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v3.22.2.2

Income Taxes (Tables) | 12 Months Ended
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Jul. 01, 2022
Income Tax Disclosure [Abstract] |
Components of Income Before Income Taxes and Income Tax Expense (Benefit) | The components of income before income taxes and income tax provision (benefit) were as follows:
| Fiscal Years
| 2022 |  | 2021 |  | 2020
Income (loss) before income taxes: |  |  |  |  |
United States | $ | 24,286 |  |  | $ | 85,101 |  |  | $ | 93,388 |
Foreign | (5,891) |  |  | (7,928) |  |  | 545 |
| $ | 18,395 |  |  | $ | 77,173 |  |  | $ | 93,933 |
Tax provision (benefit): |  |  |  |  |
Federal: |  |  |  |  |
Current | $ | 3,857 |  |  | $ | 12,157 |  |  | $ | 8,442 |
Deferred | (230) |  |  | (995) |  |  | (1,077) |
| 3,627 |  |  | 11,162 |  |  | 7,365 |
State: |  |  |  |  |
Current | 3,626 |  |  | 6,271 |  |  | 3,407 |
Deferred | (2,721) |  |  | (2,689) |  |  | (2,327) |
| 905 |  |  | 3,582 |  |  | 1,080 |
Foreign: |  |  |  |  |
Current | 2,535 |  |  | 435 |  |  | 475 |
Deferred | 53 |  |  | (50) |  |  | (699) |
| 2,588 |  |  | 385 |  |  | (224) |
| $ | 7,120 |  |  | $ | 15,129 |  |  | $ | 8,221 |
Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate from Continuing Operations | The following is the reconciliation between the statutory Federal income tax rate and the Company’s effective income tax rate:
| Fiscal Years
| 2022 |  | 2021 |  | 2020
Tax provision at federal statutory rates | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income tax, net of federal tax benefit | 8.1 |  |  | 6.7 |  |  | 6.1 |
Research and development tax credits | (39.5) |  |  | (10.9) |  |  | (11.9) |
Provision to return | 10.3 |  |  | (1.3) |  |  | (3.1) |
Excess tax provision (benefit) related to stock compensation | 5.3 |  |  | (3.7) |  |  | (7.7) |
Foreign income tax rate differential | 2.3 |  |  | 0.9 |  |  | 0.1 |
Non-deductible compensation | 20.9 |  |  | 3.6 |  |  | 2.6 |
Acquisition costs | 1.2 |  |  | 0.4 |  |  | — |
Reserves for unrecognized income tax benefits | 5.4 |  |  | 1.3 |  |  | 3.0 |
Tax rate changes | — |  |  | — |  |  | (0.5) |
Valuation allowance | 4.3 |  |  | 1.9 |  |  | — |
Other | (0.6) |  |  | (0.3) |  |  | (0.8) |
| 38.7 | % |  | 19.6 | % |  | 8.8 | %
Components of Net Deferred Tax Assets (Liabilities) | The components of the Company’s net deferred tax liabilities were as follows:
| As of
| July 1, 2022 |  | July 2, 2021
Deferred tax assets: |  |  |
Inventory valuation and receivable allowances | 17,248 |  |  | 15,039 |
Accrued compensation | 5,970 |  |  | 5,421 |
Stock compensation | 6,154 |  |  | 4,548 |
Federal and state tax credit carryforwards | 20,294 |  |  | 17,405 |
Other accruals | 1,503 |  |  | 994 |
Deferred compensation | 930 |  |  | 930 |
Acquired net operating loss carryforward | 5,275 |  |  | 10,487 |
Foreign net operating loss carryforward | 1,859 |  |  | 1,703 |
Operating lease liabilities | 21,988 |  |  | 21,889 |
Deferred revenue | 743 |  |  | 2,899 |
Other | 307 |  |  | 734 |
| 82,271 |  |  | 82,049 |
Valuation allowance | (15,349) |  |  | (15,257) |
Total deferred tax assets | 66,922 |  |  | 66,792 |
Deferred tax liabilities: |  |  |
Prepaid expenses | (1,815) |  |  | (984) |
Property and equipment | (19,766) |  |  | (17,734) |
Intangible assets | (59,628) |  |  | (58,839) |
Operating lease right-of-use assets | (17,985) |  |  | (17,987) |
Other | (126) |  |  | (58) |
Total deferred tax liabilities | (99,320) |  |  | (95,602) |
Net deferred tax liabilities | $ | (32,398) |  |  | $ | (28,810) |
As reported: |  |  |
Deferred tax liabilities | $ | (32,398) |  |  | $ | (28,810) |
| $ | (32,398) |  |  | $ | (28,810) |
Summary of Reserves for Unrecognized Income Tax Benefits | The changes in the Company’s income tax reserves for gross unrecognized income tax benefits, including interest and penalties, are summarized as follows:
| Fiscal Years
| 2022 |  | 2021
Unrecognized tax benefits, beginning of period | $ | 7,467 |  |  | $ | 4,117 |
Increases for tax positions taken related to a prior period | 160 |  |  | 113 |
Increases for tax positions taken during the current period | 990 |  |  | 917 |
Increases for tax positions taken by an acquired company | 615 |  |  | 2,348 |
Decreases for tax positions taken related to a prior period | — |  |  | (27) |
Decreases for tax positions taken during current period | — |  |  | — |
Decreases for settlements of previously recognized positions | (92) |  |  | — |
Decreases as a result of a lapse of the applicable statute of limitations | (28) |  |  | (1) |
Unrecognized tax benefits, end of period | $ | 9,112 |  |  | $ | 7,467 |

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