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Income Tax Expense (Tables) | 12 Months Ended
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Jul. 01, 2022
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:
| 2022 |  | 2021 |  | 2020
| (in millions)
Foreign | $ | 1,384 |  |  | $ | 218 |  |  | $ | (695) |
Domestic | 739 |  |  | 709 |  |  | 649 |
Income (loss) before taxes | $ | 2,123 |  |  | $ | 927 |  |  | $ | (46) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense (benefit) were as follows:
| 2022 |  | 2021 |  | 2020
| (in millions)
Current: |  |  |  |  |
Foreign | $ | 143 |  |  | $ | 195 |  |  | $ | 157 |
Domestic - Federal | 341 |  |  | 154 |  |  | 124 |
Domestic - State | 25 |  |  | (1) |  |  | 5 |
| 509 |  |  | 348 |  |  | 286 |
Deferred: |  |  |  |  |
Foreign | 27 |  |  | (20) |  |  | (29) |
Domestic - Federal | 84 |  |  | (208) |  |  | (53) |
Domestic - State | 3 |  |  | (14) |  |  | — |
| 114 |  |  | (242) |  |  | (82) |
Income tax expense | $ | 623 |  |  | $ | 106 |  |  | $ | 204 |
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:
| July 1, 2022 |  | July 2, 2021
| (in millions)
Deferred tax assets: |  |  |
Sales related reserves and accrued expenses not currently deductible | $ | 71 |  |  | $ | 88 |
Accrued compensation and benefits not currently deductible | 114 |  |  | 143 |
Deferred revenue | — |  |  | 128 |
Net operating loss carryforward | 195 |  |  | 196 |
Business credit carryforward | 483 |  |  | 461 |
Long-lived assets | 72 |  |  | 101 |
Other | 178 |  |  | 131 |
Total deferred tax assets | 1,113 |  |  | 1,248 |
Deferred tax liabilities: |  |  |
Long-lived assets | (128) |  |  | (202) |
Unremitted earnings of certain non-U.S. entities | (288) |  |  | (280) |
Other | (17) |  |  | (20) |
Total deferred tax liabilities | (433) |  |  | (502) |
Valuation allowances | (580) |  |  | (558) |
Deferred tax assets, net | $ | 100 |  |  | $ | 188 |
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:
| 2022 |  | 2021 |  | 2020
U.S. Federal statutory rate | 21 | % |  | 21 | % |  | 21 | %
Tax rate differential on international income | (9) |  |  | 8 |  |  | (443) |
Tax effect of U.S. foreign income inclusion | — |  |  | 5 |  |  | (38) |
Tax effect of U.S. foreign minimum tax | 5 |  |  | 1 |  |  | (235) |
Tax effect of U.S. foreign derived intangible income | (1) |  |  | (14) |  |  | 109 |
Tax effect of U.S. non-deductible stock-based compensation | 1 |  |  | 1 |  |  | (21) |
Tax effect of U.S. permanent differences | — |  |  | 1 |  |  | (26) |
IRS Tentative Settlement | 15 |  |  | — |  |  | — |
Change in valuation allowance | 1 |  |  | (7) |  |  | (12) |
Unremitted earnings of certain non-U.S. entities | 1 |  |  | 6 |  |  | (114) |
Foreign income tax credits | (3) |  |  | (5) |  |  | 191 |
R&D tax credits | (4) |  |  | (8) |  |  | 147 |
Other | 2 |  |  | 2 |  |  | (22) |
Effective tax rate | 29 | % |  | 11 | % |  | (443) | %
Schedule of Operating Loss Carryforwards | 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) | $ | 627 |  |  | 2023 to 2038
State NOL | 364 |  |  | 2031 to 2038
Federal tax credits | 57 |  |  | 2023 to 2043
State tax credits | 691 |  |  | No expiration
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) |  |
Malaysia | $ | 122 |  |  | 2025 to 2028
Belgium | 106 |  |  | No expiration
Japan | 84 |  |  | 2024 to 2031
Spain | 46 |  |  | No expiration
Netherlands | 12 |  |  | 2025 to 2026
Schedule of Income Tax Contingencies | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits excluding accrued interest and penalties:
| 2022 |  | 2021 |  | 2020
| (in millions)
Unrecognized tax benefit, beginning balance | $ | 748 |  |  | $ | 717 |  |  | $ | 695 |
Gross increases related to current year tax positions | 12 |  |  | 21 |  |  | 11 |
Gross increases related to prior year tax positions | 358 |  |  | 46 |  |  | 35 |
Gross decreases related to prior year tax positions | (65) |  |  | (20) |  |  | (4) |
Settlements | (1) |  |  | (9) |  |  | (12) |
Lapse of statute of limitations | (5) |  |  | (7) |  |  | (8) |
Unrecognized tax benefit, ending balance | $ | 1,047 |  |  | $ | 748 |  |  | $ | 717 |

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