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Income Tax Expense (Tables)

12 Months Ended

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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