Income Taxes (Tables)

12 Months Ended

Jul. 02, 2021

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
	2021		2020		2019
Income (loss) before income taxes:
United States	$	85,101	$	93,388	$	57,281
Foreign	(7,928)		545		2,246
	$	77,173	$	93,933	$	59,527
Tax provision (benefit):
Federal:
Current	$	12,157	$	8,442	$	11,454
Deferred	(995)		(1,077)		(3,008)
	11,162		7,365		8,446
State:
Current	6,271		3,407		5,194
Deferred	(2,689)		(2,327)		(1,421)
	3,582		1,080		3,773
Foreign:
Current	435		475		546
Deferred	(50)		(699)		(13)
	385		(224)		533
	$	15,129	$	8,221	$	12,752

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
	2021		2020		2019
Tax provision at federal statutory rates	21.0	%	21.0	%	21.0	%
State income tax, net of federal tax benefit	6.7		6.1		5.9
Research and development tax credits	(10.9)		(11.9)		(4.5)
Provision to return	(1.3)		(3.1)		—
Excess tax benefits related to stock compensation	(3.7)		(7.7)		(4.5)
Foreign income tax rate differential	0.9		0.1		0.1
Non-deductible compensation	3.6		2.6		2.0
Acquisition costs	0.4		—		0.1
Reserves for unrecognized income tax benefits	1.3		3.0		0.3
Tax rate changes	—		(0.5)		—
Valuation allowance	1.9		—		—
Other	(0.3)		(0.8)		1.0
	19.6	%	8.8	%	21.4	%

Components of Net Deferred Tax Assets (Liabilities)

The components of the Company’s net deferred tax liabilities were as follows:

	As of
	July 2, 2021		July 3, 2020
Deferred tax assets:
Inventory valuation and receivable allowances	15,039		12,066
Accrued compensation	5,421		5,941
Stock compensation	4,548		5,062
Federal and state tax credit carryforwards	17,405		11,782
Other accruals	994		1,086
Deferred compensation	930		930
Acquired net operating loss carryforward	10,487		425
Foreign net operating loss carryforward	1,703		453
Operating lease liabilities	21,889		20,035
Deferred revenue	2,899		781
Other	734		642
	82,049		59,203
Valuation allowance	(15,257)		(11,264)
Total deferred tax assets	66,792		47,939
Deferred tax liabilities:
Prepaid expenses	(984)		(1,111)
Property and equipment	(17,734)		(10,668)
Intangible assets	(58,839)		(33,007)
Operating lease right-of-use assets	(17,987)		(16,426)
Other	(58)		(616)
Total deferred tax liabilities	(95,602)		(61,828)
Net deferred tax liabilities	$	(28,810)	$	(13,889)
As reported:
Deferred tax liabilities	$	(28,810)	$	(13,889)
	$	(28,810)	$	(13,889)

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
	2021		2020
Unrecognized tax benefits, beginning of period	$	4,117	$	1,273
Increases for tax positions taken related to a prior period	113		2,146
Increases for tax positions taken during the current period	917		854
Increases for tax positions taken by an acquired company	2,348		—
Decreases for tax positions taken related to a prior period	(27)		—
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	(1)		(156)
Unrecognized tax benefits, end of period	$	7,467	$	4,117