Income Taxes (Tables)

12 Months Ended

Jul. 01, 2017

Income Tax Disclosure [Abstract]

Summary of Loss Before Income Taxes

For financial reporting purposes, our income (loss) from continuing operations before income taxes includes the following:

	Year Ended
	July 1, 2017			July 2, 2016			June 27, 2015
	(Thousands)
Domestic	$	(12,579	)	$	(856	)	$	(5,725	)
Foreign	115,392			10,285			(42,181		)
	$	102,813		$	9,429		$	(47,906	)

Components of Income Tax Provision

The components of our income tax provision (benefit) are as follows:

	Year Ended
	July 1, 2017			July 2, 2016			June 27, 2015
	(Thousands)
Current:
Domestic	$	6		$	16		$	(5	)
Foreign	629			1,023			543
Deferred:
Domestic	—			—			—
Foreign	(25,681		)	(190		)	(210		)
	$	(25,046	)	$	849		$	328

Reconciliations of Income Tax Provision at Statutory Rate to Income Tax Provision

Reconciliations of our income tax provision (benefit) at the statutory rate to our income tax provision (benefit) are as follows:

	Year Ended
	July 1, 2017			July 2, 2016			June 27, 2015
	(Thousands)
Tax expense (benefit) at U.S. federal statutory rate	$	34,957		$	3,206		$	(16,288	)
Tax expense (benefit) at state statutory rate	1,070			138			(487		)
Other permanent adjustments	2,796			1,894			1,815
Foreign rate differential	(9,043		)	(786		)	11,635
Change in valuation allowance	(54,584		)	(3,705		)	4,165
Other	(242		)	102			(512		)
Provision for (benefit from) income taxes	$	(25,046	)	$	849		$	328

Components of Deferred Tax Asset

Significant components of our deferred tax assets and liabilities are as follows:

	July 1, 2017			July 2, 2016
	(Thousands)
Deferred tax assets:
Net operating loss carryforwards	$	189,620		$	216,768
Depreciation and capital losses	25,809			27,373
Capitalized research and development	8,531			11,579
Inventory valuation	3,234			6,656
Accruals and reserves	13,613			14,126
Tax credit carryforwards	6,736			6,142
Stock-based compensation	2,424			1,905
Other asset impairments	1,999			2,016
Deferred tax assets	251,966			286,565
Valuation allowance	(225,643		)	(285,683		)
Total deferred tax assets	26,323			882
Deferred tax liabilities:
Acquired intangibles	(454		)	(693		)
Withholding tax	(95		)	(95		)
Total deferred tax liabilities	(549		)	(788		)
Net deferred tax assets	$	25,774		$	94

Summary of Operating Loss Carryforwards

Net operating loss carryforwards by jurisdiction are summarized as follows:

	July 1, 2017		Years of Expiration
	(Thousands)
United Kingdom	$	468,436	Indefinite
Federal	236,633		2018 - 2037
California	166,527		2018 - 2037
Japan	44,898		2022 - 2026
Other Foreign	1,374		2018 -2037
Total	$	917,868

Gross Unrecognized Tax Benefits, Net of Interest and Penalties

A reconciliation of the beginning balance and the ending balance of gross unrecognized tax benefits, net of interest and penalties, for fiscal year ended July 1, 2017, July 2, 2016 and June 27, 2015 is as follows:

	Year Ended
	July 1, 2017			July 2, 2016			June 27, 2015
				(Thousands)
Balance at beginning of period	$	3,779		$	4,058		$	4,164
Additions for tax positions related to the current year	21			639			232
Additions for tax positions related to prior years	6			538			759
Reductions for tax positions related to prior years	(291		)	(1,016		)	(473		)
Lapse of the applicable statute of limitations	—			(440		)	(624		)
Balance at end of period	$	3,515		$	3,779		$	4,058