Income Taxes (Tables)

12 Months Ended

Jun. 28, 2013

Income Tax Disclosure [Abstract]

Domestic and Foreign Components of Income Before Income Taxes

The domestic and foreign components of income before income taxes were as follows for the three years ended June 28, 2013 (in millions):

	2013		2012		2011
Foreign	$	870	$	1,559	$	660
Domestic		352		198		120
Income before income taxes	$	1,222	$	1,757	$	780

Components of Provision for Income Taxes

The components of the provision for income taxes were as follows for the three years ended June 28, 2013 (in millions):

	2013			2012			2011
Current:
Foreign	$	57		$	12		$	12
Domestic-federal		149			98			21
Domestic-state		1			1			1
Deferred:
Foreign		(7	)		18			—
Domestic-federal		(46	)		25			30
Domestic-state		88			(9	)		(10	)
Income tax provision	$	242		$	145		$	54

Deferred Tax Assets and Liabilities

Temporary differences and carryforwards, which give rise to a significant portion of deferred tax assets and liabilities as of June 28, 2013 and June 29, 2012 were as follows (in millions):

	2013			2012
Deferred tax assets:
Sales related reserves and accrued expenses not currently deductible	$	45		$	61
Accrued compensation and benefits not currently deductible		182			166
Domestic net operating loss carryforward		103			112
Business credit carryforward		123			154
Long-lived assets		47			—
Other		71			90
Total deferred tax assets		571			583
Deferred tax liabilities:
Long-lived assets		(156	)		(191	)
Other		—			(18	)
Total deferred tax liabilities		(156	)		(209	)
Valuation allowances		(133	)		(40	)
Deferred tax assets, net	$	282		$	334
Deferred tax assets:
Current portion (included in other current assets)	$	160		$	159
Non-current portion (included in other non-current assets)		411			424
Total deferred tax assets		571			583
Deferred tax liabilities:
Current portion (included in other current assets)		—			(3	)
Non-current portion (included in other non-current assets)		(156	)		(206	)
Total deferred tax liabilities		(156	)		(209	)
Valuation allowances (included in non-current portion of deferred tax assets)		(133	)		(40	)
Deferred tax assets, net	$	282		$	334

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 for the three years ended June 28, 2013:

	2013			2012			2011
U.S. Federal statutory rate		35	%		35	%		35	%
Tax rate differential on international income		(19	)		(29	)		(26	)
Tax effect of U.S. permanent differences		—			3			3
State income tax, net of federal tax		8			1			(1	)
Income tax credits		(4	)		(2	)		(4	)
Effective tax rate		20	%		8	%		7	%

Total Amounts of Unrecognized Tax Benefits

The following is a tabular reconciliation of the total amounts of unrecognized tax benefits for the years ended June 28, 2013, June 29, 2012 and July 1, 2011 (in millions):

	2013			2012			2011
Unrecognized tax benefit at beginning of period	$	280		$	245		$	230
Gross increases related to current year tax positions		29			14			24
Gross increases related to prior year tax positions		10			—			5
Gross decreases related to prior year tax positions		(8	)		—			(11	)
Settlements		(64	)		(18	)		(2	)
Lapse of statute of limitations		(7	)		—			(1	)
HGST acquisition		—			39			—
Unrecognized tax benefit at end of period	$	240		$	280		$	245