Income Taxes (Tables)

12 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Summary of Loss Before Income Taxes

For financial reporting purposes, our income before income taxes includes the following:

	Year Ended
	June 30, 2018			July 1, 2017			July 2, 2016
	(Thousands)
Domestic	$	(237	)	$	(12,579	)	$	(856	)
Foreign	75,080			115,392			10,285
	$	74,843		$	102,813		$	9,429

Components of Income Tax Provision

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

	Year Ended
	June 30, 2018		July 1, 2017			July 2, 2016
	(Thousands)
Current:
Domestic	$	8	$	6		$	16
Foreign	3,138		629			1,023
Deferred:
Domestic	—		—			—
Foreign	9,244		(25,681		)	(190		)
	$	12,390	$	(25,046	)	$	849

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
	June 30, 2018			July 1, 2017			July 2, 2016
	(Thousands)
Tax expense at U.S. federal statutory rate	$	20,609		$	34,957		$	3,206
Tax expense at state statutory rate	959			1,070			138
Other permanent adjustments	948			2,796			1,894
Foreign rate differential	(3,095		)	(9,043		)	(786		)
Change in valuation allowance	(39,876		)	(54,584		)	(3,705		)
Impact of Tax Cuts and Jobs Act - rate reduction	34,953			—			—
Other	(2,108		)	(242		)	102
Provision for (benefit from) income taxes	$	12,390		$	(25,046	)	$	849

Components of Deferred Tax Asset

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

	June 30, 2018			July 1, 2017
	(Thousands)
Deferred tax assets:
Net operating loss carryforwards	$	157,411		$	189,620
Depreciation and capital losses	15,242			25,809
Capitalized research and development	5,977			8,531
Inventory valuation	4,724			3,234
Accruals and reserves	16,339			13,613
Tax credit carryforwards	7,063			6,736
Stock-based compensation	2,209			2,424
Other asset impairments	1,277			1,999
Deferred tax assets	210,242			251,966
Valuation allowance	(193,435		)	(225,643		)
Total deferred tax assets	16,807			26,323
Deferred tax liabilities:
Acquired intangibles	(182		)	(454		)
Withholding tax	(95		)	(95		)
Total deferred tax liabilities	(277		)	(549		)
Net deferred tax assets	$	16,530		$	25,774

Summary of Operating Loss Carryforwards

Net operating loss carryforwards by jurisdiction are summarized as follows:

	June 30, 2018		Years of Expiration
	(Thousands)
United Kingdom	$	497,670	Indefinite
Federal	242,169		Varies (1)
California	167,944		2019 - 2038
Other Foreign	1,162		2019 - 2038
Total	$	908,945

(1) Of the $242.2 million in federal net operating loss carryforwards, $236.0 million expires between 2019 and 2037, and $6.2 million has an indefinite life.

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 June 30, 2018, July 1, 2017 and July 2, 2016 is as follows:

	Year Ended
	June 30, 2018			July 1, 2017			July 2, 2016
				(Thousands)
Balance at beginning of period	$	3,515		$	3,779		$	4,058
Additions for tax positions related to the current year	100			21			639
Additions for tax positions related to prior years	93			6			538
Reductions for tax positions related to prior years	(14		)	(291		)	(1,016		)
Lapse of the applicable statute of limitations	(610		)	—			(440		)
Balance at end of period	$	3,084		$	3,515		$	3,779