Income taxes (Tables)

12 Months Ended

Jul. 02, 2016

Income taxes

Components of income tax expense ("tax provision")

	Years Ended
	July 2, 2016		June 27, 2015		June 28, 2014
	(Thousands)
Current:
Federal	$	29,511	$	41,757	$	71,714
State and local		4,634		4,496		8,038
Foreign		114,746		76,363		91,415
Total current taxes		148,891		122,616		171,167
Deferred:
Federal		4,305		39,246		11,305
State and local		2,277		5,264		3,810
Foreign		8,505		(26,074)		(30,759)
Total deferred taxes		15,087		18,436		(15,644)
Income tax expense	$	163,978	$	141,052	$	155,523

Reconciliations of the federal statutory tax rate to the effective tax rates

	Years Ended
	July 2, 2016		June 27, 2015		June 28, 2014
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	0.4		1.6		1.3
Foreign tax rates, net of valuation allowances	(10.3)		(8.8)		(9.3)
Release of valuation allowance, net of U.S. tax expense	(1.4)		(7.2)		(4.8)
Change in contingency reserves	(0.6)		0.5		(0.1)
Tax audit settlements	(0.2)		(2.3)		(0.6)
Other, net	1.6		1.0		0.7
Effective tax rate	24.5	%	19.8	%	22.2	%

Components of deferred tax assets and liabilities

	July 2,		June 27,
	2016		2015
	(Thousands)
Deferred tax assets:
Federal, state and foreign net operating loss carry-forwards	$	131,544	$	249,385
Inventories valuation		21,766		16,806
Receivables valuation		10,996		16,989
Various accrued liabilities and other		15,410		14,427
		179,716		297,607
Less — valuation allowances		(101,208)		(111,381)
		78,508		186,226
Deferred tax liabilities:
Depreciation and amortization of property, plant and equipment		(88,663)		(67,828)
Net deferred tax assets	$	(10,155)	$	118,398

Reconciliation of the beginning and ending liability balances for unrecognized tax benefits

	July 2, 2016		June 27, 2015
	(Thousands)
Balance at beginning of year	$	103,923	$	128,221
Additions for tax positions taken in prior periods, including interest		10,217		7,713
Reductions for tax positions taken in prior periods, including interest		(5,058)		(17,810)
Additions for tax positions taken in current period		8,047		4,233
Reductions related to settlements with taxing authorities		(2,471)		(243)
Reductions related to the lapse of applicable statutes of limitations		(13,073)		(6,028)
Adjustments related to foreign currency translation		(145)		(12,163)
Balance at end of year	$	101,440	$	103,923

Years remaining subject to audit, by major jurisdiction

Jurisdiction	Fiscal Year
United States (Federal and state)	2012 - 2016
Taiwan	2011 - 2016
Hong Kong and Germany	2010 - 2016
Netherlands and Singapore	2008 - 2016
Belgium	2014 - 2016
United Kingdom	2009 - 2016