Income Taxes (Tables)

12 Months Ended

Jun. 27, 2020

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 27, 2020			June 29, 2019			June 30, 2018
Domestic	$	(35.1	)	$	(66.9	)	$	(112.5	)
Foreign	129.2			106.2			76.8
Income (loss) before income taxes	$	94.1		$	39.3		$	(35.7	)

Schedule of Income Tax Expense (Benefit)

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

	Years Ended
	June 27, 2020		June 29, 2019			June 30, 2018
Federal:
Current	$	—	$	—		$	(4.5	)
Deferred	—		—			(1.7		)
Total federal income tax (benefit)	—		—			(6.2		)
State:
Current	2.7		0.1			—
Deferred	—		—			(0.1		)
Total state income tax (benefit) expense	2.7		0.1			(0.1		)
Foreign:
Current	50.1		33.3			22.0
Deferred	12.5		(1.9		)	(2.8		)
Total foreign income tax (benefit) expense	62.6		31.4			19.2
Total income tax expense	$	65.3	$	31.5		$	12.9

Schedule of Effective Income Tax Rate Reconciliation

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

	Years Ended
	June 27, 2020			June 29, 2019			June 30, 2018
Income tax (benefit) expense computed at federal statutory rate	$	19.8		$	8.3		$	(10.0	)
Withholding Taxes	34.2			1.5			0.7
US Inclusion of foreign earnings	12.8			16.0			1.0
Tax Reform E&P Inclusion	—			—			14.3
Valuation allowance	0.7			1.0			13.0
Foreign rate differential	4.5			4.8			(1.1		)
Reserves	2.3			3.5			0.4
AMT Tax Repeal	—			—			(4.5		)
Permanent items	(0.3		)	(1.4		)	0.7
Fair value change of the earn-out liability	(6.6		)	(1.3		)	—
Reversal of previously accrued taxes	(3.7		)	(1.2		)	(1.2		)
Research and experimentation benefits and other tax credits	(0.2		)	—			(0.7		)
State taxes	2.1			0.1			—
Other	(0.3		)	0.2			0.3
Income tax expense	$	65.3		$	31.5		$	12.9

Schedule of Net Deferred Taxes

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

	Balance as of
	June 27, 2020			June 29, 2019			June 30, 2018
Gross deferred tax assets:
Tax credit carryforwards	$	159.5		$	164.3		$	158.8
Net operating loss carryforwards	1,118.6			1,206.9			1,219.0
Capital loss carryforwards	63.9			63.9			63.9
Inventories	20.3			9.6			4.2
Accruals and reserves	61.6			55.6			20.5
Acquisition-related items	45.1			42.1			31.5
Capitalized research costs	72.0			—			—
Other	44.6			43.1			43.8
Gross deferred tax assets	1,585.6			1,585.5			1,541.7
Valuation allowance	(1,405.5		)	(1,405.3		)	(1,382.1		)
Deferred tax assets	180.1			180.2			159.6
Gross deferred tax liabilities:
Acquisition-related items	(31.8		)	(33.5		)	(26.8		)
Tax on unrepatriated earnings	(15.6		)	(1.8		)	(1.6		)
Foreign branch taxes	(21.4		)	(22.0		)	—
Other	(29.8		)	(29.1		)	(37.4		)
Deferred tax liabilities	(98.6		)	(86.4		)	(65.8		)
Total net deferred tax assets	$	81.5		$	93.8		$	93.8

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 27, 2020	$	1,405.3	$	95.1	$	(94.9	)	$	1,405.5
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

(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 1, 2017 and June 27, 2020 is as follows (in millions):

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
Additions based on tax positions related to current year	2.2
Additions based on tax positions related to prior year	0.3
Reduction based on tax positions related to prior year	(3.8		)
Reduction related to settlement	(0.4		)
Reductions for lapse of statute of limitations	(0.5		)
Balance at June 27, 2020	$	52.0

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 27, 2020:

Tax Jurisdictions	Tax Years
United States*	2001 and onward
Canada	2019 and onward
China	2015 and onward
France	2017 and onward
Germany	2015 and onward
Korea	2015 and onward
United Kingdom	2019 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.