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Income Tax Expense (Tables) | 12 Months Ended
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Jun. 30, 2023
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:
| 2023 |  | 2022 |  | 2021
| (in millions)
Foreign | $ | (2,029) |  |  | $ | 1,384 |  |  | $ | 218 |
Domestic | 469 |  |  | 739 |  |  | 709 |
Income (loss) before taxes | $ | (1,560) |  |  | $ | 2,123 |  |  | $ | 927 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax expense were as follows:
| 2023 |  | 2022 |  | 2021
| (in millions)
Current: |  |  |  |  |
Foreign | $ | 153 |  |  | $ | 143 |  |  | $ | 195 |
Domestic - Federal | 33 |  |  | 341 |  |  | 154 |
Domestic - State | (6) |  |  | 25 |  |  | (1) |
| 180 |  |  | 509 |  |  | 348 |
Deferred: |  |  |  |  |
Foreign | 8 |  |  | 27 |  |  | (20) |
Domestic - Federal | (36) |  |  | 84 |  |  | (208) |
Domestic - State | (6) |  |  | 3 |  |  | (14) |
| (34) |  |  | 114 |  |  | (242) |
Income tax expense | $ | 146 |  |  | $ | 623 |  |  | $ | 106 |
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 30, 2023 |  | July 1, 2022
| (in millions)
Deferred tax assets: |  |  |
Sales related reserves and accrued expenses not currently deductible | $ | 52 |  |  | $ | 71 |
Accrued compensation and benefits not currently deductible | 88 |  |  | 114 |
Net operating loss carryforward | 183 |  |  | 195 |
Business credit carryforward | 478 |  |  | 483 |
Long-lived assets | 56 |  |  | 72 |
Other | 171 |  |  | 178 |
Total deferred tax assets | 1,028 |  |  | 1,113 |
Deferred tax liabilities: |  |  |
Long-lived assets | (48) |  |  | (128) |
Unremitted earnings of certain non-U.S. entities | (297) |  |  | (288) |
Other | (7) |  |  | (17) |
Total deferred tax liabilities | (352) |  |  | (433) |
Valuation allowances | (565) |  |  | (580) |
Deferred tax assets, net | $ | 111 |  |  | $ | 100 |
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:
| 2023 |  | 2022 |  | 2021
U.S. Federal statutory rate | 21 | % |  | 21 | % |  | 21 | %
Tax rate differential on international income | (33) |  |  | (9) |  |  | 8 |
Tax effect of U.S. foreign income inclusion | (1) |  |  | — |  |  | 5 |
Tax effect of U.S. foreign minimum tax | — |  |  | 5 |  |  | 1 |
Tax effect of U.S. foreign derived intangible income | 4 |  |  | (1) |  |  | (14) |
Tax effect of U.S. non-deductible stock-based compensation | (1) |  |  | 1 |  |  | 1 |
Tax effect of U.S. permanent differences | — |  |  | — |  |  | 1 |
IRS Tentative Settlement | 1 |  |  | 15 |  |  | — |
Change in valuation allowance | 1 |  |  | 1 |  |  | (7) |
Unremitted earnings of certain non-U.S. entities | (1) |  |  | 1 |  |  | 6 |
Foreign income tax credits | — |  |  | (3) |  |  | (5) |
R&D tax credits | 5 |  |  | (4) |  |  | (8) |
U.S. return to provision | (2) |  |  | — |  |  | (3) |
Other | (3) |  |  | 2 |  |  | 5 |
Effective tax rate | (9) | % |  | 29 | % |  | 11 | %
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) | $ | 594 |  |  | 2024 to 2038
State NOL | 374 |  |  | 2032 to 2043
Federal tax credits | 51 |  |  | 2024 to 2032
State tax credits | 725 |  |  | 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 | $ | 106 |  |  | 2025 to 2028
Belgium | 106 |  |  | No expiration
Japan | 72 |  |  | 2024 to 2031
Spain | 45 |  |  | 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:
| 2023 |  | 2022 |  | 2021
| (in millions)
Unrecognized tax benefit, beginning balance | $ | 1,047 |  |  | $ | 748 |  |  | $ | 717 |
Gross increases related to current year tax positions | 7 |  |  | 12 |  |  | 21 |
Gross increases related to prior year tax positions | 22 |  |  | 358 |  |  | 46 |
Gross decreases related to prior year tax positions | (47) |  |  | (65) |  |  | (20) |
Settlements | (5) |  |  | (1) |  |  | (9) |
Lapse of statute of limitations | (3) |  |  | (5) |  |  | (7) |
Unrecognized tax benefit, ending balance | $ | 1,021 |  |  | $ | 1,047 |  |  | $ | 748 |
Schedule of Major Foreign Jurisdictions | In the following major foreign jurisdictions where there is no tax holiday, the Company could be subject to examination as noted below:
Jurisdiction |  | Period Subject to Examination
China (calendar) |  | 2013-2022
Ireland (fiscal) |  | 2019-2022
India (fiscal) |  | 2009-2022
Israel (fiscal) |  | 2014-2022
Japan (fiscal) |  | 2016-2022
Malaysia (fiscal) |  | 2015-2022
Thailand (fiscal) |  | 2013-2022
Singapore (fiscal) |  | 2019-2022
United Kingdom (fiscal) |  | 2021-2022

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