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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Before Income Taxes

The following were the components of loss before income taxes:

	Fiscal Years Ended
(in millions of U.S. Dollars)	June 30, 2019				June 24, 2018				June 25, 2017
Domestic		($69.4	)			($50.4	)			($42.5	)
Foreign	24.2				32.8				35.4
Loss before income taxes		($45.2	)			($17.6	)			($7.1	)

Schedule of Components of Income Tax Expense

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

	Fiscal Years Ended
(in millions of U.S. Dollars)	June 30, 2019				June 24, 2018				June 25, 2017
Current:
Federal		$2.4				$36.0				$9.0
Foreign	10.1				4.5				6.0
State	0.3				1.1				0.5
Total current	12.8				41.6				15.5
Deferred:
Federal	(1.9		)		(45.8		)		59.4
Foreign	2.0				6.1				0.4
State	(0.2		)		(3.1		)		5.7
Total deferred	(0.1		)		(42.8		)		65.5
Income tax expense (benefit)		$12.7				($1.2	)			$81.0

Schedule of Effective Income Tax Rate and Amount Reconciliation

Actual income tax expense (benefit) differed from the amount computed by applying each period's U.S. federal statutory tax rate to pre-tax earnings as a result of the following:

	Fiscal Years Ended
(in millions of U.S. Dollars)	June 30, 2019				% of Loss			June 24, 2018				% of Loss			June 25, 2017				% of Loss
Federal income tax provision at statutory rate		($9.5	)		21	%			($5.0	)		28	%			($2.5	)		35	%
(Decrease) increase in income tax expense resulting from:
State tax provision, net of federal benefit	(1.4		)		3	%		(3.4		)		19	%		0.5				(7	)%
Tax exempt interest	(0.4		)		1	%		(1.2		)		7	%		(1.2		)		17	%
48C investment tax credit	—				—	%		(1.6		)		9	%		(3.8		)		54	%
Increase (decrease) in tax reserve	0.5				(1	)%		0.1				(1	)%		(3.3		)		46	%
Research and development credits	(3.9		)		9	%		(1.7		)		10	%		(1.3		)		18	%
Foreign tax credit	(0.5		)		1	%		(39.4		)		224	%		(0.2		)		3	%
Increase in valuation allowance	8.2				(18	)%		(24.5		)		139	%		93.3				(1,314	)%
Stock-based compensation	—				—	%		9.0				(51	)%		1.2				(17	)%
Statutory rate differences	1.9				(4	)%		(2.0		)		11	%		(5.0		)		70	%
Foreign earnings taxed in U.S.	0.9				(2	)%		52.1				(296	)%		0.6				(8	)%
Foreign currency fluctuations	0.7				(2	)%		(1.3		)		7	%		0.8				(11	)%
Other foreign adjustments	(0.1		)		0	%		(0.4		)		2	%		1.3				(18	)%
Net operating loss carryback	—				—	%		(0.1		)		1	%		0.5				(7	)%
Provision to return adjustments	11.8				(26	)%		—				—	%		0.2				(3	)%
Tax on distributable foreign earnings	1.0				(2	)%		5.4				(31	)%		—				—	%
Impact of rate changes	2.7				(6	)%		11.2				(64	)%		—				—	%
Expiration of state credits	1.2				(3	)%		1.3				(7	)%		—				—	%
Other	(0.4		)		1	%		0.3				(2	)%		(0.1		)		1	%
Income tax expense (benefit)		$12.7			(28	)%			($1.2	)		7	%			$81.0			(1,141	)%

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 millions of U.S. Dollars)	June 30, 2019				June 24, 2018
Deferred tax assets:
Compensation		$9.6				$3.3
Inventories	14.6				16.7
Sales return reserve and allowance for bad debts	3.2				6.6
Warranty reserve	0.3				8.2
Federal and state net operating loss carryforwards	137.1				10.1
Federal credits	20.0				49.1
State credits	2.9				3.5
48C investment tax credits	25.9				28.0
Investments	—				0.7
Stock-based compensation	11.3				21.3
Deferred revenue	22.6				2.6
Other	4.3				1.6
Total gross deferred assets	251.8				151.7
Less valuation allowance	(185.2		)		(127.4		)
Deferred tax assets, net	66.6				24.3
Deferred tax liabilities:
Property and equipment	(20.1		)		(15.1		)
Intangible assets	(16.9		)		(2.3		)
Investments	(0.9		)		(0.9		)
Foreign earnings recapture	(2.0		)		(1.9		)
Taxes on unremitted foreign earnings	(2.4		)		(1.4		)
Convertible notes	(20.7		)		—
Total gross deferred liability	(63.0		)		(21.6		)
Deferred tax asset, net		$3.6				$2.7

Schedule of 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: 

	Balance at June 30, 2019
(in millions of U.S. Dollars)	Assets				Liabilities
U.S. federal income taxes		$—				$—
Foreign income taxes	5.6				(2.0		)
Total		$5.6				($2.0	)

 

	Balance at June 24, 2018
(in millions of U.S. Dollars)	Assets				Liabilities
U.S. federal income taxes		$—				($2.1	)
Foreign income taxes	5.8				(1.0		)
Total		$5.8				($3.1	)

Schedule of Reconciliation of the Change in Uncertain Tax Positions

The following is a tabular reconciliation of the Company’s change in uncertain tax positions:

	Fiscal Years Ended
(in millions of U.S. Dollars)	June 30, 2019				June 24, 2018				June 25, 2017
Balance at beginning of period		$8.6				$13.3				$17.7
Decrease related to current year change in law	—				(4.7		)		—
Increases related to prior year tax positions	0.5				0.6				—
Decreases related to prior year tax positions	—				(0.1		)		(0.1		)
Settlements with tax authorities	—				(0.1		)		(0.6		)
Expiration of statute of limitations for assessment of taxes	(0.9		)		(0.4		)		(3.7		)
Balance at end of period		$8.2				$8.6				$13.3

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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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