Income Taxes (Tables)

12 Months Ended

Jun. 28, 2024

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

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


	Fiscal Years
	2024		2023		2022
(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:
Current	95		104		2,535
Deferred	288		(53)		53
	383		51		2,588
	$	(51,635)	$	(20,207)	$	7,120

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

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


	Fiscal Years
	2024		2023		2022
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 compensation	1.4		2.6		5.3
Foreign income tax rate differential	0.2		0.2		2.3
Non-deductible compensation	0.9		1.0		20.9




Acquisition costs	—		—		1.2
Reserves for unrecognized income tax benefits	0.2		(6.9)		5.4

Valuation allowance	0.7		3.8		4.3

Foreign derived intangible income	—		(1.4)		(1.6)

Other	—		1.3		1.0
	(27.3)	%	(41.6)	%	38.7	%

Components of Net Deferred Tax Assets (Liabilities)

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


	As of
	June 28, 2024		June 30, 2023
Deferred tax assets:
Inventory valuation and receivable allowances	$	23,799	$	18,095
Accruals	10,852		6,762
Stock compensation	6,700		5,149
Federal and state research and development tax credit carryforwards	17,762		14,287


Research and development expenditures	68,728		63,114

Interest expense carryforward	5,289		—
Federal and state net operating loss carryforward	2,357		774
Foreign net operating loss carryforward	4,004		3,166
Operating lease liabilities	20,107		19,968


Other	1,339		2,325
	160,937		133,640
Valuation allowance	(17,575)		(14,785)
Total deferred tax assets	143,362		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

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
	2024		2023
Unrecognized tax benefits, beginning of period	$	5,165	$	9,112
Increases for tax positions taken related to a prior period	3,371		—
Increases for tax positions taken during the current period	3,083		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