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Income Taxes (Tables) | 12 Months Ended
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Jul. 02, 2022
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 2, 2022 |  | July 3, 2021 |  | June 27, 2020
Domestic | $ | (82.6) |  |  | $ | (21.7) |  |  | $ | (14.9) |
Foreign | 147.7 |  |  | 152.5 |  |  | 129.2 |
Income before income taxes | $ | 65.1 |  |  | $ | 130.8 |  |  | $ | 114.3 |
Schedule of Income Tax Expense (Benefit) | The Company’s income tax expense (benefit) consisted of the following (in millions):
| Years Ended
| July 2, 2022 |  | July 3, 2021 |  | June 27, 2020
Federal: |  |  |  |  |
Current | $ | — |  |  | $ | — |  |  | $ | — |
Deferred | — |  |  | — |  |  | — |
Total federal income tax expense | — |  |  | — |  |  | — |
State: |  |  |  |  |
Current | (2.2) |  |  | 20.1 |  |  | 2.7 |
Deferred | — |  |  | — |  |  | — |
Total state income tax (benefit) expense | (2.2) |  |  | 20.1 |  |  | 2.7 |
Foreign: |  |  |  |  |
Current | 63.2 |  |  | 44.8 |  |  | 50.1 |
Deferred | (11.4) |  |  | (1.6) |  |  | 12.5 |
Total foreign income tax expense | 51.8 |  |  | 43.2 |  |  | 62.6 |
Total income tax expense | $ | 49.6 |  |  | $ | 63.3 |  |  | $ | 65.3 |
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 2, 2022 |  | July 3, 2021 |  | June 27, 2020
Income tax expense computed at federal statutory rate | $ | 13.7 |  |  | $ | 27.5 |  |  | $ | 24.0 |
Withholding Taxes | 8.7 |  |  | 8.7 |  |  | 34.2 |
U.S. Inclusion of foreign earnings | 19.8 |  |  | 3.6 |  |  | 12.8 |
Internal Intellectual Property Restructuring | 10.1 |  |  | 19.1 |  |  | — |
Valuation allowance | 3.3 |  |  | 1.0 |  |  | (3.5) |
Foreign rate differential | 6.9 |  |  | 3.9 |  |  | 4.5 |
Reserves | 1.7 |  |  | 1.5 |  |  | 2.3 |
Permanent items | 0.3 |  |  | (0.6) |  |  | (0.7) |
Fair value change of the earn-out liability | 0.1 |  |  | (1.5) |  |  | (6.6) |
Reversal of previously accrued taxes | (8.6) |  |  | (2.1) |  |  | (3.7) |
Research and experimentation benefits and other tax credits | (1.1) |  |  | (0.5) |  |  | (0.2) |
State taxes | 0.8 |  |  | 0.9 |  |  | 2.1 |
Disallowed compensations | 2.2 |  |  | 1.4 |  |  | 0.4 |
Senior Convertible Notes settlements | (8.3) |  |  | — |  |  | — |
Other | — |  |  | 0.4 |  |  | (0.3) |
Income tax expense | $ | 49.6 |  |  | $ | 63.3 |  |  | $ | 65.3 |
Schedule of Net Deferred Taxes | The components of the Company’s net deferred taxes consisted of the following (in millions):
| Balance as of
| July 2, 2022 |  | July 3, 2021 |  | June 27, 2020
Gross deferred tax assets: |  |  |  |  |
Tax credit carryforwards | $ | 136.7 |  |  | $ | 135.7 |  |  | $ | 159.5 |
Net operating loss carryforwards | 491.8 |  |  | 536.1 |  |  | 1,118.6 |
Capital loss carryforwards | 1.0 |  |  | 1.1 |  |  | 63.8 |
Inventories | 34.5 |  |  | 28.9 |  |  | 20.3 |
Accruals and reserves | 58.5 |  |  | 66.5 |  |  | 61.6 |
Intangibles including acquisition-related items | 603.6 |  |  | 632.4 |  |  | 45.2 |
Capitalized research costs | 100.3 |  |  | 15.7 |  |  | 72.0 |
Other | 45.7 |  |  | 65.9 |  |  | 44.1 |
Gross deferred tax assets | 1,472.1 |  |  | 1,482.3 |  |  | 1,585.1 |
Valuation allowance | (1,320.8) |  |  | (1,308.9) |  |  | (1,423.1) |
Deferred tax assets | 151.3 |  |  | 173.4 |  |  | 162.0 |
Gross deferred tax liabilities: |  |  |  |  |
Acquisition-related items | (31.9) |  |  | (29.1) |  |  | (31.8) |
Tax on unrepatriated earnings | (7.2) |  |  | (18.4) |  |  | (15.6) |
Foreign branch taxes | (17.8) |  |  | (22.2) |  |  | (21.4) |
Other | (17.6) |  |  | (18.7) |  |  | (11.7) |
Deferred tax liabilities | (74.5) |  |  | (88.4) |  |  | (80.5) |
Total net deferred tax assets | $ | 76.8 |  |  | $ | 85.0 |  |  | $ | 81.5 |
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 2, 2022 |  | $ | 1,308.9 |  |  | $ | 101.7 |  |  | $ | (89.8) |  |  | $ | 1,320.8 |
Year Ended July 3, 2021 |  | $ | 1,423.1 |  |  | $ | 617.5 |  |  | $ | (731.7) |  |  | $ | 1,308.9 |
Year Ended June 27, 2020 |  | $ | 1,427.9 |  |  | $ | 90.1 |  |  | $ | (94.9) |  |  | $ | 1,423.1 |
(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, and 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 29, 2019 and July 2, 2022 is as follows (in millions):
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 |
Additions based on tax positions related to current year | 0.4 |
Addition based on tax positions related to prior year | 2.6 |
Reduction based on tax positions related to prior year | (2.6) |
Reductions for lapse of statute of limitations | (6.1) |
Balance at July 2, 2022 | $ | 53.4 |
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 2, 2022:
Tax Jurisdictions | Tax Years
United States(1) | 2004 and onward
Canada | 2021 and onward
China | 2017 and onward
France | 2017 and onward
Germany | 2017 and onward
Korea | 2017 and onward
United Kingdom | 2020 and onward
(1) 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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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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