deferred tax assets (liabilities), net | $ | (138 | ) |  | $ | 215 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the U.S. Federal statutory rate to the Company’s effective tax rate is as follows:
| 2019 |  | 2018 |  | 2017
U.S. Federal statutory rate | 21 | % |  | 28 | % |  | 35 | %
Tax rate differential on international income | (75 | ) |  | (34 | ) |  | (27 | )
Tax effect of U.S. foreign income inclusion | (7 | ) |  | 1 |  |  | 4 |
Tax effect of U.S. foreign minimum tax | (38 | ) |  | — |  |  | — |
Tax effect of U.S. foreign derived intangible income | 11 |  |  | — |  |  | — |
Tax effect of U.S. non-deductible stock-based compensation | (1 | ) |  | 1 |  |  | 1 |
Tax effect of U.S. permanent differences | (3 | ) |  | (1 | ) |  | (1 | )
State income tax, net of federal tax | — |  |  | — |  |  | 1 |
Impact of 2017 Act: |  |  |  |  |
One-time mandatory deemed repatriation tax | (41 | ) |  | 75 |  |  | — |
Re-measurement of deferred taxes | 2 |  |  | (3 | ) |  | — |
Change in valuation allowance | (2 | ) |  | 5 |  |  | 29 |
Unremitted earnings of certain non-U.S. entities | (79 | ) |  | — |  |  | 5 |
Tax related to SanDisk integration | — |  |  | — |  |  | 12 |
Foreign income tax credits | 23 |  |  | — |  |  | — |
Federal R&D credits | 24 |  |  | (4 | ) |  | (12 | )
Other | 2 |  |  | — |  |  | 1 |
Effective tax rate | (163 | )% |  | 68 | % |  | 48 | %
Summary of Operating Loss Carryforwards | As of June 28, 2019, 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) | $ | 700 |  |  | 2021 to 2037
Federal NOL (Post 2017 Act Generation) | — |  |  | No expiration
State NOL | 619 |  |  | 2021 to 2038
Federal tax credits | 59 |  |  | 2020 to 2034
State tax credits | 578 |  |  | No expiration
As of June 28, 2019, 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 |  | $ | 132 |  |  | 2024 to 2026
Belgium |  | 105 |  |  | No expiration
China |  | 133 |  |  | 2023 to 2024
Spain |  | 52 |  |  | No expiration
Summary of Income Tax Contingencies | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits excluding accrued interest and penalties:
| 2019 |  | 2018 |  | 2017
| (in millions)
Unrecognized tax benefit, beginning balance | $ | 551 |  |  | $ | 522 |  |  | $ | 491 |
Gross increases related to current year tax positions | 172 |  |  | 38 |  |  | 35 |
Gross increases related to prior year tax positions | 8 |  |  | 30 |  |  | 3 |
Gross decreases related to prior year tax positions | (24 | ) |  | (9 | ) |  | (8 | )
Settlements | (1 | ) |  | (19 | ) |  | (8 | )
Lapse of statute of limitations | (11 | ) |  | (11 | ) |  | (19 | )
Acquisitions | — |  |  | — |  |  | 28 |
Unrecognized tax benefit, ending balance | $ | 695 |  |  | $ | 551 |  |  | $ | 522 |

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