Income Taxes (Tables)

12 Months Ended

Jun. 28, 2015

Income Loss Before Income Taxes

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

	June 28, 2015		June 29, 2014		June 30, 2013
	(in thousands)
United States	$	72,728	$	78,076	$	(46,392	)
Foreign		668,122		645,287		113,050
	$	740,850	$	723,363	$	66,658

Provision Benefit For Income Taxes

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

	June 28, 2015			June 29, 2014			June 30, 2013
	(in thousands)
Federal:
Current	$	16,795		$	31,762		$	(1,096	)
Deferred		12,115			10,692			(60,172	)
	$	28,910		$	42,454		$	(61,268	)
State:
Current	$	1,376		$	3,192		$	3,332
Deferred		158			(869	)		(6,351	)
	$	1,534		$	2,323		$	(3,019	)
Foreign:
Current	$	61,551		$	49,273		$	20,640
Deferred		(6,722	)		(2,976	)		(3,574	)
	$	54,829		$	46,297		$	17,066
Total Provision (Benefit) for Income Taxes	$	85,273		$	91,074		$	(47,221	)

Components of Net Deferred Tax Assets

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

	June 28, 2015			June 29, 2014
	(in thousands)
Deferred tax assets:
Tax carryforwards	$	129,234		$	170,028
Allowances and reserves		131,079			126,895
Equity-based compensation		21,086			18,019
Inventory valuation differences		15,167			16,257
Other		13,942			12,661
Gross deferred tax assets		310,508			343,860
Valuation allowance		(85,620	)		(74,439	)
Net deferred tax assets		224,888			269,421
Deferred tax liabilities:
Intangible Assets		(64,725	)		(87,329	)
Convertible debt		(130,991	)		(117,112	)
Temporary differences for captial assets		(37,635	)		(32,350	)
Amortization of goodwill		(12,502	)		(11,409	)
Unremitted earnings of foreign subsidiaries		(66,412	)		(40,286	)
Other		(6,100	)		(5,673	)
Gross deferred tax liabilities		(318,365	)		(294,159	)
Net deferred tax liabilities	$	(93,477	)	$	(24,738	)

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 2015, 2014, and 2013) to actual income tax expense (benefit) is as follows:

	June 28, 2015			June 29, 2014			June 30, 2013
	(in thousands)
Income tax expense computed at federal statutory rate	$	259,297		$	253,177		$	23,332
State income taxes, net of federal tax benefit		(8,611	)		1,884			(13,588	)
Foreign income taxed at different rates		(175,581	)		(164,130	)		(40,255	)
Tax credits		(24,416	)		(15,650	)		(42,593	)
State valuation allowance, net of federal tax benefit		8,594			(1,707	)		11,538
Equity-based compensation		28,845			23,167			20,318
Other permanent differences and miscellaneous items		(2,855	)		(5,667	)		(5,973	)
	$	85,273		$	91,074		$	(47,221	)

Changes in Balance of Gross Unrecognized Tax Benefits

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

	(in thousands)
Balance as of June 24, 2012	$	343,837
Settlements and effective settlements with tax authorities		(3,422	)
Lapse of statute of limitations		(51,422	)
Increases in balances related to tax positions taken during prior periods		11,352
Decreases in balances related to tax positions taken during prior periods		(11,281	)
Increases in balances related to tax positions taken during current period		35,170
Tax positions assumed in Novellus transaction		8,880
Balance as of June 30, 2013		333,114
Lapse of statute of limitations		(16,048	)
Increases in balances related to tax positions taken during prior periods		6,225
Decreases in balances related to tax positions taken during prior periods		(4,182	)
Increases in balances related to tax positions taken during current period		33,003
Balance as of June 29, 2014		352,112
Settlements and effective settlements with tax authorities		(2,108	)
Lapse of statute of limitations		(9,376	)
Increases in balances related to tax positions taken during prior periods		3,729
Decreases in balances related to tax positions taken during prior periods		(12,615	)
Increases in balances related to tax positions taken during current period		31,810
Balance as of June 28, 2015	$	363,552