Income Taxes (Tables)

12 Months Ended

Jun. 29, 2014

Schedule of (Loss) Income before Income Tax, Domestic and Foreign

(Loss) income before income taxes consists of the following components:



	2014			2013			2012
	(In thousands)
United States	$	(37,613	)	$	(27,473	)	$	(60,627	)
International	11,427			21,890			51,125
Total loss before income taxes	$	(26,186	)	$	(5,583	)	$	(9,502	)

Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation

A reconciliation of the income tax provision (benefit) with the amount computed by applying the federal statutory tax rate to income before income taxes is as follows:



	2014			2013			2012
	(In thousands)
Expected income tax (benefit) expense at the statutory rate	$	(9,165	)	$	(1,954	)	$	(3,325	)
State income tax (benefit) expense, net of federal tax	116			138			(38		)
Change in valuation allowance	10,753			10,767			12,730
Tax rate differential on foreign earnings	(5,140		)	(6,404		)	(8,554		)
Reversal of uncertain tax position accruals	(889		)	—			—
Research and other credits	(2,664		)	(7,350		)	(2,571		)
Stock-based compensation	2,088			2,150			1,921
Section 199 deduction	—			1,357			—
Tax impact on unrealized foreign currency gains (losses) on monetary assets and liabilities	3,204			(281		)	—
Expiration of capital loss carryforward	1,741			—			—
Non-deductible interest	1,161			—			—
Other	2,141			1,208			1,415
Total income tax expense (benefit)	$	3,346		$	(369	)	$	1,578

Components of Income Taxes

The components of income taxes are as follows:



	2014			2013			2012
	(In thousands)
Current:
Federal	$	(21	)	$	(7,882	)	$	4,514
State	116			(118		)	401
Foreign	1,836			5,745			3,420
Total current	1,931			(2,255		)	8,335
Deferred:
Federal	—			6,261			(7,850		)
State	—			256			(299		)
Foreign	1,415			(4,631		)	1,392
Total deferred	1,415			1,886			(6,757		)
Total income tax expense (benefit)	$	3,346		$	(369	)	$	1,578

Major Components of Deferred Tax Assets and Liabilities

The Company’s deferred tax assets and liabilities are comprised of the following major components:



	2014			2013
	(In thousands)
Deferred tax assets:
Reserves and accruals not currently deductible	$	5,455		$	6,810
Share-based compensation	6,495			9,474
Net operating loss carryforwards	27,908			25,070
General business credit carryforwards	43,923			40,383
Capitalized research and development expenditures	2,873			3,366
Capital loss carryforwards	3,392			5,161
Intangible assets	3,852			4,310
Other	2,241			354
Total gross deferred tax assets	96,139			94,928
Valuation allowance	(72,100		)	(60,091		)
Total deferred tax assets, net of valuation allowance	24,039			34,837
Deferred tax liabilities:
Property and equipment	$	2,636		$	4,173
Intangible assets	34,651			43,453
Other	2,079			1,123
Total gross deferred tax liabilities	39,366			48,749
Net deferred tax liabilities	$	(15,327	)	$	(13,912	)

Rollforward of Activity in Gross Unrecognized Tax Benefits

A rollforward of the activity in the gross unrecognized tax benefits for fiscal years 2014 and 2013 is as follows:



	2014			2013
	(In thousands)
Balance at beginning of year	$	42,730		$	39,757
Additions based on tax positions related to the current year	1,110			1,917
Additions for tax positions of prior years	—			1,056
Reductions for tax positions of prior years	(616		)	—
Reductions for tax positions due to a lapse in statute	—			—
Reductions for tax positions due to settlements	(2,979		)	—
Balance at end of year	$	40,245		$	42,730