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Income Taxes (Tables)

12 Months Ended

Jun. 25, 2017

Income Tax Disclosure [Abstract]

Components of Income Before Income Taxes

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

	Fiscal Years Ended
	June 25, 2017				June 26, 2016				June 28, 2015
Domestic		($43,195	)			($45,278	)			($41,593	)
Foreign	38,531				21,772				(42,346		)
Total loss before income taxes		($4,664	)			($23,506	)			($83,939	)

Components of Income Tax Expense

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

	Fiscal Years Ended
	June 25, 2017				June 26, 2016				June 28, 2015
Current:
Federal		$10,304				$5,347				($12,470	)
Foreign	7,332				7,278				13,327
State	900				1,244				1,242
Total current	18,536				13,869				2,099
Deferred:
Federal	68,199				(26,086		)		(7,418		)
Foreign	190				12,340				(12,754		)
State	6,529				(2,093		)		(1,174		)
Total deferred	74,918				(15,839		)		(21,346		)
Income tax expense (benefit)		$93,454				($1,970	)			($19,247	)

Schedule of Effective Income Tax Rate and Amount Reconciliation

Actual income tax expense (benefit) 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 25, 2017				% of Loss		June 26, 2016				% of Loss		June 28, 2015				% of Income
Federal income tax provision at statutory rate		($1,632	)		35%			($8,227	)		35%			($29,379	)		35%
(Decrease) increase in income tax expense resulting from:
State tax provision, net of federal benefit	(727		)		16%		(748		)		3%		(817		)		1%
State tax credits	(69		)		1%		(269		)		1%		(585		)		1%
Tax exempt interest	(1,243		)		27%		(2,019		)		9%		(2,413		)		3%
48C investment tax credit	(4,383		)		94%		(4,334		)		18%		(6,826		)		8%
(Decrease) increase in tax reserve	(3,587		)		77%		(80		)		—%		(225		)		—%
Research and development credits	(1,728		)		37%		(2,138		)		9%		(2,081		)		2%
Foreign tax credit	(1,114		)		24%		(954		)		4%		(389		)		—%
Increase (decrease) in valuation allowance	108,077				(2,318)%		9,286				(39)%		—				—%
Qualified production activities deduction	—				—%		—				—%		(520		)		1%
Stock-based compensation	1,389				(30)%		1,346				(6)%		2,988				(4)%
Statutory rate differences	(5,162		)		111%		2,748				(12)%		18,738				(22)%
Foreign earnings taxed in U.S.	1,313				(28)%		1,165				(5)%		1,793				(2)%
Foreign currency fluctuations	841				(18)%		748				(3)%		(818		)		1%
Other foreign adjustments	715				(15)%		13				—%		(83		)		—%
Net operating loss carryback	494				(11)%		238				(1)%		—				—%
Provision to return adjustments	165				(4)%		(10		)		—%		391				—%
Other	105				(2)%		1,265				(5)%		979				(1)%
Income tax expense (benefit)		$93,454			(2,004)%			($1,970	)		8%			($19,247	)		23%

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 25, 2017				June 26, 2016
Deferred tax assets:
Compensation		$3,029				$3,176
Inventories	21,042				19,656
Sales return reserve and allowance for bad debts	8,480				6,615
Warranty reserve	10,340				8,013
Federal and state net operating loss carryforwards	21,776				11,443
Federal credits	13,425				8,802
State credits	3,507				3,286
48C investment tax credits	23,525				17,838
Investments	796				872
Stock-based compensation	46,922				48,191
Deferred revenue	3,262				4,159
Other	2,522				2,792
Total gross deferred assets	158,626				134,843
Less valuation allowance	(107,544		)		(10,770		)
Deferred tax assets, net	51,082				124,073
Deferred tax liabilities:
Property and equipment	(7,443		)		(9,549		)
Intangible assets	(73,692		)		(69,355		)
Investments	(4,102		)		(2,445		)
Prepaid taxes and other	(1,461		)		(1,527		)
Foreign earnings recapture	(2,481		)		(3,576		)
Total gross deferred liability	(89,179		)		(86,452		)
Deferred tax (liability) asset, net		($38,097	)			$37,621

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 25, 2017
	Assets								Liabilities
	Current				Noncurrent				Current				Noncurrent
U.S. federal income taxes		$—				$—				$—				($49,103	)
Foreign income taxes	—				11,763				—				(757		)
Total net deferred tax assets/(liabilities)		$—				$11,763				$—				($49,860	)

	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	)

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 25, 2017				June 26, 2016				June 28, 2015
Balance at beginning of period		$17,727				$17,795				$18,389
Increases related to prior year tax positions	—				617				—
Decreases related to prior year tax positions	(100		)		(530		)		(407		)
Settlements with tax authorities	(608		)		—				—
Expiration of statute of limitations for assessment of taxes	(3,681		)		(155		)		(187		)
Balance at end of period		$13,338				$17,727				$17,795

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

	June 25, 2017				June 26, 2016
Accrued interest and penalties		$2				($5	)

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

	Fiscal Years Ended
	June 25, 2017				June 26, 2016				June 28, 2015
Recognized interest and penalties (benefit)		$7				($15	)			($94	)

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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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