Income Taxes (Tables)

12 Months Ended

Jun. 30, 2023

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

The components of income before income taxes and income tax (benefit) provision were as follows:


	Fiscal Years
	2023		2022		2021
(Loss) income before income taxes:
United States	$	(42,864)	$	24,286	$	85,101
Foreign	(5,678)		(5,891)		(7,928)
	$	(48,542)	$	18,395	$	77,173
Tax (benefit) provision:
Federal:
Current	$	33,898	$	3,857	$	12,157
Deferred	(54,010)		(230)		(995)
	(20,112)		3,627		11,162
State:
Current	10,054		3,626		6,271
Deferred	(10,200)		(2,721)		(2,689)
	(146)		905		3,582
Foreign:
Current	104		2,535		435
Deferred	(53)		53		(50)
	51		2,588		385
	$	(20,207)	$	7,120	$	15,129

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
	2023		2022		2021
Tax provision (benefit) at federal statutory rates	(21.0)	%	21.0	%	21.0	%
State income tax, net of federal tax benefit	(5.4)		8.1		6.7
Research and development tax credits	(15.1)		(39.5)		(10.9)
Provision to return	(0.7)		10.3		(1.3)
Excess tax (benefit) provision related to stock compensation	2.6		5.3		(3.7)
Foreign income tax rate differential	0.2		2.3		0.9
Non-deductible compensation	1.0		20.9		3.6




Acquisition costs	—		1.2		0.4
Reserves for unrecognized income tax benefits	(6.9)		5.4		1.3

Valuation allowance	3.8		4.3		1.9

Foreign derived intangible income	(1.4)		(1.6)		(0.4)
Meals and entertainment	0.6		0.8		0.1
Other	0.7		0.2		—
	(41.6)	%	38.7	%	19.6	%

Components of Net Deferred Tax Assets (Liabilities)

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


	As of
	June 30, 2023		July 1, 2022
Deferred tax assets:
Inventory valuation and receivable allowances	$	18,095	$	17,248
Accrued compensation	3,127		5,970
Stock compensation	5,149		6,154
Federal and state tax credit carryforwards	14,287		20,294

Other accruals	2,705		1,503
Research and development expenditures	63,114		—
Deferred compensation	930		930

Federal and state net operating loss carryforward	774		5,275
Foreign net operating loss carryforward	3,166		1,859
Operating lease liabilities	19,968		21,988
Deferred revenue	1,260		743

Other	1,065		307
	133,640		82,271
Valuation allowance	(14,785)		(15,349)
Total deferred tax assets	118,855		66,922
Deferred tax liabilities:
Prepaid expenses	(1,710)		(1,815)
Property and equipment	(15,798)		(19,766)
Intangible assets	(54,550)		(59,628)
Operating lease right-of-use assets, net	(17,077)		(17,985)
Gain on interest rate swap	(2,400)		—
Other	(221)		(126)
Total deferred tax liabilities	(91,756)		(99,320)
Net deferred tax assets (liabilities)	$	27,099	$	(32,398)

Summary of Reserves for Unrecognized Income Tax Benefits

The changes in the Company’s income tax reserves for gross unrecognized income tax benefits, including interest and penalties, are summarized as follows:


	Fiscal Years
	2023		2022
Unrecognized tax benefits, beginning of period	$	9,112	$	7,467
Increases for tax positions taken related to a prior period	—		160
Increases for tax positions taken during the current period	1,260		990
Decreases for tax positions taken by an acquired company	(2,679)		615
Decreases for tax positions taken related to a prior period	(191)		—

Decreases for settlements of previously recognized positions	(93)		(92)
Decreases as a result of a lapse of the applicable statute of limitations	(2,244)		(28)


Unrecognized tax benefits, end of period	$	5,165	$	9,112