XML 28 R17.htm IDEA: XBRL DOCUMENT v3.5.0.2
Income Taxes
3 Months Ended
Sep. 25, 2016
Income Tax Disclosure [Abstract]  
Income Taxes

11.  Income Taxes

The provision for income taxes was as follows:

 

 

 

For the Three Months Ended

 

 

 

September 25, 2016

 

 

September 27, 2015

 

Provision for income taxes

 

$

3,726

 

 

$

3,940

 

Effective tax rate

 

 

29.0

%

 

 

33.6

%

 

The effective tax rates for the periods presented above are lower than the U.S. statutory rate of 35% primarily due to foreign income being taxed at lower rates and a decrease in the valuation allowance for the Company’s investment in PAL. These items were partially offset by losses in tax jurisdictions for which no tax benefit could be recognized and state and local income taxes net of federal benefits.

The Company regularly assesses the outcomes of both completed and ongoing examinations to ensure that the Company’s provision for income taxes is sufficient. Certain returns that remain open to examination have utilized carryforward tax attributes generated in prior tax years, including net operating losses, which could potentially be revised upon examination.

Components of the Company’s deferred tax valuation allowance are as follows: 

 

 

 

September 25, 2016

 

 

June 26, 2016

 

Investment in a former domestic unconsolidated affiliate

 

$

(6,320

)

 

$

(6,418

)

Equity-method investment in PAL

 

 

(1,650

)

 

 

(2,102

)

Other (1)

 

 

(5,030

)

 

 

(5,030

)

Total deferred tax valuation allowance

 

$

(13,000

)

 

$

(13,550

)

 

(1)

Other relates primarily to Renewables.