v3.25.2
Income Tax Expense (Tables)
12 Months Ended
Jun. 27, 2025
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:
202520242023
(in millions)
Foreign$2,602 $(492)$(696)
Domestic(1,472)(247)(153)
Income (loss) before taxes$1,130 $(739)$(849)
Schedule of Components of Income Tax Expense (Benefit)
The components of Income tax expense (benefit) were as follows:
202520242023
(in millions)
Current:
Foreign$213 $77 $27 
Domestic - Federal90 34 28 
Domestic - State(1)(8)
302 117 47 
Deferred:
Foreign(1)(8)10 
Domestic - Federal(773)(68)
Domestic - State(41)(15)(5)
(815)(91)
Income tax expense (benefit)
$(513)$26 $53 
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 27,
2025
June 28,
2024
(in millions)
Deferred tax assets:
Sales related reserves and accrued expenses not currently deductible$38 $34 
Accrued compensation and benefits not currently deductible75 75 
Net operating loss carryforward133 134 
Business credit carryforward562 520 
Long-lived assets796 42 
Interest and hedging costs not currently deductible166 187 
Other29 11 
Total deferred tax assets1,799 1,003 
Deferred tax liabilities:
Long-lived assets(40)(33)
Unremitted earnings of certain non-U.S. entities(149)(218)
Other(12)— 
Total deferred tax liabilities(201)(251)
Valuation allowances(598)(527)
Deferred tax assets, net$1,000 $225 
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:
202520242023
U.S. Federal statutory rate21 %21 %21 %
Tax rate differential on international income(36)(22)(22)
Tax effect of U.S. foreign income inclusion(1)(1)
Tax effect of U.S. foreign minimum tax25 (6)— 
Tax effect of U.S. stock-based compensation(2)(1)(1)
Tax effect of non-deductible loss on retained interest in Sandisk16 — — 
Tax effect of U.S. permanent differences— (1)
State income tax, net of federal tax— (1)
Change in valuation allowance(3)
Unremitted earnings of certain non-U.S. entities(2)(2)(1)
Foreign income tax credits(8)— 
R&D tax credits(6)
U.S. return to provision— (1)
Tax reserves(3)(3)
Inter-entity asset transfer(61)— — 
Other(1)— (1)
Effective tax rate(45)%(4)%(6)%
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:
JurisdictionNOL/Tax Credit Carryforward AmountExpiration
(in millions)
Federal NOL (Pre 2017 Act Generation)$563 
2026 to 2038
California NOL
348 
2040 to 2047
Other State NOL
292 
Various
Federal tax credits89 
2027 to 2036
State tax credits750 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:
JurisdictionNOL Carryforward AmountExpiration
(in millions)
Malaysia$69 2029
Japan42 2026
Schedule of Unrecognized Tax Benefits Roll Forward
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits excluding accrued interest and penalties:
202520242023
(in millions)
Unrecognized tax benefit, beginning balance$721 $1,021 $1,047 
Gross increases related to current year tax positions11 25 
Gross increases related to prior year tax positions26 73 22 
Gross decreases related to prior year tax positions(13)(32)(47)
Settlements(40)(363)(5)
Lapse of statute of limitations(10)(3)(3)
Distribution in connection with the Separation
(126)— — 
Unrecognized tax benefit, ending balance$569 $721 $1,021 
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:
JurisdictionPeriod Subject to Examination
China (calendar)
2014-2024
India (fiscal)
2017-2024
Japan (fiscal)
2016-2024
Malaysia (fiscal)
2018-2024
Thailand (fiscal)
2014-2024
Singapore (fiscal)
2021-2024
United Kingdom (fiscal)
2023-2024