XML 56 R38.htm IDEA: XBRL DOCUMENT v3.24.2.u1

Income Taxes (Tables)

12 Months Ended

Jun. 29, 2024

Income Tax Disclosure [Abstract]

Tabular Disclosure of Income (Loss) Before Income Tax Between Domestic and Foreign Jurisdictions

(Loss)/Income before provision for income taxes for fiscal 2024, 2023, and 2022 consisted of the following (in millions):

		2024				2023				2022
United States		$	(80.5	)		$	(69.5	)		$	(44.8	)
Foreign			(44.1	)			195.5				365.3
(Loss)/Income before provision for income taxes		$	(124.6	)		$	126.0			$	320.5

Provision for Income Taxes

The (benefit)/provision for income taxes for fiscal 2024, 2023, and 2022 consisted of the following (in millions):

		2024				2023				2022
Current tax (benefit)/expense
Federal		$	(17.4	)		$	15.8			$	(0.6	)
State			—				0.1				—
Foreign			56.0				62.4				94.9
			38.6				78.3				94.3
Deferred tax (benefit)/expense
Federal			(280.8	)			(12.7	)			(21.8	)
State			—				—				—
Foreign			(8.0	)			(13.2	)			(7.9	)
			(288.8	)			(25.9	)			(29.7	)
(Benefit)/provision for income taxes		$	(250.2	)		$	52.4			$	64.6

Provision for Income Taxes Differs from Federal Statutory Rate

The provision for income taxes differs from the federal statutory rate for fiscal 2024, 2023, and 2022 as follows (in millions):

		2024				2023				2022
(Benefit)/provision at U.S. federal statutory tax rate		$	(26.2	)		$	26.4			$	67.3
Non-deductible share-based compensation			7.6				6.6				7.9
Shortfall/(windfall) related to share-based compensation			3.5				(1.3	)			(18.1	)
Non-deductible officer compensation			4.8				6.4				6.5
Business credits			(5.2	)			(5.2	)			(10.0	)
Foreign tax differential			45.2				(0.5	)			6.4
U.S. inclusion of foreign income			(0.3	)			21.0				3.6
Deferred taxes on unremitted foreign earnings			—				0.3				0.7
U.S. provision to return adjustment (1)			(18.1	)			0.4				(3.2	)
Deferred tax benefit from domestication (2)			(262.8	)			—				—
Other differences			1.3				(1.7	)			3.5
(Benefit)/provision for income taxes		$	(250.2	)		$	52.4			$	64.6

(1)U.S. provision to return adjustment in fiscal 2024 was primarily driven by approximately $11.3 million tax benefit from foreign tax credit relief under U.S. Treasury Notice 2023-55 issued in July 2023, together with a tax benefit of

approximately $6.3 million recognized as part of a multiyear research and development tax credit study completed in fiscal 2024.

(2)On June 29, 2024, we completed an intra-group transfer that involved the domestication of certain foreign subsidiaries and the migration of certain foreign intellectual property to the United States. See further discussion below.

Significant Components of Deferred Tax Assets (Liabilities)

Significant components of our deferred tax assets (liabilities) as of the end of fiscal 2024 and 2023 consisted of the following (in millions):

		2024				2023
Deferred tax assets:
Capital loss carryforward		$	34.1			$	34.1
Inventory write downs			1.6				1.9
Intangibles and capitalized research and development costs			273.1				41.5
Share-based compensation			9.4				10.3
Nondeductible interest			23.7				4.9
Lease liabilities			10.2				10.1
Business credit carryforward			95.6				45.1
Net operating loss carryforward			11.4				10.8
Other accruals			5.8				5.1
			464.9				163.8
Valuation allowance			(92.4	)			(78.4	)
			372.5				85.4
Deferred tax liabilities:
Property and equipment			—				(1.3	)
Right-of-use assets			(9.5	)			(9.5	)
Unremitted foreign earnings			(14.3	)			(14.3	)
Acquisition intangibles			(31.0	)			(31.4	)
			(54.8	)			(56.5	)
Net deferred tax assets		$	317.7			$	28.9

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending balance of gross unrecognized tax benefits for fiscal 2024, 2023, and 2022 consisted of the following (in millions):

		2024				2023				2022
Beginning balance		$	43.7			$	29.8			$	22.6
Increase in unrecognized tax benefits related to current year tax positions			10.4				13.7				7.1
(Decrease)/increase in unrecognized tax benefits related to prior year tax positions			(5.3	)			2.5				5.5
Decrease due to effective settlement with tax authorities			—				(1.1	)			—
Remeasurement of unrecognized tax benefits			(1.0	)			(0.3	)			(0.5	)
Decrease due to statute expiration			(1.3	)			(0.9	)			(4.9	)
Ending Balance		$	46.5			$	43.7			$	29.8

X

- References

No definition available.

+ Details

Name:	us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Paragraph 9
-Section 50
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-9

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Paragraph 2
-Section 50
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-2

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Paragraph 12
-Section 50
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-12

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(1)(Note 1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the change in unrecognized tax benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 217
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482663/740-10-55-217

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration