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Income Taxes (Tables)

12 Months Ended

Jul. 03, 2021

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Taxes

The Company’s income (loss) before income taxes consisted of the following (in millions):

			Years Ended
			July 3, 2021						June 27, 2020						June 29, 2019
Domestic			$	(43.1)					$	(35.1)					$	(66.9)
Foreign			152.5						129.2						106.2
Income before income taxes			$	109.4					$	94.1					$	39.3

Schedule of Income Tax Expense (Benefit)

The Company’s income tax expense (benefit) consisted of the following (in millions):

			Years Ended
			July 3, 2021						June 27, 2020						June 29, 2019
Federal:
Current			$	—					$	—					$	—
Deferred			—						—						—
Total federal income tax expense			—						—						—
State:
Current			20.1						2.7						0.1
Deferred			—						—						—
Total state income tax expense			20.1						2.7						0.1
Foreign:
Current			44.8						50.1						33.3
Deferred			(1.6)						12.5						(1.9)
Total foreign income tax (benefit) expense			43.2						62.6						31.4
Total income tax expense			$	63.3					$	65.3					$	31.5

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Company’s income tax expense at the federal statutory rate to the income tax expense at the effective tax rate is as follows (in millions):

			Years Ended
			July 3, 2021						June 27, 2020						June 29, 2019
Income tax expense computed at federal statutory rate			$	23.0					$	19.8					$	8.3
Withholding Taxes			8.7						34.2						1.5
US Inclusion of foreign earnings			3.6						12.8						16.0
Valuation allowance			5.5						0.7						1.0
Foreign rate differential			3.9						4.5						4.8
Reserves			8.6						2.3						3.5
Permanent items			0.8						(0.3)						(1.4)
Fair value change of the earn-out liability			(1.5)						(6.6)						(1.3)
Reversal of previously accrued taxes			(2.1)						(3.7)						(1.2)
Research and experimentation benefits and other tax credits			(0.5)						(0.2)						—
State taxes			12.9						2.1						0.1
Other			0.4						(0.3)						0.2
Income tax expense			$	63.3					$	65.3					$	31.5

Schedule of Net Deferred Taxes

The components of the Company’s net deferred taxes consisted of the following (in millions):

			Balance as of
			July 3, 2021						June 27, 2020						June 29, 2019
Gross deferred tax assets:
Tax credit carryforwards			$	135.7					$	159.5					$	164.3
Net operating loss carryforwards			536.1						1,118.6						1,206.9
Capital loss carryforwards			1.1						63.9						63.9
Inventories			28.9						20.3						9.6
Accruals and reserves			66.5						61.6						55.6
Intangibles including acquisition-related items			632.4						45.1						42.1
Capitalized research costs			15.7						72.0						—
Other			66.1						44.6						43.1
Gross deferred tax assets			1,482.5						1,585.6						1,585.5
Valuation allowance			(1,295.9)						(1,405.5)						(1,405.3)
Deferred tax assets			186.6						180.1						180.2
Gross deferred tax liabilities:
Acquisition-related items			(29.1)						(31.8)						(33.5)
Tax on unrepatriated earnings			(18.4)						(15.6)						(1.8)
Foreign branch taxes			(22.3)						(21.4)						(22.0)
Other			(31.9)						(29.8)						(29.1)
Deferred tax liabilities			(101.7)						(98.6)						(86.4)
Total net deferred tax assets			$	84.9					$	81.5					$	93.8

Summary of Activity Of Deferred Tax Valuation Allowance

The following table provides information about the activity of our deferred tax valuation allowance (in millions):

Deferred Tax Valuation Allowance						Balance at Beginning of Period						Additions Charged to Expenses or Other Accounts (1)						Deductions Credited to Expenses or Other Accounts (2)						Balance at End of Period
Year Ended July 3, 2021						$	1,405.5					$	622.0					$	(731.6)					$	1,295.9
Year Ended June 27, 2020						$	1,405.3					$	95.1					$	(94.9)					$	1,405.5
Year Ended June 29, 2019						$	1,382.1					$	72.8					$	(49.6)					$	1,405.3

(1)Additions include current year additions charged to expenses and current year build due to increases in net deferred tax assets, return to provision true-ups, other adjustments.

(2)Deductions include current year releases credited to expenses and current year reductions due to decreases in net deferred tax assets, return to provision true-ups, other adjustments and increases in deferred tax liabilities

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits between June 30, 2018 and July 3, 2021 is as follows (in millions):

Balance at June 30, 2018			$	48.6
Additions based on tax positions related to current year			1.7
Additions based on tax positions related to prior year			7.3
Reduction based on tax positions related to prior year			(2.8)
Reductions for lapse of statute of limitations			(0.6)
Balance at June 29, 2019			54.2
Additions based on tax positions related to current year			2.2
Additions based on tax positions related to prior year			0.3
Reduction based on tax positions related to prior year			(3.8)
Reduction related to settlement			(0.4)
Reductions for lapse of statute of limitations			(0.5)
Balance at June 27, 2020			52.0
Additions based on tax positions related to current year			14.8
Reduction based on tax positions related to prior year			(6.8)
Reduction related to settlement			(0.5)
Reductions for lapse of statute of limitations			(0.4)
Balance at July 3, 2021			$	59.1

Schedule of Tax Years That Remain Subject To Examination

The following table summarizes the Company’s major tax jurisdictions and the tax years that remain subject to examination by such jurisdictions as of July 3, 2021:

Tax Jurisdictions			Tax Years
United States*			2002 and onward
Canada			2020 and onward
China			2016 and onward
France			2018 and onward
Germany			2016 and onward
Korea			2016 and onward
United Kingdom			2019 and onward

*Although the Company is generally subject to a three-year statute of limitations in the U.S., tax authorities maintain the ability to adjust tax attribute carryforwards generated in earlier years.

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