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Income Taxes
 12 Months Ended
Jun. 28, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of (loss) income before income taxes and income tax (benefit) provision were as follows:
Fiscal Years
202420232022
(Loss) income before income taxes:
United States$(183,263)$(42,864)$24,286 
Foreign(6,012)(5,678)(5,891)
$(189,275)$(48,542)$18,395 
Tax (benefit) provision:
Federal:
Current$(19,791)$33,898 $3,857 
Deferred(21,274)(54,010)(230)
(41,065)(20,112)3,627 
State:
Current(3,016)10,054 3,626 
Deferred(7,937)(10,200)(2,721)
(10,953)(146)905 
Foreign:
Current95 104 2,535 
Deferred288 (53)53 
383 51 2,588 
$(51,635)$(20,207)$7,120 
The following is the reconciliation between the federal statutory income tax rate and the Company’s effective income tax rate:
Fiscal Years
202420232022
Tax (benefit) provision at federal statutory rates(21.0)%(21.0)%21.0 %
State income tax, net of federal tax benefit(5.9)(5.4)8.1 
Research and development tax credits(3.7)(15.1)(39.5)
Provision to return(0.1)(0.7)10.3 
Excess tax provision related to stock compensation1.4 2.6 5.3 
Foreign income tax rate differential0.2 0.2 2.3 
Non-deductible compensation0.9 1.0 20.9 
Acquisition costs— — 1.2 
Reserves for unrecognized income tax benefits0.2 (6.9)5.4 
Valuation allowance0.7 3.8 4.3 
Foreign derived intangible income— (1.4)(1.6)
Other— 1.3 1.0 
(27.3)%(41.6)%38.7 %
The effective tax rate for fiscal 2024 differed from the Federal statutory rate primarily due to Federal and state research and development tax credits and state taxes, partially offset by tax provisions related to stock compensation.
The effective tax rate for fiscal 2023 differed from the Federal statutory rate primarily due to Federal and state research and development tax credits, releases to reserves for unrecognized income tax benefits and state taxes, partially offset by valuation allowances recorded and tax provisions related to stock compensation.
The effective tax rate for fiscal 2022 differed from the Federal statutory rate primarily due to additional tax provisions for non-deductible compensation, provision to return adjustments, state taxes and excess tax provisions related to stock compensation, partially offset by research and development tax credits.
The components of the Company’s net deferred tax assets (liabilities) were as follows:
As of
June 28, 2024June 30, 2023
Deferred tax assets:
Inventory valuation and receivable allowances$23,799 $18,095 
Accruals10,852 6,762 
Stock compensation6,700 5,149 
Federal and state research and development tax credit carryforwards17,762 14,287 
Research and development expenditures68,728 63,114 
Interest expense carryforward5,289 — 
Federal and state net operating loss carryforward

2,357 774 
Foreign net operating loss carryforward4,004 3,166 
Operating lease liabilities20,107 19,968 
Other1,339 2,325 
160,937 133,640 
Valuation allowance(17,575)(14,785)
Total deferred tax assets143,362 118,855 
Deferred tax liabilities:
Property and equipment(13,647)(15,798)
Intangible assets(50,935)(54,550)
Operating lease right-of-use assets, net(16,493)(17,077)
Other(3,675)(4,331)
Total deferred tax liabilities(84,750)(91,756)
Net deferred tax assets$58,612 $27,099 
At June 28, 2024, the Company has gross state research and development tax credit carryforwards of $17,385, $13,734 net of federal benefit, of which a portion will expire each fiscal year through fiscal year 2039. The Company maintains a valuation allowance on the majority of the Company’s state research and development tax credit carryforwards. The Company has gross federal research and development tax credit carryforwards of $3,887, of which a portion will expire starting in fiscal year 2040.
At June 28, 2024, the Company has gross interest expense carryforwards of $19,518, which have an indefinite life, gross state net operating loss carryforwards of $33,802, which will expire starting in fiscal year 2040 and gross foreign net operating loss carryforwards of $25,742 which will expire starting in fiscal year 2028. The Company maintains a valuation allowance on the majority of the foreign net operating loss carryforward.
Based on forecasted taxable income and the scheduled reversal of the remaining deferred tax assets, the Company believes it is more likely than not that all other deferred tax assets will be realized.
The Company is subject to taxation in the U.S. (Federal and state) and various foreign jurisdictions that it operates in. The Company has established income tax reserves for potential additional income taxes based upon management’s assessment, including recognition and measurement. All income tax reserves are analyzed quarterly, and adjustments are made as events occur and warrant modification.
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
20242023
Unrecognized tax benefits, beginning of period$5,165 $9,112 
Increases for tax positions taken related to a prior period3,371 — 
Increases for tax positions taken during the current period3,083 1,260 
Decreases for tax positions taken by an acquired company— (2,679)
Decreases for tax positions taken related to a prior period(2,971)(191)
Decreases for settlements of previously recognized positions— (93)
Decreases as a result of a lapse of the applicable statute of limitations(935)(2,244)
Unrecognized tax benefits, end of period$7,713 $5,165 
The Company has $7,713 of unrecognized tax benefits as of June 28, 2024. If released, $5,543 of these unrecognized income tax benefits would reduce the Company's income tax provision.
The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes. The total amount of interest and penalties accrued was $1,374 and $583 as of June 28, 2024 and June 30, 2023, respectively, and the amount of interest and penalties accrued and recognized was $791 and $96 during June 28, 2024 and June 30, 2023, respectively.
The Company’s major tax jurisdiction is the U.S. (Federal and state) and the open tax years are fiscal 2018 through 2024.