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Income Taxes (Tables)

12 Months Ended

Jun. 26, 2011

Domestic and Foreign Income (Loss) From Continuing Operations Before Income Taxes

Income (loss) before income taxes for the fiscal years ended June 26, 2011, June 27, 2010 and June 28, 2009 is as follows (in thousands):

	Fiscal Years Ended
	2011		2010			2009
Domestic	$	81,587	$	(19,787	)	$	(130,566	)
Foreign		76,205		48,422			(21,512	)
Total income (loss) before income taxes	$	157,792	$	28,635		$	(152,078	)

(Benefit From) Provision For Income Taxes From Continuing Operations

The (benefit from) provision for income taxes for the fiscal years ended June 26, 2011, June 27, 2010 and June 28, 2009 is as follows (in thousands):

	Fiscal Years Ended
	2011			2010			2009
Current income taxes:
Domestic	$	190		$	(31,307	)	$	(15,008	)
Foreign		10,749			(15,000	)		6,246
	$	10,939		$	(46,307	)	$	(8,762	)
Deferred income taxes:
Domestic	$	(6,551	)	$	(4,983	)		78,117
Foreign		(13,142	)		(902	)		25,984
		(19,693	)		(5,885	)		104,101
Total (benefit) provision	$	(8,754	)	$	(52,192	)	$	95,339

Effective Tax Rate Reconciliation On Pretax Income (Loss) From Continuing Operations

The Company’s effective tax rate on pretax income (loss) differs from the U.S. federal statutory tax rate for the fiscal years June 26, 2011, June 27, 2010 and June 28, 2009, as follows:

	Fiscal Years Ended
	2011			2010			2009
Statutory tax rate		35.0	%		35.0	%		(35.0	)%
State taxes, net of federal benefit		(6.0	)		6.0			―
Change in valuation allowance		(19.2	)		(8.6	)		105.1
Multijurisdictional taxation		(9.5	)		(35.7	)		(4.7	)
Actual and deemed foreign dividends		2.1			51.3			23.9
Foreign tax credit		(5.8	)		(21.5	)		(12.3	)
Research and development credit		―			(4.7	)		(3.1	)
Uncertain tax positions		(2.2	)		(205.1	)		(14.6	)
Goodwill impairment		―			―			3.6
Other, net		―			1.0			(0.2	)
Effective tax rate (benefit)		(5.6	)%		(182.3	)%		62.7	%

Major Components of Net Deferred Tax Assets (Liabilities)

The major components of the net deferred tax assets (liabilities) as of June 26, 2011 and June 27, 2010 are as follows (in thousands):

	June 26, 2011			June 27, 2010
Deferred tax assets:
Accrued expenses	$	14,436		$	16,348
Accrued compensation		22,717			18,501
Property, plant and equipment		50,053			63,975
Unrealized loss on securities		―			318
Losses carryforward		55,784			58,477
Research and experimental credits		43,463			39,302
Other tax credits		22,683			25,752
Other		1,332			22,350
Total deferred tax assets		210,468			245,023
Valuation allowance		(182,563	)		(236,405	)
Deferred tax liabilities:
Unrealized gain on securities		(4,637	)		(4,682	)
Prepaid expenses		(1,538	)		―
Other		(224	)		(1,133	)
Total deferred tax liabilities		(6,399	)		(5,815	)
Net deferred tax assets	$	21,506		$	2,803

Reconciliation of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits from June 28, 2009 to June 26, 2011 is as follows (in thousands):

Beginning balances of June 28, 2009	$	66,224
Increases for positions taken in current year		23,738
Increases for positions taken in a prior year		6,506
Decreases for positions taken in a prior year		(11,548	)
Decreases for settlements with taxing authorities		(35,275	)
Decreases for lapses in the applicable statute of limitation		(4,433	)
Unrecognized tax benefits at June 27, 2010	$	45,212

Increases for positions taken in current year	$	2,708
Increases for positions taken in a prior year		2,347
Decreases for positions taken in a prior year		(1,810	)
Decreases for settlements with taxing authorities
Decreases for lapses in the applicable statute of limitation		(2,400	)
Unrecognized tax benefits at June 26, 2011	$	46,057

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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