Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

Components of provision for income taxes expense (benefit)



	Years Ended
	June 30, 2012		July 2, 2011			July 3, 2010
	(Thousands)
Current:
Federal	$	94,237	$	64,476		$	61,892
State and local	19,466		11,724			9,789
Foreign	98,278		109,731			56,608
Total current taxes	211,981		185,931			128,289
Deferred:
Federal	6,896		41,029			24,251
State and local	758		5,273			1,290
Foreign	4,128		(30,336		)	20,883
Total deferred taxes	11,782		15,966			46,424
Provision for income taxes	$	223,763	$	201,897		$	174,713

Reconciliation between federal statutory tax rate and effective tax rate

Reconciliations of the federal statutory tax rate to the effective tax rates are as follows:



	Years Ended
	June 30, 2012		July 2, 2011		July 3, 2010
Federal statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	1.8		1.5		1.2
Foreign tax rates, net of valuation allowances	(5.4	)	(5.3	)	(6.6	)
Release of valuation allowance, net of U.S. tax expense (as discussed below)	(2.8	)	(7.4	)	—
Change in contingency reserves	0.5		1.4		2.6
Tax audit settlements	(1.0	)	(0.4	)	(1.6	)
Other, net	0.2		(1.6	)	(0.7	)
Effective tax rate	28.3	%	23.2	%	29.9	%

Components of deferred tax assets and liabilities

The significant components of deferred tax assets and liabilities, included primarily in “other assets” on the consolidated balance sheets, are as follows:



	June 30, 2012			July 2, 2011
	(Thousands)
Deferred tax assets:
Inventory valuation	$	13,298		$	13,680
Accounts receivable valuation	29,984			27,916
Federal, state and foreign tax loss carry-forwards	304,410			394,093
Various accrued liabilities and other	88,792			57,686
	436,484			493,375
Less — valuation allowance	(244,093		)	(310,772		)
	192,391			182,603
Deferred tax liabilities:
Depreciation and amortization of property, plant and equipment	(54,745		)	(43,302		)
Net deferred tax assets	$	137,646		$	139,301

Reconciliation of the beginning and ending accrual balance for unrecognized tax benefits

Reconciliations of the beginning and ending accrual balances for unrecognized tax benefits are as follows:



	June 30, 2012			July 2, 2011
	(Thousands)
Balance at beginning of year	$	175,151		$	132,828
Additions for tax positions taken in prior periods, including interest	19,262			40,218
Reductions for tax positions taken in prior periods, including interest	(35,898		)	(16,837		)
Additions for tax positions taken in current period	8,179			11,041
Reductions related to cash settlements with taxing authorities	(7,460		)	(616		)
Reductions related to the lapse of statute of limitations	(3,810		)	(1,565		)
Additions (reductions) related to foreign currency translation	(8,798		)	10,082
Balance at end of year	$	146,626		$	175,151

Summary of major jurisdiction



Jurisdiction		Fiscal Year
Singapore		2005 – 2012
Hong Kong		2006 – 2012
United States (federal and state), United Kingdom and Taiwan		2007 – 2012
Netherlands		2008 – 2012
Belgium and Germany		2010 – 2012