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Income Taxes (Tables)

12 Months Ended

Jun. 28, 2015

Income Tax Disclosure [Abstract]

Components of Income Before Income Taxes

The following were the components of (loss) income before income taxes (in thousands):

	Fiscal Years Ended
	June 28, 2015				June 29, 2014				June 30, 2013
Domestic		($40,603	)			$58,859				$31,046
Foreign	(42,299		)		88,711				76,511
Total (loss) income before income taxes		($82,902	)			$147,570				$107,557

Components of Income Tax Expense

The following were the components of income tax (benefit) expense (in thousands):

	Fiscal Years Ended
	June 28, 2015				June 29, 2014				June 30, 2013
Current:
Federal		($12,470	)			$3,423				$483
Foreign	13,327				15,371				18,127
State	1,242				1,876				1,777
Total current	2,099				20,670				20,387
Deferred:
Federal	(7,100		)		229				2,226
Foreign	(12,696		)		3,003				(177		)
State	(1,154		)		(523		)		(1,804		)
Total deferred	(20,950		)		2,709				245
Income tax (benefit) expense		($18,851	)			$23,379				$20,632

Schedule of Effective Income Tax Rate and Amount Reconciliation

Actual income tax (benefit) 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 28, 2015				% of Loss		June 29, 2014				% of Income		June 30, 2013				% of Income
Federal income tax provision at statutory rate		($29,016	)		35%			$51,645			35%			$37,645			35%
(Decrease) increase in income tax expense resulting from:
State tax provision, net of federal benefit	(797		)		1%		2,550				2%		1,146				1%
State tax credits	(585		)		1%		(1,004		)		(1)%		(1,407		)		(1)%
Tax exempt interest	(2,413		)		3%		(815		)		—%		(853		)		(1)%
48C investment tax credit	(6,826		)		8%		(11,310		)		(8)%		(5,252		)		(5)%
(Decrease) increase in tax reserve	(225		)		—%		15,411				10%		(361		)		—%
Change in tax depreciation methodology	—				—%		(18,475		)		(12)%		—				—%
Research and development credits	(2,081		)		3%		(1,574		)		(1)%		(2,426		)		(2)%
Decrease in valuation allowance	—				—%		(20		)		—%		(6		)		—%
Qualified production activities deduction	(520		)		1%		(2,362		)		(1)%		(866		)		(1)%
Stock-based compensation	2,988				(4)%		2,024				1%		1,206				1%
Statutory rate differences	18,732				(23)%		(14,285		)		(10)%		(10,184		)		(10)%
Foreign earnings taxed in U.S.	2,697				(3)%		—				—%		—				—%
Other	(805		)		1%		1,594				1%		1,990				2%
Income tax (benefit) expense		($18,851	)		23%			$23,379			16%			$20,632			19%

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 28, 2015				June 29, 2014
Deferred tax assets:
Compensation		$1,864				$4,843
Inventories	23,172				18,672
Sales return reserve and allowance for bad debts	8,266				4,801
Warranty reserve	5,042				1,416
Federal and state net operating loss carryforwards	7,237				704
Federal credits	3,688				4,971
State credits	2,573				3,016
48C investment tax credits	14,980				22,731
Investments	953				958
Stock-based compensation	40,291				31,102
Deferred revenue	4,850				5,719
Other	2,034				876
Total gross deferred assets	114,950				99,809
Less valuation allowance	(1,485		)		(1,571		)
Deferred tax assets, net	113,465				98,238
Deferred tax liabilities:
Property and equipment	(13,337		)		(25,660		)
Intangible assets	(59,840		)		(52,462		)
Investments	(505		)		(1,792		)
Prepaid taxes and other	(1,350		)		(1,083		)
Foreign earnings recapture	(2,524		)		—
Total gross deferred liability	(77,556		)		(80,997		)
Deferred tax asset, net		$35,909				$17,241

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 28, 2015
	Assets								Liabilities
	Current				Noncurrent				Current				Noncurrent
U.S. federal income taxes		$23,231				$52				$—				($10,878	)
Foreign income taxes	15,959				8,841				—				(1,296		)
Total net deferred tax assets/(liabilities)		$39,190				$8,893		*		$—				($12,174	)

	Balance at June 29, 2014
	Assets								Liabilities
	Current				Noncurrent				Current				Noncurrent
U.S. federal income taxes		$17,324				$—				$—				($10,948	)
Foreign income taxes	12,090				—				—				(1,225		)
Total net deferred tax assets/(liabilities)		$29,414				$—				$—				($12,173	)

* 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 28, 2015				June 29, 2014				June 30, 2013
Balance at beginning of period		$18,389				$2,732				$4,421
Increases related to prior year tax positions	—				18,040				546
Decreases related to prior year tax positions	(407		)		(741		)		—
Expiration of statute of limitations for assessment of taxes	(187		)		(1,642		)		(2,235		)
Balance at end of period		$17,795				$18,389				$2,732

The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the Income tax (benefit) expense line item in the Consolidated Statements of (Loss) Income. Total interest and penalties accrued were as follows (in thousands):

	June 28, 2015				June 29, 2014
Accrued interest and penalties		$10				$104

Total interest and penalties recognized were as follows (in thousands):

	Fiscal Years Ended
	June 28, 2015				June 29, 2014				June 30, 2013
Recognized interest and penalties (benefit)		($94	)			($51	)			($130	)

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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.

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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.

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