Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Income before Income Tax, Domestic and Foreign

oss) from continuing operations before provision for income taxes during fiscal year 2017, 2016 and 2015 consisted of the following:



	Fiscal Year
(In thousands)	2017			2016			2015
United States	$	10,979		$	(4,248	)	$	(18,603	)
Foreign	(11,584		)	(24,295		)	(7,355		)
Total loss from continuing operations before income taxes	$	(605	)	$	(28,543	)	$	(25,958	)

Schedule of Components of Income Tax Expense (Benefit)

Provision for (benefit from) income taxes from continuing operations for fiscal year 2017, 2016 and 2015 were summarized as follows:



	Fiscal Year
(In thousands)	2017			2016			2015
Current provision (benefit):
Federal	$	(14	)	$	131		$	—
Foreign	(52		)	1,814			3,378
State and local	7			24			23
	(59		)	1,969			3,401
Deferred provision (benefit):
Federal	168			(468		)	(216		)
Foreign	(93		)	134			(4,495		)
	75			(334		)	(4,711		)
Total provision for (benefit from) income taxes from continuing operations	$	16		$	1,635		$	(1,310	)

Schedule of Effective Income Tax Rate Reconciliation

The provision for (benefit from) income taxes from continuing operations differed from the amount computed by applying the federal statutory rate of 35% to our income before provision for income taxes as follows:



	Fiscal Year
(In thousands)	2017			2016			2015
Tax benefit at statutory rate	$	(196	)	$	(9,990	)	$	(9,065	)
Valuation allowances	(1,346		)	6,609			(3,900		)
Foreign non-deductible expenses	628			103			(80		)
State and local taxes, net of U.S. federal tax benefit	358			(134		)	(500		)
Foreign income taxed at rates less than the U.S. statutory rate	2,062			6,019			9,970
Dividend from foreign subsidiary	—			(1,781		)	—
Foreign branch income/withholding taxes	1,116			292			1,350
Singapore refund	(3,778		)	—			—
Change in uncertain tax positions	1,173			437			610
Other	(1		)	80			305
Total provision for (benefit from) income taxes from continuing operations	$	16		$	1,635		$	(1,310	)

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows:



(In thousands)	June 30, 2017			July 1, 2016
Deferred tax assets:
Inventory	$	4,390		$	6,652
Accruals and reserves	2,611			2,497
Bad debts	669			1,091
Amortization	1,870			3,148
Stock compensation	2,266			2,599
Deferred revenue	3,127			1,759
Unrealized exchange gain/loss	3,295			3,422
Other	3,715			6,623
Tax credit carryforwards	15,337			18,016
Tax loss carryforwards	168,115			167,468
Total deferred tax assets before valuation allowance	205,395			213,275
Valuation allowance	(197,951		)	(202,824		)
Total deferred tax assets	7,444			10,451
Deferred tax liabilities:
Branch undistributed earnings reserve	990			822
Depreciation	1,501			4,596
Other	456			462
Total deferred tax liabilities	2,947			5,880
Net deferred tax assets	$	4,497		$	4,571

As Reported on the Consolidated Balance Sheets
Deferred income tax assets	$	6,178		$	6,068
Deferred income tax liabilities	1,681			1,497
Total net deferred income taxes	$	4,497		$	4,571

Schedule of Unrecognized Tax Benefits Roll Forward

Our unrecognized tax benefit activity for fiscal 2017, 2016 and 2015 was as follows:



(In thousands)	Amount
Unrecognized tax benefit as of June 27, 2014	$	28,209
Additions for tax positions in prior periods	673
Decreases for tax positions in prior periods	(227		)
Decreases related to change of foreign exchange rate	(1,745		)
Unrecognized tax benefit as of July 3, 2015	26,910
Additions for tax positions in current periods	397
Additions for tax positions in prior periods	246
Decreases related to change of foreign exchange rate	(515		)
Unrecognized tax benefit as of July 1, 2016	27,038
Additions for tax positions in prior periods	626
Additions for tax positions in current periods	831
Decreases for tax positions in prior periods	(9,279		)
Decreases related to change of foreign exchange rate	(477		)
Unrecognized tax benefit as of June 30, 2017	$	18,739