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v3.22.2.2

Income Taxes (Tables) | 12 Months Ended
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Jun. 25, 2022
Income Tax Disclosure [Abstract] |
Tabular Disclosure of Income (Loss) Before Income Tax Between Domestic and Foreign Jurisdictions | Income/(loss) before provision for income taxes for fiscal 2022, 2021, and 2020 consisted of the following (in millions):
|  | 2022 |  |  | 2021 |  |  | 2020 |
United States |  | $ | (44.8 | ) |  | $ | (21.0 | ) |  | $ | (13.5 | )
Foreign |  |  | 365.3 |  |  |  | 141.1 |  |  |  | 172.9 |
Income before provision for income taxes |  | $ | 320.5 |  |  | $ | 120.1 |  |  | $ | 159.4 |
Provision for Income Taxes | The provision for income taxes for fiscal 2022, 2021, and 2020 consisted of the following (in millions):
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current tax expense/(benefit) |  |  |  |  |  |  |  |  |
Federal |  | $ | (0.6 | ) |  | $ | 4.1 |  |  | $ | 0.8 |
State |  |  | — |  |  |  | 0.1 |  |  |  | — |
Foreign |  |  | 94.9 |  |  |  | 36.1 |  |  |  | 35.4 |
|  |  | 94.3 |  |  |  | 40.3 |  |  |  | 36.2 |
Deferred tax expense/(benefit) |  |  |  |  |  |  |  |  |
Federal |  |  | (21.8 | ) |  |  | (0.5 | ) |  |  | (5.8 | )
State |  |  | - |  |  |  | - |  |  |  | 0.1 |
Foreign |  |  | (7.9 | ) |  |  | (8.4 | ) |  |  | 8.1 |
|  |  | (29.7 | ) |  |  | (8.9 | ) |  |  | 2.4 |
Provision for income taxes |  | $ | 64.6 |  |  | $ | 31.4 |  |  | $ | 38.6 |
Provision for Income Taxes Differs from Federal Statutory Rate | The provision for income taxes differs from the federal statutory rate for fiscal 2022, 2021, and 2020 as follows (in millions):
|  | 2022 |  |  | 2021 |  |  | 2020 |
Provision at U.S. federal statutory tax rate |  | $ | 67.3 |  |  | $ | 25.1 |  |  | $ | 33.5 |
State income taxes |  |  | — |  |  |  | 0.1 |  |  |  | — |
Non-deductible share-based compensation |  |  | 7.9 |  |  |  | 5.2 |  |  |  | 3.0 |
(Windfall)/shortfall related to share-based compensation |  |  | (18.1 | ) |  |  | (3.8 | ) |  |  | 2.1 |
Non-deductible officer compensation |  |  | 6.4 |  |  |  | 6.4 |  |  |  | 1.9 |
Business credits |  |  | (10.0 | ) |  |  | (3.8 | ) |  |  | (6.1 | )
Foreign tax differential |  |  | 6.4 |  |  |  | (6.7 | ) |  |  | 4.9 |
Foreign income inclusion |  |  | 3.6 |  |  |  | 5.2 |  |  |  | 0.7 |
Deferred taxes on unremitted foreign earnings |  |  | 0.7 |  |  |  | 3.5 |  |  |  | — |
Other differences |  |  | 0.4 |  |  |  | 0.2 |  |  |  | (1.4 | )
Provision for income taxes |  | $ | 64.6 |  |  | $ | 31.4 |  |  | $ | 38.6 |
Significant Components of Deferred Tax Assets (Liabilities) | Significant components of our deferred tax assets (liabilities) as of the end of fiscal 2022 and 2021 consisted of the following (in millions):
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |
Capital loss carryforward |  | $ | 17.8 |  |  | $ | 0.2 |
Inventory write downs |  |  | 2.6 |  |  |  | 3.9 |
Property and equipment and intangible assets |  |  | 11.7 |  |  |  | 6.0 |
Share-based compensation |  |  | 12.0 |  |  |  | 8.8 |
Nondeductible interest |  |  | 5.4 |  |  |  | — |
Business credit carryforward |  |  | 62.0 |  |  |  | 39.1 |
Lease liabilities |  |  | 11.2 |  |  |  | 6.5 |
Net operating loss carryforward |  |  | 16.3 |  |  |  | 7.2 |
Other accruals |  |  | 5.6 |  |  |  | 5.1 |
|  |  | 144.6 |  |  |  | 76.8 |
Valuation allowance |  |  | (59.0 | ) |  |  | (32.6 | )
|  |  | 85.6 |  |  |  | 44.2 |
Deferred tax liabilities: |  |  |  |  |  |
Property and equipment |  |  | (2.0 | ) |  |  | (0.9 | )
Interest |  |  | — |  |  |  | (3.4 | )
Right-of-use assets |  |  | (11.5 | ) |  |  | (6.2 | )
Unremitted foreign earnings |  |  | (22.1 | ) |  |  | (3.5 | )
Acquisition intangibles |  |  | (45.8 | ) |  |  | (29.0 | )
|  |  | (81.4 | ) |  |  | (43.0 | )
Net deferred tax assets |  | $ | 4.2 |  |  | $ | 1.2 |
Reconciliation of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of gross unrecognized tax benefits for fiscal 2022, 2021, and 2020 consisted of the following (in millions):
|  | 2022 |  |  | 2021 |  |  | 2020 |
Beginning balance |  | $ | 22.6 |  |  | $ | 20.1 |  |  | $ | 18.9 |
Increase in unrecognized tax benefits related to current year tax positions |  |  | 7.1 |  |  |  | 5.5 |  |  |  | 3.2 |
Increase in unrecognized tax benefits related to prior year tax positions |  |  | 5.5 |  |  |  | — |  |  |  | 0.1 |
Remeasurement of unrecognized tax benefits |  |  | (0.5 | ) |  |  | — |  |  |  | — |
Decrease due to statute expiration |  |  | (4.9 | ) |  |  | (3.0 | ) |  |  | (2.1 | )
Ending Balance |  | $ | 29.8 |  |  | $ | 22.6 |  |  | $ | 20.1 |

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