v3.26.1
Income Taxes (Tables)
 12 Months Ended
Jul. 03, 2026
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:
202620252024
(in millions)
Foreign$925 $2,602 $(492)
Domestic8,980 (1,472)(247)
Income (loss) before taxes$9,905 $1,130 $(739)
Schedule of Components of Income Tax Expense (Benefit)
The components of Income tax expense (benefit) were as follows:
202620252024
(in millions)
Current:
Foreign$189 $213 $77 
Domestic - Federal125 90 34 
Domestic - State38 (1)6 
352 302 117 
Deferred:
Foreign(64)(1)(8)
Domestic - Federal193 (773)(68)
Domestic - State— (41)(15)
129 (815)(91)
Income tax expense (benefit)
$481 $(513)$26 
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:
July 3,
2026		June 27,
2025
(in millions)
Deferred tax assets:
Sales related reserves and accrued expenses not currently deductible$71 $38 
Accrued compensation and benefits not currently deductible101 75 
Net operating loss carryforward114 133 
Business credit carryforward562 562 
Long-lived assets748 796 
Interest and hedging costs not currently deductible22 166 
Other44 29 
Total deferred tax assets1,662 1,799 
Deferred tax liabilities:
Long-lived assets(69)(40)
Unremitted earnings of certain non-U.S. entities(114)(149)
Other(1)(12)
Total deferred tax liabilities(184)(201)
Valuation allowances(611)(598)
Deferred tax assets, net$867 $1,000 
Schedule of Effective Income Tax Rate Reconciliation
The following table reconciles the income tax provision with the amount calculated using the U.S. federal statutory rate applied to pretax income, reflecting the adoption of ASU 2023-09 (amounts in millions, except for percentages):

2026
AmountPercent
US Federal Statutory Income Tax Rate$2,080 21 %
State and Local Income Taxes, Net of Federal Income Tax Effect (1)
40 1 
Foreign Tax Effects
Thailand
Tax Holiday Exempt Income(140)(1)
Pillar Two82 1 
Other(17)— 
Other Foreign Jurisdictions(30)(1)
Effect of Changes in Tax Laws or Rates Enacted in the Current Period— — 
Effect of Cross-Border Tax Laws
FDDEI Deduction(112)(1)
Other(20)— 
Tax Credits(64)(1)
Valuation Allowance— — 
Non-taxable or Non-deductible Items:
Stock-based Compensation (2)
(202)(2)
Tax-free disposition of retained interest in Sandisk(1,199)(12)
Other14 — 
Uncertain Tax Positions (3)
87 1 
Other(38)(1)
Total Tax Provision and Effective Tax Rate$481 5 %
(1)     State taxes in Illinois, New Jersey, and Utah comprised greater than 50% of the tax effect in this category.
(2)     Includes amounts related to non-deductible stock-based compensation, in addition to excess tax benefits or shortfalls from stock-based compensation. Our tax provision includes $155 million of tax windfalls from stock-based compensation.
(3)     Changes in unrecognized tax benefits are presented on an aggregated basis for all jurisdictions.
Reconciliation of the U.S. Federal statutory rate to the Company’s effective tax rate is as follows:
20252024
U.S. Federal statutory rate21 %21 %
Tax rate differential on international income(36)(22)
Tax effect of U.S. foreign income inclusion1 (1)
Tax effect of U.S. foreign minimum tax25 (6)
Tax effect of U.S. stock-based compensation(2)(1)
Tax effect of non-deductible loss on retained interest in Sandisk16 — 
Tax effect of U.S. permanent differences— 5 
State income tax, net of federal tax— 2 
Change in valuation allowance6 (3)
Unremitted earnings of certain non-U.S. entities(2)(2)
Foreign income tax credits(8)1 
R&D tax credits(6)5 
U.S. return to provision1 — 
Tax reserves1 (3)
Inter-entity asset transfer(61)— 
Other(1)— 
Effective tax rate(45)%(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, is as follows:

2026
(in millions)
Federal$506 
State49 
Foreign
Thailand39 
Malaysia41 
Other99 
Cash paid for income taxes, net of refunds received$734 
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)$546 2027 to 2038
California NOL
353 2028 to 2047
Other State NOL
194 
Various
Federal tax credits49 2027 to 2035
State tax credits774 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$76 2029
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:
202620252024
(in millions)
Unrecognized tax benefit, beginning balance$569 $721 $1,021 
Gross increases related to current year tax positions13 11 25 
Gross increases related to prior year tax positions34 26 73 
Gross decreases related to prior year tax positions— (13)(32)
Settlements(4)(40)(363)
Lapse of statute of limitations(2)(10)(3)
Distribution in connection with the Separation
— (126)— 
Unrecognized tax benefit, ending balance$610 $569 $721 
Schedule of Major Foreign Jurisdictions In the following major foreign jurisdictions, the Company could be subject to examination as noted below:
JurisdictionPeriod Subject to Examination
China (calendar)2015-2025
India (fiscal)2018-2025
Japan (fiscal)2017-2025
Malaysia (fiscal)2019-2025
Thailand (fiscal)2015-2025
Singapore (fiscal)2022-2025
United Kingdom (fiscal)2024-2025