Income Taxes (Tables)

12 Months Ended

Jun. 29, 2024

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, 2024		July 1, 2023		July 2, 2022
Domestic	$	(95.8)	$	(37.6)	$	(82.6)
Foreign	107.4		98.3		147.7
Income before income taxes	$	11.6	$	60.7	$	65.1

Schedule of Income Tax Expense (Benefit)

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

	Years Ended
	June 29, 2024		July 1, 2023		July 2, 2022
Federal:
Current	$	0.3	$	—	$	—
Deferred	—		—		—
Total federal income tax expense	0.3		—		—
State:
Current	3.3		2.6		(2.2)
Deferred	—		—		—
Total state income tax expense (benefit)	3.3		2.6		(2.2)
Foreign:
Current	32.8		27.6		63.2
Deferred	1.0		5.0		(11.4)
Total foreign income tax expense	33.8		32.6		51.8
Total income tax expense	$	37.4	$	35.2	$	49.6

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 29, 2024		July 1, 2023		July 2, 2022
Income tax expense computed at federal statutory rate	$	2.4	$	12.8	$	13.7
Withholding Taxes	5.6		8.0		8.7
U.S. inclusion of foreign earnings	3.8		1.3		19.8
Internal restructuring	1.2		1.2		10.1
Valuation allowance	17.5		0.5		3.3
Foreign rate differential	3.8		4.5		6.9
Reserves	1.2		2.9		1.7
Permanent items	(0.6)		1.1		0.3
Fair value change of the earn-out liability	(2.0)		(1.0)		0.1
Impact of prior years’ taxes	3.0		(0.5)		(8.6)
Research and experimentation benefits and other tax credits	—		(1.3)		(1.1)
State taxes	—		2.6		0.8
Disallowed compensations	2.0		3.3		2.2
Senior Convertible Notes settlements	—		—		(8.3)
Other	(0.5)		(0.2)		—
Income tax expense	$	37.4	$	35.2	$	49.6

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, 2024		July 1, 2023		July 2, 2022
Gross deferred tax assets:
Tax credit carryforwards	$	138.2	$	136.4	$	136.7
Net operating loss carryforwards	381.0		437.5		491.8
Capital loss carryforwards	1.0		1.1		1.0
Inventories	37.2		40.2		34.5
Accruals and reserves	53.0		58.1		58.5
Intangibles including acquisition-related items	510.6		597.5		603.6
Capitalized research costs	312.3		186.7		100.3
Other	43.5		44.3		45.7
Gross deferred tax assets	1,476.8		1,501.8		1,472.1
Valuation allowance	(1,336.0)		(1,351.5)		(1,320.8)
Deferred tax assets	140.8		150.3		151.3
Gross deferred tax liabilities:
Acquisition-related items	(29.4)		(30.9)		(31.9)
Tax on unrepatriated earnings	(9.5)		(13.7)		(7.2)
Foreign branch taxes	(14.6)		(15.0)		(17.8)
Other	(16.5)		(17.7)		(17.6)
Deferred tax liabilities	(70.0)		(77.3)		(74.5)
Total net deferred tax assets	$	70.8	$	73.0	$	76.8

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 29, 2024	$	1,351.5	$	132.7	$	(148.2)	$	1,336.0
Year Ended July 1, 2023	$	1,320.8	$	114.4	$	(83.7)	$	1,351.5
Year Ended July 2, 2022	$	1,308.9	$	101.7	$	(89.8)	$	1,320.8

(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, and 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 3, 2021 and June 29, 2024 is as follows (in millions):

Balance at July 3, 2021	$	59.1
Additions based on tax positions related to current year	0.4
Additions based on tax positions related to prior year	2.6
Reduction based on tax positions related to prior year	(2.6)
Reductions for lapse of statute of limitations	(6.1)
Balance at July 2, 2022	53.4
Additions based on tax positions related to current year	2.7
Addition based on tax positions related to prior year	0.1
Reduction based on tax positions related to prior year	(1.1)
Reductions for lapse of statute of limitations	(0.2)
Balance at July1, 2023	54.9
Additions based on tax positions related to current year	1.2
Addition based on tax positions related to prior year	0.5
Reduction based on tax positions related to prior year	(1.9)
Reductions for lapse of statute of limitations	(0.2)
Balance at June 29, 2024	$	54.5

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, 2024:

Tax Jurisdictions	Tax Years
United States(1)	2005 and onward
Canada	2022 and onward
China	2019 and onward
France	2021 and onward
Germany	2018 and onward
Korea	2019 and onward
United Kingdom	2023 and onward

(1) 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.