Table:
|  |  | Year Ended |  |
| --- | --- | --- | --- |
|  | June 30, 2019 | June 24, 2018 | June 25, 2017 |
|  |  | (in thousands) |  |
| Income tax expense computed at federal statutory rate | $513,780 | $891,011 | $634,086 |
| State income taxes, net of federal tax benefit | (17,565) | (50,585) | (11,973) |
| Foreign income taxed at different rates | (260,344) | (939,808) | (352,860) |
| Settlements and reductions in uncertain tax positions | (31,291) | (33,367) | (144,519) |
| Tax credits | (71,779) | (69,301) | (37,713) |
| State valuation allowance, net of federal tax benefit | 26,742 | 57,302 | 12,070 |
| Equity-based compensation | (7,566) | (35,875) | 13,187 |
| Other permanent differences and miscellaneous items | 39,251 | 43,214 | 1,632 |
| U.S. tax reform impacts | 63,913 | 908,517 | — |
|  | $255,141 | $771,108 | $113,910 |
Paragraphs:
A reconciliation of income tax expense provided at the federal statutory rate (21% in fiscal year 2019, 28.27% in fiscal year 2018, and 35% in fiscal year 2017) to actual income tax expense is as follows:
In July 2015, the U.S. Tax Court issued an opinion favorable to Altera with respect to Altera’s litigation with the IRS. The litigation related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement with Altera’s foreign subsidiary. In its opinion, the U.S. Tax Court accepted Altera’s position of excluding stock-based compensation from its intercompany cost-sharing arrangement. In June 2019, the Ninth Circuit, through a three-judge panel, reversed the 2015 decision of the U.S. Tax Court. Altera has petitioned the Ninth Circuit for an en banc rehearing of a larger panel of eleven Ninth Circuit judges. The Company will continue to monitor and evaluate the potential impact of this litigation on its fiscal year 2020 Consolidated Financial Statements. The estimated potential impact is in the range of $75 million, which may result in a decrease in deferred tax assets and an increase in tax expense.
Effective from fiscal year 2014 through 2017, the Company had a tax ruling in Switzerland for one of its foreign subsidiaries. The impact of the tax ruling decreased taxes by approximately $6.3 million for fiscal year 2017. The benefit of the tax ruling on diluted earnings per share was approximately $0.03 in fiscal year 2017. Effective fiscal year 2018, the Company has withdrawn its reduced tax rate ruling in Switzerland for this subsidiary due to the ruling being no longer necessary as the subsidiary meets the requirements to achieve the reduced tax rate under Swiss tax law.
Earnings of the Company’s foreign subsidiaries included in consolidated retained earnings that are indefinitely reinvested in foreign operations aggregated to approximately $458.4 million at June 30, 2019. If these earnings were remitted to the United States, they would be subject to foreign withholding taxes of approximately $73.1 million at current statutory rates.
Question:
What was the impact of tax ruling on taxes?
Answer: decreased taxes by approximately $6.3 million for fiscal year 2017.