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Income Taxes (Tables)

12 Months Ended

Jun. 26, 2016

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 26, 2016				June 28, 2015				June 29, 2014
Domestic		($45,278	)			($41,593	)			$57,867
Foreign	21,772				(42,346		)		88,664
Total (loss) income before income taxes		($23,506	)			($83,939	)			$146,531

Components of Income Tax Expense

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

	Fiscal Years Ended
	June 26, 2016				June 28, 2015				June 29, 2014
Current:
Federal		$5,347				($12,470	)			$3,423
Foreign	7,278				13,327				15,371
State	1,244				1,242				1,876
Total current	13,869				2,099				20,670
Deferred:
Federal	(26,086		)		(7,418		)		(88		)
Foreign	12,340				(12,754		)		3,003
State	(2,093		)		(1,174		)		(544		)
Total deferred	(15,839		)		(21,346		)		2,371
Income tax (benefit) expense		($1,970	)			($19,247	)			$23,041

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 26, 2016				% of Loss		June 28, 2015				% of Loss		June 29, 2014				% of Income
Federal income tax provision at statutory rate		($8,227	)		35%			($29,379	)		35%			$51,286			35%
(Decrease) increase in income tax expense resulting from:
State tax provision, net of federal benefit	(748		)		3%		(817		)		1%		2,530				2%
State tax credits	(269		)		1%		(585		)		1%		(1,004		)		(1)%
Tax exempt interest	(2,019		)		9%		(2,413		)		3%		(815		)		(1)%
48C investment tax credit	(4,334		)		18%		(6,826		)		8%		(11,310		)		(8)%
(Decrease) increase in tax reserve	(80		)		—%		(225		)		—%		15,411				11%
Change in tax depreciation methodology	—				—%		—				—%		(18,475		)		(12)%
Research and development credits	(2,138		)		9%		(2,081		)		2%		(1,574		)		(1)%
Foreign tax credit	(954		)		4%		(389		)		—%		(490		)		—%
Increase (decrease) in valuation allowance	9,286				(39)%		—				—%		(20		)		—%
Qualified production activities deduction	—				—%		(520		)		1%		(2,362		)		(1)%
Stock-based compensation	1,346				(6)%		2,988				(4)%		2,024				1%
Statutory rate differences	2,748				(12)%		18,738				(22)%		(14,285		)		(10)%
Foreign earnings taxed in U.S.	1,165				(5)%		1,793				(2)%		—				—%
Foreign currency fluctuations	748				(3)%		(818		)		1%		(20		)		—%
Other	1,506				(6)%		1,287				(1)%		2,145				1%
Income tax (benefit) expense		($1,970	)		8%			($19,247	)		23%			$23,041			16%

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 26, 2016				June 28, 2015
Deferred tax assets:
Compensation		$3,176				$1,864
Inventories	19,656				23,172
Sales return reserve and allowance for bad debts	6,615				8,266
Warranty reserve	8,013				5,042
Federal and state net operating loss carryforwards	11,443				7,237
Federal credits	8,802				3,688
State credits	3,286				2,573
48C investment tax credits	17,838				14,980
Investments	872				953
Stock-based compensation	48,191				40,291
Deferred revenue	4,159				4,850
Other	2,792				2,034
Total gross deferred assets	134,843				114,950
Less valuation allowance	(10,770		)		(1,485		)
Deferred tax assets, net	124,073				113,465
Deferred tax liabilities:
Property and equipment	(9,549		)		(13,337		)
Intangible assets	(69,355		)		(57,819		)
Investments	(2,445		)		(505		)
Prepaid taxes and other	(1,527		)		(1,350		)
Foreign earnings recapture	(3,576		)		(2,524		)
Total gross deferred liability	(86,452		)		(75,535		)
Deferred tax asset, net		$37,621				$37,930

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 26, 2016
	Assets								Liabilities
	Current				Noncurrent				Current				Noncurrent
U.S. federal income taxes		$—				$26,411				$—				$—
Foreign income taxes	—				12,153				—				(943		)
Total net deferred tax assets/(liabilities)		$—				$38,564				$—				($943	)

	Balance at June 28, 2015
	Assets								Liabilities
	Current				Noncurrent				Current				Noncurrent
U.S. federal income taxes		$23,231				$52				$—				($8,915	)
Foreign income taxes	15,959				8,899				—				(1,296		)
Total net deferred tax assets/(liabilities)		$39,190				$8,951				$—				($10,211	)

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 26, 2016				June 28, 2015				June 29, 2014
Balance at beginning of period		$17,795				$18,389				$2,732
Increases related to prior year tax positions	617				—				18,040
Decreases related to prior year tax positions	(530		)		(407		)		(741		)
Expiration of statute of limitations for assessment of taxes	(155		)		(187		)		(1,642		)
Balance at end of period		$17,727				$17,795				$18,389

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 26, 2016				June 28, 2015
Accrued interest and penalties		($5	)			$10

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

	Fiscal Years Ended
	June 26, 2016				June 28, 2015				June 29, 2014
Recognized interest and penalties (benefit)		($15	)			($94	)			($51	)

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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 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.

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