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v3.22.2.2

Income Taxes (Tables) | 12 Months Ended
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Jun. 26, 2022
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 26, 2022 |  | June 27, 2021 |  | June 28, 2020
Domestic | ($289.1) |  |  | ($348.7) |  |  | ($210.3) |
Foreign | 3.0 |  |  | 8.5 |  |  | 4.7 |
Loss before income taxes | ($286.1) |  |  | ($340.2) |  |  | ($205.6) |
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 26, 2022 |  | June 27, 2021 |  | June 28, 2020
Current: |  |  |  |  |
Federal | $0.3 |  |  | $0.1 |  |  | ($7.3) |
Foreign | 8.0 |  |  | 0.1 |  |  | 0.2 |
State | 0.1 |  |  | 0.2 |  |  | 0.1 |
Total current | 8.4 |  |  | 0.4 |  |  | (7.0) |
Deferred: |  |  |  |  |
Federal | 0.7 |  |  | 0.7 |  |  | 1.8 |
Foreign | (0.1) |  |  | — |  |  | (2.8) |
State | — |  |  | — |  |  | — |
Total deferred | 0.6 |  |  | 0.7 |  |  | (1.0) |
Income tax expense (benefit) | $9.0 |  |  | $1.1 |  |  | ($8.0) |
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 26, 2022 |  | % of Loss |  | June 27, 2021 |  | % of Loss |  | June 28, 2020 |  | % of Loss
Federal income tax provision at statutory rate | ($60.1) |  |  | 21 | % |  | ($71.4) |  |  | 21 | % |  | ($43.2) |  |  | 21 | %
(Decrease) increase in income tax expense resulting from: |  |  |  |  |  |  |  |  |  |  |
State tax provision, net of federal benefit | (2.5) |  |  | 1 | % |  | (1.9) |  |  | 1 | % |  | (1.9) |  |  | 1 | %
Tax exempt interest | (0.2) |  |  | — | % |  | (0.1) |  |  | — | % |  | (0.5) |  |  | — | %
(Decrease) increase in tax reserve | (0.2) |  |  | — | % |  | — |  |  | — | % |  | (0.3) |  |  | — | %
Research and development credits | (5.4) |  |  | 2 | % |  | (4.3) |  |  | 1 | % |  | (3.3) |  |  | 2 | %
Foreign tax credit | (0.3) |  |  | — | % |  | (0.4) |  |  | — | % |  | (0.3) |  |  | — | %
Increase (decrease) in valuation allowance | (51.6) |  |  | 18 | % |  | 75.0 |  |  | (22) | % |  | 50.3 |  |  | (25) | %
Extinguishment of convertible notes | (4.5) |  |  | 2 | % |  | — |  |  | — | % |  | (6.0) |  |  | 3 | %
Stock-based compensation | (3.3) |  |  | 1 | % |  | (2.8) |  |  | 1 | % |  | 2.1 |  |  | (1) | %
Statutory rate differences | — |  |  | — | % |  | 1.1 |  |  | — | % |  | 1.2 |  |  | (1) | %
Foreign earnings taxed in U.S. | 6.8 |  |  | (2) | % |  | 2.7 |  |  | (1) | % |  | 0.3 |  |  | — | %
Other foreign adjustments | — |  |  | — | % |  | (0.1) |  |  | — | % |  | 0.3 |  |  | — | %
Net operating loss carryback | — |  |  | — | % |  | — |  |  | — | % |  | (7.2) |  |  | 4 | %
Provision to return adjustments | 0.3 |  |  | — | % |  | (0.2) |  |  | — | % |  | (1.3) |  |  | 1 | %
Impact of rate changes | 0.5 |  |  | — | % |  | 2.7 |  |  | (1) | % |  | 0.8 |  |  | — | %
Expiration of state credits | 0.1 |  |  | — | % |  | 0.7 |  |  | — | % |  | 0.9 |  |  | — | %
Corporate restructuring adjustment | 129.1 |  |  | (45) | % |  | — |  |  | — | % |  | — |  |  | — | %
Other | 0.3 |  |  | — | % |  | 0.1 |  |  | — | % |  | 0.1 |  |  | — | %
Income tax expense (benefit) | $9.0 |  |  | (3) | % |  | $1.1 |  |  | — | % |  | ($8.0) |  |  | 4 | %
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 26, 2022 |  | June 27, 2021
Deferred tax assets: |  |  |
Compensation | $11.8 |  |  | $10.4 |
Inventories | 22.5 |  |  | 13.6 |
Sales return reserve and allowance for bad debts | 5.0 |  |  | 2.3 |
Federal and state net operating loss carryforwards | 321.0 |  |  | 360.6 |
Federal credits | 48.2 |  |  | 42.1 |
State credits | 1.2 |  |  | 1.2 |
48C investment tax credits | 35.7 |  |  | 36.6 |
Investments | 5.3 |  |  | 0.3 |
Stock-based compensation | 7.2 |  |  | 6.1 |
Deferred revenue | 18.9 |  |  | 26.3 |
Lease liabilities | 12.6 |  |  | 6.2 |
Other | 4.7 |  |  | 4.5 |
Total gross deferred assets | 494.1 |  |  | 510.2 |
Less valuation allowance | (339.2) |  |  | (414.4) |
Deferred tax assets, net | 154.9 |  |  | 95.8 |
Deferred tax liabilities: |  |  |
Property and equipment | (75.1) |  |  | (36.9) |
Intangible assets | (19.1) |  |  | (16.6) |
Investments | — |  |  | (1.1) |
Prepaid taxes and other | (0.6) |  |  | (0.7) |
Foreign earnings recapture | (4.3) |  |  | — |
Taxes on unremitted foreign earnings | (7.4) |  |  | (1.5) |
Lease assets | (12.6) |  |  | (6.1) |
Convertible notes | (38.0) |  |  | (34.4) |
Total gross deferred liability | (157.1) |  |  | (97.3) |
Deferred tax liability, net | ($2.2) |  |  | ($1.5) |
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 26, 2022
(in millions of U.S. Dollars) | Assets |  | Liabilities
U.S. federal income taxes | $— |  |  | ($3.2) |
Foreign income taxes | 1.0 |  |  | — |
Total | $1.0 |  |  | ($3.2) |
| Balance at June 27, 2021
(in millions of U.S. Dollars) | Assets |  | Liabilities
U.S. federal income taxes | $— |  |  | ($2.5) |
Foreign income taxes | 1.0 |  |  | — |
Total | $1.0 |  |  | ($2.5) |
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 26, 2022 |  | June 27, 2021 |  | June 28, 2020
Balance at beginning of period | $7.4 |  |  | $7.4 |  |  | $8.2 |
Decrease related to current year change in law | — |  |  | — |  |  | — |
Increases related to prior year tax positions | — |  |  | — |  |  | — |
Decreases related to prior year tax positions | — |  |  | — |  |  | — |
Settlements with tax authorities | — |  |  | — |  |  | (0.1) |
Expiration of statute of limitations for assessment of taxes | (0.2) |  |  | — |  |  | (0.7) |
Balance at end of period | $7.2 |  |  | $7.4 |  |  | $7.4 |

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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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