Income Taxes (Tables)

12 Months Ended

Jun. 29, 2019

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Taxes

The Company’s income (loss) before income taxes consisted of the following (in millions):

	Years Ended
	June 29, 2019			June 30, 2018			July 1, 2017
Domestic	$	(66.9	)	$	(112.5	)	$	90.5
Foreign	106.2			76.8			89.5
(Loss) income before income taxes	$	39.3		$	(35.7	)	$	180.0

Schedule of Income Tax Expense (Benefit)

The Company’s income tax expense (benefit) consisted of the following (in millions):

	Years Ended
	June 29, 2019			June 30, 2018			July 1, 2017
Federal:
Current	$	—		$	(4.5	)	$	—
Deferred	—			(1.7		)	1.0
Total federal income tax (benefit) expense	—			(6.2		)	1.0
State:
Current	0.1			—			0.2
Deferred	—			(0.1		)	—
Total state income tax (benefit) expense	0.1			(0.1		)	0.2
Foreign:
Current	33.3			22.0			18.1
Deferred	(1.9		)	(2.8		)	2.1
Total foreign income tax expense	31.4			19.2			20.2
Total income tax expense	$	31.5		$	12.9		$	21.4

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Company’s income tax expense (benefit) at the federal statutory rate to the income tax expense at the effective tax rate is as follows (in millions):

	Years Ended
	June 29, 2019			June 30, 2018			July 1, 2017
Income tax (benefit) expense computed at federal statutory rate	$	8.3		$	(10.0	)	$	63.0
US Inclusion of foreign earnings	16.0			1.0			1.9
Tax Reform E&P Inclusion	—			14.3			—
Valuation allowance	1.0			13.0			(26.0		)
Foreign rate differential	8.3			(1.1		)	(5.4		)
AMT Tax Repeal	—			(4.5		)	—
Permanent items	(2.7		)	0.7			(11.1		)
Reversal of previously accrued taxes	(1.2		)	(1.2		)	(0.2		)
Withholding Taxes	1.5			0.7			0.4
Research and experimentation benefits and other tax credits	—			(0.7		)	(1.4		)
Other	0.3			0.7			0.2
Income tax expense	$	31.5		$	12.9		$	21.4

Schedule of Net Deferred Taxes

The components of the Company’s net deferred taxes consisted of the following (in millions):

	Balance as of
	June 29, 2019			June 30, 2018			July 1, 2017
Gross deferred tax assets:
Tax credit carryforwards	$	164.3		$	158.8		$	150.6
Net operating loss carryforwards	1,206.9			1,219.0			1,875.4
Capital loss carryforwards	63.9			63.9			102.4
Inventories	9.3			4.0			5.4
Accruals and reserves	56.0			20.7			28.4
Investments	0.5			0.5			0.7
Other	42.5			43.3			51.9
Acquisition-related items	42.1			31.5			55.5
Gross deferred tax assets	1,585.5			1,541.7			2,270.3
Valuation allowance	(1,405.3		)	(1,382.1		)	(2,095.0		)
Deferred tax assets	180.2			159.6			175.3
Gross deferred tax liabilities:
Acquisition-related items	(33.5		)	(26.8		)	(6.5		)
Undistributed foreign earnings	—			—			(3.0		)
Foreign branch taxes	(22.0		)	—			—
Other	(30.9		)	(39.0		)	(59.4		)
Deferred tax liabilities	(86.4		)	(65.8		)	(68.9		)
Total net deferred tax assets	$	93.8		$	93.8		$	106.4

Summary of Activity Of Deferred Tax Valuation Allowance

The following table provides information about the activity of our deferred tax valuation allowance (in millions):

Deferred Tax Valuation Allowance	Balance at Beginning of Period		Additions Charged to Expenses or Other Accounts(1)		Deductions Credited to Expenses or Other Accounts(2)			Balance at End of Period
Year Ended June 29, 2019	$	1,382.1	$	72.8	$	(49.6	)	$	1,405.3
Year Ended June 30, 2018	$	2,095.0	$	31.7	$	(744.6	)	$	1,382.1
Year Ended July 1, 2017	$	2,172.5	$	44.4	$	(121.9	)	$	2,095.0

(1) Additions include current year additions charged to expenses and current year build due to increases in net deferred tax assets, return to provision true-ups, other adjustments.

(2)

Deductions include current year releases credited to expenses and current year reductions due to decreases in net deferred tax assets, return to provision true-ups, other adjustments and increases in deferred tax liabilities

Schedule of Reconciliation of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits between July 2, 2016 and June 29, 2019 is as follows (in millions):

Balance at July 2, 2016	$	41.7
Additions based on tax positions related to current year	1.6
Additions based on tax positions related to prior year	0.9
Reduction based on tax positions related to prior year	(3.5		)
Reductions for lapse of statute of limitations	(1.8		)
Balance at July 1, 2017	38.9
Additions based on tax positions related to current year	4.4
Additions based on tax positions related to prior year	5.6
Reductions for lapse of statute of limitations	(0.3		)
Balance at June 30, 2018	48.6
Additions based on tax positions related to current year	1.7
Additions based on tax positions related to prior year	7.3
Reduction based on tax positions related to prior year	(2.8		)
Reductions for lapse of statute of limitations	(0.6		)
Balance at June 29, 2019	$	54.2

Schedule of Tax Years That Remain Subject To Examination

The following table summarizes the Company’s major tax jurisdictions and the tax years that remain subject to examination by such jurisdictions as of June 29, 2019:

Tax Jurisdictions	Tax Years
United States*	2000 and onward
Canada	2018 and onward
China	2014 and onward
France	2016 and onward
Germany	2014 and onward
Korea	2014 and onward
United Kingdom	2018 and onward

*Although the Company is generally subject to a three year statute of limitations in the U.S., tax authorities maintain the ability to adjust tax attribute carryforwards generated in earlier years.