Income taxes (Tables)

12 Months Ended

Jul. 01, 2017

Income taxes

Components of income tax expense ("tax provision")

	Years Ended
	July 1, 2017		July 2, 2016		June 27, 2015
	(Thousands)
Current:
Federal	$	(45,351)	$	(16,934)	$	5,497
State and local		4,209		(33)		(1,959)
Foreign		106,441		92,033		60,082
Total current taxes		65,299		75,066		63,620
Deferred:
Federal		(30,025)		5,573		39,905
State and local		(3,934)		1,351		6,774
Foreign		15,713		5,114		(24,163)
Total deferred taxes		(18,246)		12,038		22,516
Income tax expense	$	47,053	$	87,104	$	86,136

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

	Years Ended
	July 1, 2017		July 2, 2016		June 27, 2015
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	(1.7)		0.3		0.8
Foreign tax rates, net of valuation allowances	(23.5)		(12.7)		(11.1)
Establishment/(release) of valuation allowance, net of U.S. tax expense	1.3		(1.7)		(9.0)
Change in contingency reserves	3.6		(2.5)		0.9
Tax audit settlements	0.1		(0.7)		(2.9)
Other, net	0.4		0.5		1.4
Effective tax rate - continuing operations	15.2	%	18.2	%	15.1	%

Components of deferred tax assets and liabilities

	July 1,		July 2,
	2017		2016
	(Thousands)
Deferred tax assets:
Federal, state and foreign net operating loss carry-forwards	$	269,576	$	94,892
Inventories valuation		30,330		20,635
Receivables valuation		9,209		9,188
Various accrued liabilities and other		46,922		35,929
		356,037		160,644
Less — valuation allowances		(241,687)		(63,694)
		114,350		96,950
Deferred tax liabilities:
Depreciation and amortization of property, plant and equipment		(152,101)		(99,154)
Net deferred tax liabilities	$	(37,751)	$	(2,204)

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

	July 1, 2017		July 2, 2016
	(Thousands)
Balance at beginning of year	$	58,830	$	60,433
Additions for tax positions taken in prior periods, including interest		10,476		3,496
Reductions for tax positions taken in prior periods, including interest		(5,656)		(6,349)
Additions for tax positions taken in current period		13,659		7,577
Reductions related to settlements with taxing authorities		(203)		(725)
Reductions related to the lapse of applicable statutes of limitations		(5,790)		(13,188)
Adjustments related to foreign currency translation		2,772		(212)
Activity of discontinued operations		10,864		7,798
Additions from acquisitions		21,834		—
Balance at end of year	$	106,786	$	58,830

Years remaining subject to audit, by major jurisdiction

Jurisdiction	Fiscal Year
United States (Federal and state)	2013 - 2017
Taiwan	2012 - 2017
Hong Kong	2011 - 2017
Germany	2010 - 2017
Singapore	2008 - 2017
Belgium	2014 - 2017
United Kingdom	2009 - 2017