Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

Income Loss Before Income Taxes

The components of income (loss) before income taxes are as follows:

	Year Ended
	June 30, 2013			June 24, 2012			June 26, 2011
	(in thousands)
United States	$	(46,392	)	$	(6,950	)	$	159,250
Foreign		113,050			211,368			641,626
	$	66,658		$	204,418		$	800,876

Provision Benefit For Income Taxes

Significant components of the provision (benefit) for income taxes attributable to income before income taxes are as follows:

	Year Ended
	June 30,			June 24,			June 26,
	2013			2012			2011
	(in thousands)
Federal:
Current	$	(1,096	)	$	5,038		$	55,119
Deferred		(60,172	)		(1,033	)		(25,143	)
	$	(61,268	)	$	4,005		$	29,976
State:
Current	$	3,332		$	1,297		$	3,159
Deferred		(6,351	)		336			26,589
	$	(3,019	)	$	1,633		$	29,748
Foreign:
Current	$	20,640		$	33,871		$	22,556
Deferred		(3,574	)		(3,814	)		(5,152	)
	$	17,066		$	30,057		$	17,404
Total Provision (Benefit) for Income Taxes	$	(47,221	)	$	35,695		$	77,128

Components of Net Deferred Tax Assets

Significant components of the Company’s net deferred tax assets are as follows:

	June 30,			June 24,
	2013			2012
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	169,371		$	114,974
Allowances and reserves		94,720			102,041
Equity-based compensation		19,586			24,960
Inventory valuation differences		22,833			8,233
Other		11,286			3,506
Gross deferred tax assets		317,796			253,714
Valuation allowance		(76,594	)		(55,213	)
Net deferred tax assets		241,202			198,501
Deferred tax liabilities:
Intangible Assets		(94,836	)		(117,312	)
Convertible debt		(98,482	)		(81,608	)
Temporary differences for captial assets		(41,470	)		(71,439	)
Amortization of goodwill		(9,950	)		(8,180	)
Other		(14,581	)		(7,060	)
Gross deferred tax liabilities		(259,319	)		(285,599	)
Net deferred tax assets	$	(18,117	)	$	(87,098	)

Reconciliation of Income Tax Expense Provided at Federal Statutory Rate to Actual Income Expense

A reconciliation of income tax expense provided at the federal statutory rate (35% in fiscal years 2013, 2012 and 2011) to actual income expense is as follows:

	Year Ended
	June 30, 2013			June 24, 2012			June 26, 2011
	(in thousands)
Income tax expense computed at federal statutory rate	$	23,332		$	71,546		$	280,306
State income taxes, net of federal tax benefit		(13,588	)		(4,895	)		9,322
Foreign income taxed at different rates		(40,255	)		(51,425	)		(217,982	)
Tax credits		(42,593	)		(5,791	)		(16,503	)
State valuation allowance, net of federal tax benefit		11,538			5,862			10,078
Equity-based compensation		20,318			14,123			12,244
Acquisition costs		—			5,683			—
Other permanent differences and miscellaneous items		(5,973	)		592			(337	)
	$	(47,221	)	$	35,695		$	77,128

Changes in Balance of Gross Unrecognized Tax Benefits

The aggregate changes in the balance of gross unrecognized tax benefits were as follows:

	(in millions)
Balance as of June 27, 2010	$	190.5
Settlements and effective settlements with tax authorities		(24.2	)
Lapse of statute of limitations		(5.2	)
Increases in balances related to tax positions taken during prior periods		13.7
Decreases in balances related to tax positions taken during prior periods		(13.4	)
Increases in balances related to tax positions taken during current period		20.1
Balance as of June 26, 2011		181.5
Settlements and effective settlements with tax authorities		(0.2	)
Lapse of statute of limitations		(6.6	)
Increases in balances related to tax positions taken during prior periods		1.4
Decreases in balances related to tax positions taken during prior periods		(4.3	)
Increases in balances related to tax positions taken during current period		22.3
Tax positions assumed in Novellus transaction		149.7
Balance as of June 24, 2012		343.8
Settlements and effective settlements with tax authorities		(3.4	)
Lapse of statute of limitations		(51.4	)
Increases in balances related to tax positions taken during prior periods		11.3
Decreases in balances related to tax positions taken during prior periods		(11.3	)
Increases in balances related to tax positions taken during current period		35.2
Tax positions assumed in Novellus transaction		8.9
Balance as of June 30, 2013	$	333.1