Income Taxes (Tables)

12 Months Ended

Jun. 26, 2016

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes were as follows:



	June 26, 2016			June 28, 2015		June 29, 2014
	(in thousands)
United States	$	(113,607	)	$	72,728	$	78,076
Foreign	1,073,724			668,122		645,287
	$	960,117		$	740,850	$	723,363

Components of Provision (Benefit) for Income Taxes

Significant components of the provision (benefit) for income taxes attributable to income before income taxes were as follows:



	June 26, 2016			June 28, 2015			June 29, 2014
	(in thousands)
Federal:
Current	$	1,426		$	16,795		$	31,762
Deferred	(38,616		)	12,115			10,692
	(37,190		)	28,910			42,454
State:
Current	2,892			1,376			3,192
Deferred	(7,600		)	158			(869		)
	(4,708		)	1,534			2,323
Foreign:
Current	90,752			61,551			49,273
Deferred	(2,786		)	(6,722		)	(2,976		)
	87,966			54,829			46,297
Total Provision (Benefit) for Income Taxes	$	46,068		$	85,273		$	91,074

Components of Net Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets and liabilities were as follows:



	June 26, 2016			June 28, 2015
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	176,767		$	129,234
Allowances and reserves	128,416			131,079
Equity-based compensation	29,414			21,086
Inventory valuation differences	17,178			15,167
Prepaid cost sharing	88,522			—
Other	24,540			13,942
Gross deferred tax assets	464,837			310,508
Valuation allowance	(101,689		)	(85,620		)
Net deferred tax assets	363,148			224,888
Deferred tax liabilities:
Intangible assets	(46,774		)	(64,725		)
Convertible debt	(151,483		)	(130,991		)
Temporary differences for capital assets	(61,845		)	(37,635		)
Amortization of goodwill	(14,176		)	(12,502		)
Unremitted earnings of foreign subsidiaries	(146,459		)	(66,412		)
Other	(8,594		)	(6,100		)
Gross deferred tax liabilities	(429,331		)	(318,365		)
Net deferred tax liabilities	$	(66,183	)	$	(93,477	)

Reconciliation of Income Tax Expense Provided at Federal Statutory Rate to Actual Income Tax Expense (Benefit)

A reconciliation of income tax expense provided at the federal statutory rate (35% in fiscal years 2016, 2015, and 2014) to actual income tax expense (benefit) is as follows:



	June 26, 2016			June 28, 2015			June 29, 2014
	(in thousands)
Income tax expense computed at federal statutory rate	$	336,041		$	259,297		$	253,177
State income taxes, net of federal tax benefit	(14,070		)	(8,611		)	1,884
Foreign income taxed at different rates	(265,123		)	(175,581		)	(164,130		)
Tax credits	(48,277		)	(24,416		)	(15,650		)
State valuation allowance, net of federal tax benefit	17,948			8,594			(1,707		)
Equity-based compensation	12,366			28,845			23,167
Other permanent differences and miscellaneous items	7,183			(2,855		)	(5,667		)
	$	46,068		$	85,273		$	91,074

Changes in Balance of Gross Unrecognized Tax Benefits

The aggregate changes in the balance of gross unrecognized tax benefits were as follows:




	(in thousands)
Balance as of June 30, 2013	$	333,114
Lapse of statute of limitations	(16,048		)
Increases in balances related to tax positions taken during prior periods	6,225
Decreases in balances related to tax positions taken during prior periods	(4,182		)
Increases in balances related to tax positions taken during current period	33,003
Balance as of June 29, 2014	352,112
Settlements and effective settlements with tax authorities	(2,108		)
Lapse of statute of limitations	(9,376		)
Increases in balances related to tax positions taken during prior periods	3,729
Decreases in balances related to tax positions taken during prior periods	(12,615		)
Increases in balances related to tax positions taken during current period	31,810
Balance as of June 28, 2015	363,552
Lapse of statute of limitations	(10,992		)
Increases in balances related to tax positions taken during prior periods	18,200
Decreases in balances related to tax positions taken during prior periods	(421		)
Increases in balances related to tax positions taken during current period	47,093
Balance as of June 26, 2016	$	417,432