Income Taxes (Tables)

12 Months Ended

Jun. 29, 2014

Income Loss Before Income Taxes

The components of income (loss) before income taxes were as follows:

	Year Ended
	June 29, 2014		June 30, 2013			June 24, 2012
	(in thousands)
United States	$	78,076	$	(46,392	)	$	(6,950	)
Foreign		645,287		113,050			211,368
	$	723,363	$	66,658		$	204,418

Provision Benefit For Income Taxes

Significant components of the provision (benefit) for income taxes attributable to income before income taxes were as follows:

	Year Ended
	June 29, 2014			June 30, 2013			June 24, 2012
	(in thousands)
Federal:
Current	$	31,762		$	(1,096	)	$	5,038
Deferred		10,692			(60,172	)		(1,033	)
	$	42,454		$	(61,268	)	$	4,005
State:
Current	$	3,192		$	3,332		$	1,297
Deferred		(869	)		(6,351	)		336
	$	2,323		$	(3,019	)	$	1,633
Foreign:
Current	$	49,273		$	20,640		$	33,871
Deferred		(2,976	)		(3,574	)		(3,814	)
	$	46,297		$	17,066		$	30,057
Total Provision (Benefit) for Income Taxes	$	91,074		$	(47,221	)	$	35,695

Components of Net Deferred Tax Assets and Liabilities

Significant components of the Company’s net deferred tax assets and liabilities were as follows:

	June 29, 2014			June 30, 2013
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	170,028		$	169,371
Allowances and reserves		126,895			94,720
Equity-based compensation		18,019			19,586
Inventory valuation differences		16,257			22,833
Other		12,065			11,286
Gross deferred tax assets		343,264			317,796
Valuation allowance		(74,439	)		(76,594	)
Net deferred tax assets		268,825			241,202
Deferred tax liabilities:
Intangible Assets		(87,329	)		(94,836	)
Convertible debt		(117,112	)		(98,482	)
Temporary differences for capital assets		(32,350	)		(41,470	)
Amortization of goodwill		(11,409	)		(9,950	)
Unremitted earnings of a foreign subsidiary		(34,346	)		(2,936	)
Other		(11,017	)		(11,645	)
Gross deferred tax liabilities		(293,563	)		(259,319	)
Net deferred tax assets	$	(24,738	)	$	(18,117	)

Reconciliation of Income Tax Expense Provided at Federal Statutory Rate to Actual Income Expense

A reconciliation of income tax expense provided at the federal statutory rate (35% in fiscal years 2014, 2013, and 2012) to actual income expense is as follows:

	Year Ended
	June 29, 2014			June 30, 2013			June 24, 2012
	(in thousands)
Income tax expense computed at federal statutory rate	$	253,177		$	23,332		$	71,546
State income taxes, net of federal tax benefit		1,884			(13,588	)		(4,895	)
Foreign income taxed at different rates		(164,130	)		(40,255	)		(51,425	)
Tax credits		(15,650	)		(42,593	)		(5,791	)
State valuation allowance, net of federal tax benefit		(1,707	)		11,538			5,862
Equity-based compensation		23,167			20,318			14,123
Acquisition costs		—			—			5,683
Other permanent differences and miscellaneous items		(5,667	)		(5,973	)		592
	$	91,074		$	(47,221	)	$	35,695

Changes in Balance of Gross Unrecognized Tax Benefits

The aggregate changes in the balance of gross unrecognized tax benefits were as follows:

	(in millions)
Balance as of June 26, 2011	$	181.5
Settlements and effective settlements with tax authorities		(0.2	)
Lapse of statute of limitations		(6.6	)
Increases in balances related to tax positions taken during prior periods		1.4
Decreases in balances related to tax positions taken during prior periods		(4.3	)
Increases in balances related to tax positions taken during current period		22.3
Tax positions assumed in Novellus transaction		149.7
Balance as of June 24, 2012		343.8
Settlements and effective settlements with tax authorities		(3.4	)
Lapse of statute of limitations		(51.4	)
Increases in balances related to tax positions taken during prior periods		11.3
Decreases in balances related to tax positions taken during prior periods		(11.3	)
Increases in balances related to tax positions taken during current period		35.2
Tax positions assumed in Novellus transaction		8.9
Balance as of June 30, 2013		333.1
Lapse of statute of limitations		(16.0	)
Increases in balances related to tax positions taken during prior periods		6.2
Decreases in balances related to tax positions taken during prior periods		(4.2	)
Increases in balances related to tax positions taken during current period		33.0
Balance as of June 29, 2014	$	352.1