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Income Taxes (Tables) | 12 Months Ended
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Jun. 29, 2014
Income Tax Disclosure [Abstract] |
Components of Income Before Income Taxes | The following were the components of income before income taxes (in thousands):
| Fiscal Years Ended
| June 29, 2014 |  | June 30, 2013 |  | June 24, 2012
Domestic |  | $58,859 |  |  |  | $31,046 |  |  |  | ($5,360 | )
Foreign | 88,711 |  |  | 76,511 |  |  | 53,007 |
Total income before income taxes |  | $147,570 |  |  |  | $107,557 |  |  |  | $47,647 |
Components of Income Tax Expense | The following were the components of income tax expense (in thousands):
| Fiscal Years Ended
| June 29, 2014 |  | June 30, 2013 |  | June 24, 2012
Current: |  |  |  |  |
Federal |  | $3,423 |  |  |  | $483 |  |  |  | ($4,031 | )
Foreign | 15,371 |  |  | 18,127 |  |  | 13,125 |
State | 1,876 |  |  | 1,777 |  |  | 566 |
Total current | 20,670 |  |  | 20,387 |  |  | 9,660 |
Deferred: |  |  |  |  |
Federal | 229 |  |  | 2,226 |  |  | (4,786 | )
Foreign | 3,003 |  |  | (177 | ) |  | (450 | )
State | (523 | ) |  | (1,804 | ) |  | (1,189 | )
Total deferred | 2,709 |  |  | 245 |  |  | (6,425 | )
Income tax expense |  | $23,379 |  |  |  | $20,632 |  |  |  | $3,235 |
Schedule of Effective Income Tax Rate and Amount Reconciliation | Actual income tax expense differed from the amount computed by applying the U.S. federal tax rate of 35% to pre-tax earnings as a result of the following (in thousands, except percentages):
| Fiscal Years Ended
| June 29, 2014 |  | % of Income |  | June 30, 2013 |  | % of Income |  | June 24, 2012 |  | % of Income
Federal income tax provision at statutory rate |  | $51,645 |  |  | 35% |  |  | $37,645 |  |  | 35% |  |  | $16,676 |  |  | 35%
Increase (decrease) in income tax expense resulting from: |  |  |  |  |  |  |  |  |  |  |
State tax provision, net of federal benefit | 2,550 |  |  | 2% |  | 1,146 |  |  | 1% |  | 68 |  |  | 0%
State tax credits | (1,004 | ) |  | (1)% |  | (1,407 | ) |  | (1)% |  | (1,028 | ) |  | (2)%
Tax exempt interest | (815 | ) |  | 0% |  | (853 | ) |  | (1)% |  | (1,064 | ) |  | (2)%
48C investment tax credit | (11,310 | ) |  | (8)% |  | (5,252 | ) |  | (5)% |  | (4,105 | ) |  | (9)%
Increase (decrease) in tax reserve | 15,411 |  |  | 10% |  | (361 | ) |  | 0% |  | (2,677 | ) |  | (6)%
Change in tax depreciation methodology | (18,475 | ) |  | (12)% |  | — |  |  | 0% |  | — |  |  | 0%
Research and development credits | (1,574 | ) |  | (1)% |  | (2,426 | ) |  | (2)% |  | (694 | ) |  | (1)%
Decrease in valuation allowance | (20 | ) |  | 0% |  | (6 | ) |  | 0% |  | (13 | ) |  | 0%
Qualified production activities deduction | (2,362 | ) |  | (1)% |  | (866 | ) |  | (1)% |  | (177 | ) |  | (1)%
Stock-based compensation | 2,024 |  |  | 1% |  | 1,206 |  |  | 1% |  | 336 |  |  | 1%
Statutory rate differences | (14,285 | ) |  | (10)% |  | (10,184 | ) |  | (10)% |  | (5,830 | ) |  | (12)%
Other | 1,594 |  |  | 1% |  | 1,990 |  |  | 2% |  | 1,743 |  |  | 4%
Income tax expense |  | $23,379 |  |  | 16% |  |  | $20,632 |  |  | 19% |  |  | $3,235 |  |  | 7%
Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows (in thousands):
| June 29, 2014 |  | June 30, 2013
Deferred tax assets: |  |  |
Compensation |  | $4,843 |  |  |  | $3,868 |
Inventories | 18,672 |  |  | 16,050 |
Sales return reserve and allowance for bad debts | 4,801 |  |  | 4,483 |
Warranty reserve | 1,416 |  |  | 947 |
Federal and state net operating loss carryforwards | 704 |  |  | 617 |
