Income taxes (Tables)

12 Months Ended

Jun. 29, 2012

Income Tax Expense

The Group’s income tax expense consisted of the following:

	Year Ended
	June 29, 2012			June 24, 2011			June 25, 2010
Current	$	282		$	5,168		$	4,304
Deferred		(2,250	)		(633	)		(537	)
Total income tax (benefit) expense	$	(1,968	)	$	4,535		$	3,767

Reconciliation between Taxes that Would Arise by Applying Basic Tax Rate of Country of Principal Operations to Effective Tax Charge

The reconciliation between the Group’s taxes that would arise by applying the basic tax rate of the country of the Group’s principal operations, Thailand, to the Group’s effective tax charge is shown below:

	Year Ended
	June 29, 2012			June 24, 2011			June 25, 2010
(Loss) income before income taxes	$	(58,435	)	$	68,864		$	48,090
Tax calculated at a corporate income tax rate of 30%		(17,531	)		20,659			14,427
Effect of income taxes from locations with tax rates different from Thailand		(551	)		(334	)		(189	)
Loss (income) not subject to tax *		15,240			(15,986	)		(10,674	)
Income tax on unremitted earnings		552			472			107
Effect of tax rate change		1,263			—			—
Effect of foreign exchange rate adjustment		(993	)		95			—
Others		52			(371	)		96
Corporate income tax (benefit) expense	$	(1,968	)	$	4,535		$	3,767

* Income not subject to taxes relates to income earned in the Cayman Islands and income subject to investment promotion privilege for Building 5, from July 2010 through June 2015. Income not subject to tax per ordinary share on a diluted basis (in dollars) was $(0.44), $0.46 and $0.34 for the years ended June 29, 2012, June 24, 2011 and June 25, 2010, respectively.

Deferred Tax Assets and Deferred Tax Liabilities

The Group’s deferred tax assets and deferred tax liabilities at each balance sheet date are as follows:

	Year Ended
	June 29, 2012		June 24, 2011
Deferred tax assets:
Depreciation	$	1,353	$	1,408
Severance liability		668		566
Reserve and allowance		616		1,126
Allowance for tax loss carried forward		2,456		—
Non-deductible flood loss expenses		793		—
Others		36		253
Total deferred tax assets	$	5,922	$	3,353

	Year Ended
	June 29, 2012			June 24, 2011
Deferred tax liabilities:
Deferred cost of service and expense		(54	)		(68	)
Others		(16	)		(24	)
Total deferred tax liabilities	$	(70	)	$	(92	)
Net deferred tax assets	$	5,852		$	3,261

Current deferred income tax assets and liabilities and non-current deferred income tax assets and liabilities are offset when the income taxes relate to the same tax jurisdiction. The following amounts are shown in the consolidated balance sheets:

	Year Ended
	June 29, 2012			June 24, 2011
Deferred income tax assets — current	$	4,146		$	1,382
Deferred income tax liabilities — current		(58	)		(74	)
Current deferred income tax — net		4,088			1,308
Deferred income tax assets — non current		1,777			1,971
Deferred income tax liabilities — non current		(13	)		(18	)
Non current deferred income tax — net		1,764			1,953
Net deferred income tax assets	$	5,852		$	3,261

Changes to Unrecognized Tax Benefits

The following table indicates the changes to the Company’s unrecognized tax benefits for the years ended June 29, 2012, June 24, 2011 and June 25, 2010 included in other non-current liabilities.

	June 29, 2012		June 24, 2011			June 25, 2010
Beginning balance	$	1,124	$	1,540		$	1,551
Additions during the year		—		—			—
Additions for tax positions of prior years		—		—			450
Reductions for tax positions of prior years		—		(416	)		(461	)
Ending balance	$	1,124	$	1,124		$	1,540