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Income Taxes (Tables)

12 Months Ended

Jun. 24, 2018

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 24, 2018				June 25, 2017				June 26, 2016
Domestic		($348,117	)			($43,195	)			($45,278	)
Foreign	30,672				38,531				21,772
Total loss before income taxes		($317,445	)			($4,664	)			($23,506	)

Components of Income Tax Expense

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

	Fiscal Years Ended
	June 24, 2018				June 25, 2017				June 26, 2016
Current:
Federal		($2,263	)			$10,304				$5,347
Foreign	5,670				7,332				7,278
State	576				900				1,244
Total current	3,983				18,536				13,869
Deferred:
Federal	(44,070		)		68,199				(26,086		)
Foreign	5,536				190				12,340
State	(2,971		)		6,529				(2,093		)
Total deferred	(41,505		)		74,918				(15,839		)
Income tax (benefit) expense		($37,522	)			$93,454				($1,970	)

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 28.3% to pre-tax earnings as a result of the following (in thousands, except percentages):

	Fiscal Years Ended
	June 24, 2018				% of Loss		June 25, 2017				% of Loss		June 26, 2016				% of Income
Federal income tax provision at statutory rate		($89,863	)		28.3%			($1,632	)		35%			($8,227	)		35%
(Decrease) increase in income tax expense resulting from:
State tax provision, net of federal benefit	(7,148		)		2%		(727		)		16%		(748		)		3%
State tax credits	(82		)		—%		(69		)		1%		(269		)		1%
Tax exempt interest	(1,182		)		—%		(1,243		)		27%		(2,019		)		9%
48C investment tax credit	(1,732		)		1%		(4,383		)		94%		(4,334		)		18%
Increase (decrease) in tax reserve	116				—%		(3,587		)		77%		(80		)		—%
Research and development credits	(2,168		)		1%		(1,728		)		37%		(2,138		)		9%
Foreign tax credit	(39,951		)		13%		(1,114		)		24%		(954		)		4%
Increase in valuation allowance	17,334				(5)%		108,077				(2,318)%		9,286				(39)%
Stock-based compensation	9,238				(3)%		1,389				(30)%		1,346				(6)%
Statutory rate differences	(2,255		)		1%		(5,162		)		111%		2,748				(12)%
Foreign earnings taxed in U.S.	52,699				(17)%		1,313				(28)%		1,165				(5)%
Foreign currency fluctuations	(1,288		)		—%		841				(18)%		748				(3)%
Other foreign adjustments	(554		)		—%		715				(15)%		13				—%
Net operating loss carryback	(138		)		—%		494				(11)%		238				(1)%
Provision to return adjustments	(41		)		—%		165				(4)%		(10		)		—%
Tax on distributable foreign earnings	5,408				(2)%		—				—%		—				—%
Impact of rate changes	11,183				(4)%		—				—%		—				—%
Expiration of state credits	1,350				—%		—				—%		—				—%
Goodwill impairment	11,060				(3)%		—				—%		—				—%
Other	492				—%		105				(2)%		1,265				(5)%
Income tax (benefit) expense		($37,522	)		12%			$93,454			(2,004)%			($1,970	)		8%

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 24, 2018				June 25, 2017
Deferred tax assets:
Compensation		$3,259				$3,029
Inventories	16,868				21,042
Sales return reserve and allowance for bad debts	6,927				8,480
Warranty reserve	8,406				10,340
Federal and state net operating loss carryforwards1	10,124				19,122
Federal credits	49,054				13,425
State credits	3,521				3,507
48C investment tax credits	28,007				23,525
Investments	695				796
Stock-based compensation	21,341				46,922
Deferred revenue	2,613				3,262
Other	1,552				2,522
Total gross deferred assets	152,367				155,972
Less valuation allowance	(127,443		)		(107,544		)
Deferred tax assets, net	24,924				48,428
Deferred tax liabilities:
Property and equipment	(15,052		)		(7,443		)
Intangible assets	(2,279		)		(73,692		)
Investments1	—				(1,448		)
Prepaid taxes and other	(902		)		(1,461		)
Foreign earnings recapture	(1,888		)		(2,481		)
Taxes on unremitted foreign earnings	(1,408		)		—
Total gross deferred liability	(21,529		)		(86,525		)
Deferred tax asset (liability), net		$3,395				($38,097	)

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 24, 2018
	Assets								Liabilities
	Current				Noncurrent				Current				Noncurrent
U.S. federal income taxes		$—				$—				$—				($2,061	)
Foreign income taxes	—				6,451				—				(995		)
Total net deferred tax assets (liabilities)		$—				$6,451				$—				($3,056	)

	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	)

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 24, 2018				June 25, 2017				June 26, 2016
Balance at beginning of period		$13,338				$17,727				$17,795
Decrease related to current year change in law	(4,731		)		—				—
Increases related to prior year tax positions	634				—				617
Decreases related to prior year tax positions	(73		)		(100		)		(530		)
Settlements with tax authorities	(54		)		(608		)		—
Expiration of statute of limitations for assessment of taxes	(369		)		(3,681		)		(155		)
Balance at end of period		$8,745				$13,338				$17,727

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 24, 2018				June 25, 2017
Accrued interest and penalties		$25				$2

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

	Fiscal Years Ended
	June 24, 2018				June 25, 2017				June 26, 2016
Recognized interest and penalties (benefit)		$23				$7				($15	)

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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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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