v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income before Income Taxes, Domestic and Foreign
The components of income before income taxes were as follows:
Year Ended June 30,
(In thousands)202620252024
Domestic income before income taxes$3,629,727 $3,070,097 $1,997,090 
Foreign income before income taxes1,976,198 1,574,351 1,192,942 
Total income before income taxes$5,605,925 $4,644,448 $3,190,032 
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes was comprised of the following:
(In thousands)Year Ended June 30,
202620252024
Current:
Federal$330,215 $624,002 $395,876 
State9,621 21,161 10,737 
Foreign348,301 182,448 160,401 
688,137 827,611 567,014 
Deferred:
Federal80,690 (222,907)(110,686)
State952 (5,433)(2,770)
Foreign5,375 (16,466)(25,422)
87,017 (244,806)(138,878)
Provision for income taxes$775,154 $582,805 $428,136 
Schedule of Deferred Tax Assets and Liabilities
The significant components of deferred income tax assets and liabilities were as follows:
(In thousands)As of June 30,
20262025
Deferred tax assets:
Tax credits and net operating losses$364,290 $327,618 
Capitalized R&D expenses361,467 447,043 
Depreciation and amortization220,997 190,256 
Inventory reserves144,298 135,121 
Employee benefits accrual125,406 106,746 
Non-deductible reserves63,679 69,790 
Unearned revenue52,454 48,372 
SBC19,978 18,835 
Other17,936 43,843 
Gross deferred tax assets1,370,505 1,387,624 
Valuation allowance(356,639)(310,599)
Net deferred tax assets$1,013,866 $1,077,025 
Deferred tax liabilities:
Unremitted earnings of foreign subsidiaries not indefinitely reinvested$(411,657)$(360,544)
Deferred profit(31,064)(41,378)
Unrealized gain on investments(7,569)(16,278)
Total deferred tax liabilities(450,290)(418,200)
Total net deferred tax assets$563,576 $658,825 
Schedule of Effective Income Tax Rate Reconciliation
Beginning in the fiscal year ended June 30, 2026, we adopted ASU 2023-09 on a prospective basis. The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate pursuant to the disclosure requirements of ASU 2023-09 for the fiscal year ended June 30, 2026 was as follows:
(Dollar amounts in thousands)Year Ended June 30, 2026
Federal statutory income tax rate$1,177,244 21.0 %
State and local income taxes, net of federal income tax effect(1)
8,553 0.2 %
Effect of cross border tax laws
FDII(222,284)(4.0)%
Other17,952 0.3 %
Tax credits
R&D credit(59,203)(1.0)%
Other(9,043)(0.2)%
Nontaxable or nondeductible items12,380 0.2 %
Changes in unrecognized tax benefits(8,439)(0.2)%
Other adjustments
SBC(72,329)(1.3)%
Other(4,499)(0.1)%
Foreign tax effects
Singapore
Tax incentives(95,804)(1.7)%
Other(2)
(38,928)(0.7)%
China48,337 0.9 %
Other jurisdictions21,217 0.4 %
Effective income tax rate$775,154 13.8 %
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(1)Oregon makes up the majority of the effect of the state and local income tax category.
(2)Includes foreign tax rate differential.
The reconciliation of the U.S. federal statutory income tax rate to our effective income tax rate was as follows:
Year Ended June 30,
20252024
Federal statutory rate21.0 %21.0 %
GILTI2.9 %3.7 %
Goodwill impairment1.1 %1.7 %
Net change in tax reserves0.3 %1.1 %
State income taxes, net of federal benefit0.3 %0.3 %
FDII(6.6)%(5.9)%
Effect of foreign operations taxed at various rates(5.1)%(6.6)%
R&D tax credit(1.1)%(1.6)%
Other(0.3)%(0.3)%
Effective income tax rate12.5 %13.4 %
Schedule of Cash Paid for Income Taxes
Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended June 30, 2026 was as follows:
(In thousands)Year Ended June 30, 2026
Federal$509,387 
State12,426 
Foreign
China91,214 
Other168,382 
Cash paid for income taxes, net of refunds received$781,409 
Reconciliation of Gross Unrecognized Tax Benefits
A reconciliation of gross unrecognized tax benefits was as follows:
Year Ended June 30,
(In thousands)202620252024
Unrecognized tax benefits at the beginning of the year$258,604 $245,707 $213,092 
Increases for tax positions taken in current year38,538 35,429 40,209 
Increases for tax positions taken in prior years10,685 10,862 23,291 
Increases (decreases) for settlements with taxing authorities1,808 (4,687)— 
Decreases for tax positions taken in prior years(31,840)(11,607)(26,766)
Decreases for lapsing of statutes of limitations(20,028)(17,100)(4,119)
Unrecognized tax benefits at the end of the year$257,767 $258,604 $245,707