Income Taxes (Tables)

12 Months Ended

Jul. 03, 2020

Income Tax Disclosure [Abstract]

Components of Income Before Income Taxes and Income Tax Expense (Benefit)

The components of income before income taxes and income tax expense were as follows:

	Fiscal Years
	2020		2019		2018
Income before income taxes:
United States	$	93,388	$	57,281	$	43,368
Foreign	545		2,246		(795)
	$	93,933	$	59,527	$	42,573
Tax provision (benefit):
Federal:
Current	$	8,442	$	11,454	$	4,470
Deferred	(1,077)		(3,008)		(4,527)
	7,365		8,446		(57)
State:
Current	3,407		5,194		2,370
Deferred	(2,327)		(1,421)		(537)
	1,080		3,773		1,833
Foreign:
Current	475		546		186
Deferred	(699)		(13)		(272)
	(224)		533		(86)
	$	8,221	$	12,752	$	1,690

Reconciliation Between Statutory Federal Income Tax Rate and Effective Income Tax Rate from Continuing Operations

The following is the reconciliation between the statutory Federal income tax rate and the Company’s effective income tax rate:

	Fiscal Years
	2020		2019		2018
Tax provision at federal statutory rates	21.0	%	21.0	%	28.0	%
State income tax, net of federal tax benefit	6.1		5.9		5.6
Research and development tax credits	(11.9)		(4.5)		(5.1)
Provision to return	(3.1)		—		—
Excess tax benefits related to stock compensation	(7.7)		(4.5)		(18.5)
Domestic manufacturing deduction	—		—		(2.0)
Deemed repatriation of foreign earnings	—		—		1.9
Foreign income tax rate differential	0.1		0.1		0.3
Non-deductible compensation	2.6		2.0		1.7
Acquisition costs	—		0.1		1.4
Reserves for unrecognized income tax benefits	3.0		0.3		0.3
Tax rate changes	(0.5)		—		(2.3)
Impacts related to acquired tax attributes	—		—		(8.7)
Other	(0.8)		1.0		1.4
	8.8	%	21.4	%	4.0	%

Components of Net Deferred Tax Assets (Liabilities)

	As of
	July 3, 2020		June 30, 2019
Deferred tax assets:
Inventory valuation and receivable allowances	$	12,066	$	10,313
Accrued compensation	5,941		4,644
Stock compensation	5,062		4,595
Federal and state tax credit carryforwards	11,782		15,510
Other accruals	1,086		1,128
Deferred compensation	930		1,561
Acquired net operating loss carryforward	425		721
Operating lease liabilities	20,035		—
Capital loss carryforwards	—		2,354
Other	1,876		2,258
	59,203		43,084
Valuation allowance	(11,264)		(16,666)
Total deferred tax assets	47,939		26,418
Deferred tax liabilities:
Prepaid expenses	(1,111)		(848)
Property and equipment	(10,668)		(4,927)
Intangible assets	(33,007)		(38,399)
Operating lease right-of-use assets	(16,426)		—
Other	(616)		(58)
Total deferred tax liabilities	(61,828)		(44,232)
Net deferred tax liabilities	$	(13,889)	$	(17,814)
As reported:
Deferred tax liabilities	$	(13,889)	$	(17,814)
	$	(13,889)	$	(17,814)

Summary of Reserves for Unrecognized Income Tax Benefits

The changes in the Company’s reserves for unrecognized income tax benefits are summarized as follows:

	Fiscal Years
	2020		2019
Unrecognized tax benefits, beginning of period	$	1,273	$	998
Increases for tax positions taken related to a prior period	2,146		—
Increases for tax positions taken during the current period	854		275
Decreases for tax positions taken related to a prior period	—		—
Decreases for tax positions taken during current period	—		—
Decreases for settlements of previously recognized positions	—		—
Decreases as a result of a lapse of the applicable statute of limitations	(156)		—
Unrecognized tax benefits, end of period	$	4,117	$	1,273