Income Taxes (Tables)

12 Months Ended

Jul. 03, 2021

Income Tax Disclosure [Abstract]

Schedule of income (loss) before income taxes

Our income (loss) before income taxes consisted of the following (in millions):

	Years Ended
	July 3, 2021		June 27, 2020		June 29, 2019
Domestic	$	314.9	$	(33.1)	$	(21.9)
Foreign	148.2		207.4		(11.4)
Income (loss) before income taxes	$	463.1	$	174.3	$	(33.3)

Schedule of the company's income tax provision

Our income tax provision consisted of the following (in millions):

	Years Ended
	July 3, 2021		June 27, 2020		June 29, 2019
Federal:
Current	$	30.5	$	2.9	$	13.8
Deferred	9.2		19.3		(0.1)
	39.7		22.2		13.7
State:
Current	1.7		0.1		0.1
Deferred	(0.3)		(0.4)		0.4
	1.4		(0.3)		0.5
Foreign:
Current	36.5		23.4		10.3
Deferred	(11.8)		(6.5)		(21.4)
	24.7		16.9		(11.1)
Total income tax provision	$	65.8	$	38.8	$	3.1

Schedule of reconciliation of the company's income tax expense (benefit) at the federal statutory rate to the income tax expense (benefit) at the effective tax rate

The provision for income taxes differs from the amount computed by applying the U.S. Federal statutory income tax rate to our income before provision for income taxes as follows (in millions):

	Years Ended
	July 3, 2021			June 27, 2020			June 29, 2019
Income tax (benefit) provision computed at federal statutory rate	$	97.3		$	36.6		$	(7.0)
Foreign rate differential	(50.4)			(24.6)			(17.8)
Change in valuation allowance	45.4			13.4			7.4
Tax credits	(31.8)			(10.2)			(7.1)
Stock-based compensation	5.6			4.8			5.9
Subpart F and GILTI	42.1			22.9			13.4
Unrecognized tax benefits	(3.7)			(1.7)			4.8
Change in Non-US Statutory Tax Rates	(35.8)			(2.8)			—
Other	(2.9)			0.4			0.5
Audit settlement	—			—			3.0
Total income tax provision	$	65.8		$	38.8		$	3.1
Effective tax rate	14.22		%	22.26		%	(9.31)		%

Schedule of the company's net deferred taxes

The components of our net deferred taxes consisted of the following (in millions):

	Years Ended
	July 3, 2021		June 27, 2020
Gross deferred tax assets:
Intangibles	$	92.0	$	101.1
Tax credit carryforwards	75.3		67.8
Net operating loss carryforwards	172.7		129.8
Inventories	6.8		7.4
Accruals and reserves	10.6		13.1
Fixed assets	23.9		23.2
Capital loss carryforwards	12.6		11.5
Unclaimed research and experimental development expenditure	42.1		33.4
Stock-based compensation	5.1		3.6
Lease liabilities	16.3		17.7
Other	0.3		0.2
Gross deferred tax assets	457.7		408.8
Valuation allowance	(272.4)		(200.8)
Deferred tax assets	185.3		208.0
Gross deferred tax liabilities:
Intangible amortization	(59.6)		(68.5)
Convertible notes	(68.0)		(79.4)
Right-of-use assets	(19.6)		(21.3)
Other	(1.1)		(4.1)
Deferred tax liabilities	(148.3)		(173.3)
Total net deferred tax assets	$	37.0	$	34.7

Schedule of reconciliation of unrecognized tax benefits

The aggregate changes in the balance of our unrecognized tax benefits between June 29, 2019 and July 3, 2021 are as follows (in millions):

Balance at June 29, 2019	$	58.0
Decreases based on the tax positions related to the prior year	(8.2)
Decreases related to settlement with Tax Authorities	(2.0)
Additions based on tax positions related to current year	7.7
Balance at June 27, 2020	$	55.5
Increases based on tax positions related to prior year	6.8
Decreases based on tax positions related to prior year	(1.6)
Decreases related to Statute of Limitations	(5.1)
Additions based on tax positions related to current year	6.5
Balance at July 3, 2021	$	62.1