Federal credits | 4,971 |  |  | 3,174 |
State credits | 3,016 |  |  | 4,215 |
48C investment tax credits | 22,731 |  |  | 7,216 |
Investments | 958 |  |  | 976 |
Stock-based compensation | 31,102 |  |  | 27,142 |
Deferred revenue | 5,719 |  |  | — |
Other | 876 |  |  | 1,209 |
Total gross deferred assets | 99,809 |  |  | 69,897 |
Less valuation allowance | (1,571 | ) |  | (1,604 | )
Deferred tax assets, net | 98,238 |  |  | 68,293 |
Deferred tax liabilities: |  |  |
Property and equipment | (25,660 | ) |  | (27,484 | )
Intangible assets | (52,462 | ) |  | (37,921 | )
Investments | (1,792 | ) |  | 154 |
Prepaid taxes and other | (1,083 | ) |  | (997 | )
Total gross deferred liability | (80,997 | ) |  | (66,248 | )
Deferred tax asset, net |  | $17,241 |  |  |  | $2,045 |
Components Giving Rise to Net Deferred Tax Assets (Liabilities) Included in Accompanying Consolidated Balance Sheet | The components giving rise to the net deferred tax assets (liabilities) have been included in the Consolidated Balance Sheets as follows (in thousands):
| Balance at June 29, 2014
| Assets |  | Liabilities
| Current |  | Noncurrent |  | Current |  | Noncurrent
U.S. federal income taxes |  | $17,324 |  |  |  | $— |  |  |  | $— |  |  |  | ($10,948 | )
Hong Kong and other income taxes | 12,090 |  |  | — |  |  | — |  |  | (1,225 | )
Total net deferred tax assets/(liabilities) |  | $29,414 |  |  |  | $— |  |  |  | $— |  |  |  | ($12,173 | )
| Balance at June 30, 2013
| Assets |  | Liabilities
| Current |  | Noncurrent |  | Current |  | Noncurrent
U.S. federal income taxes |  | $15,707 |  |  |  | $— |  |  |  | $— |  |  |  | ($25,504 | )
Hong Kong and other income taxes | 10,418 |  |  | 1,424 | * |  | — |  |  | — |
Total net deferred tax assets/(liabilities) |  | $26,125 |  |  |  | $1,424 |  |  |  | $— |  |  |  | ($25,504 | )
* | This amount is included in Other assets in the Consolidated Balance Sheets.
Reconciliation of the Change in Uncertain Tax Positions | The following is a tabular reconciliation of the Company’s change in uncertain tax positions (in thousands):
| Fiscal Years Ended
| June 29, 2014 |  | June 30, 2013 |  | June 24, 2012
Balance at beginning of period |  | $2,732 |  |  |  | $4,421 |  |  |  | $6,987 |
Increases related to prior year tax positions | 18,040 |  |  | 546 |  |  | — |
Decreases related to prior year tax positions | (741 | ) |  | — |  |  | (1,966 | )
Expiration of statute of limitations for assessment of taxes | (1,642 | ) |  | (2,235 | ) |  | (600 | )
Balance at end of period |  | $18,389 |  |  |  | $2,732 |  |  |  | $4,421 |
The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the Income tax expense line item in the Consolidated Statements of Income. Total interest and penalties accrued were as follows (in thousands):
| June 29, 2014 |  | June 30, 2013
Accrued interest and penalties |  | $104 |  |  |  | $154 |
Total interest and penalties recognized were as follows (in thousands):
| Fiscal Years Ended
| June 29, 2014 |  | June 30, 2013 |  | June 24, 2012
Recognized interest and penalties (benefit) |  | ($51 | ) |  |  | ($130 | ) |  |  | ($292 | )

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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 + Details
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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of 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 (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 + Details
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