Income Taxes (Tables)

12 Months Ended

Jun. 29, 2013

The components of the provision for income taxes are as follows:

The following table reconciles the United States statutory income tax rate with our effective income tax rate:



Fiscal Years	2013		2012		2011
United States statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal tax benefit	3.8		2.8		2.7
Foreign earnings taxed at different rates	(0.4	)	(2.8	)	1.1
Change in tax contingency reserve	(1.7	)	2.8		0.4
Share-based compensation	—		0.1		0.6
Disposition of subsidiary	—		(3.8	)	—
Permanent differences and other, net	(0.6	)	(0.8	)	0.1
Effective income tax rate	36.1	%	33.3	%	39.9	%

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows:



Fiscal Years	2013			2012
Deferred tax liabilities:
Inventory	$	(18,190	)	$	(20,699	)
Depreciation	(18,819		)	(20,182		)
Intangibles	(44,757		)	(40,944		)
Derivative financial instruments	(563		)	—
Other	(2,707		)	(14		)
Total deferred tax liabilities	(85,036		)	(81,839		)
Deferred tax assets:
Compensation and employees benefits	44,577			47,367
Accruals and reserves	9,208			13,127
Share-based payments	3,778			5,645
Derivative financial instruments	—			552
Other	5,293			5,955
Gross deferred tax assets	62,856			72,646
Less valuation allowance	(3,876		)	(4,719		)
Total deferred tax assets	58,980			67,927
Net deferred tax liabilities	$	(26,056	)	$	(13,912	)

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:



Fiscal Years	2013			2012
Beginning balance	$	11,328		$	14,157
Tax positions related to current year:
Gross increase	1,550			2,068
Gross decrease	—			—
Tax positions related to prior years:
Gross increase	170			1,605
Gross decrease	(161		)	(3,599		)
Settlements	(2,147		)	(47		)
Lapses in statutes of limitations	(1,402		)	(2,856		)
Ending balance	$	9,338		$	11,328