Income Taxes (Tables)

12 Months Ended

Jun. 28, 2014

Components of provision for income taxes expense (benefit)

Reconciliation between federal statutory tax rate and effective tax rate

Reconciliations of the federal statutory tax rate to the effective tax rates are as follows:



	Years Ended
	June 28, 2014		June 29, 2013		June 30, 2012
Federal statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	1.3		1.1		1.8
Foreign tax rates, net of valuation allowances	(9.3	)	(7.2	)	(5.4	)
Release of valuation allowance, net of U.S. tax expense	(4.8	)	(6.4	)	(2.8	)
Change in contingency reserves	(0.1	)	0.4		0.5
Tax audit settlements	(0.6	)	(6.0	)	(1.0	)
Other, net	0.7		1.2		0.2
Effective tax rate	22.2	%	18.1	%	28.3	%

Components of deferred tax assets and liabilities

The significant components of deferred tax assets and liabilities, included primarily in “other assets” on the consolidated balance sheets, are as follows:



	June 28, 2014			June 29, 2013
	(Thousands)
Deferred tax assets:
Federal, state and foreign tax loss carry-forwards	$	336,334		$	333,940
Inventories valuation	$	18,442		$	19,509
Receivables valuation	26,022			27,185
Various accrued liabilities and other	(1,673		)	33,031
	379,125			413,665
Less — valuation allowance	(182,123		)	(230,821		)
	197,002			182,844
Deferred tax liabilities:
Depreciation and amortization of property, plant and equipment	(46,294		)	(50,469		)
Net deferred tax assets	$	150,708		$	132,375

Reconciliation of the beginning and ending accrual balance for unrecognized tax benefits

Reconciliations of the beginning and ending liability balances for unrecognized tax benefits are as follows:



	June 28, 2014			June 29, 2013
	(Thousands)
Balance at beginning of year	$	123,930		$	146,626
Additions for tax positions taken in prior periods, including interest	15,966			11,732
Reductions for tax positions taken in prior periods, including interest	(880		)	(33,776		)
Additions for tax positions taken in current period	8,364			7,445
Reductions related to settlements with taxing authorities	(14,250		)	(9,064		)
Reductions related to the lapse of applicable statutes of limitations	(7,571		)	(2,812		)
Adjustments related to foreign currency translation	2,662			3,779
Balance at end of year	$	128,221		$	123,930

Summary of major jurisdiction

The years remaining subject to audit, by major jurisdiction, are as follows:



Jurisdiction		Fiscal Year
United States (federal and state)		2012 - 2014
Belgium		2010 - 2014
Germany, Taiwan and United Kingdom		2009 -2014
Netherlands, Singapore and Hong Kong		2008 -2014