Income taxes (Tables)

12 Months Ended

Jun. 30, 2018

Income taxes

Components of income tax expense ("tax provision")

	Years Ended
	June 30, 2018		July 1, 2017		July 2, 2016
	(Thousands)
Current:
Federal	$	255,810	$	(45,351)	$	(16,934)
State and local		(3,174)		4,209		(33)
Foreign		104,156		106,441		92,033
Total current taxes		356,792		65,299		75,066
Deferred:
Federal		(70,172)		(30,025)		5,573
State and local		(10,551)		(3,934)		1,351
Foreign		11,897		15,713		5,114
Total deferred taxes		(68,826)		(18,246)		12,038
Income tax expense	$	287,966	$	47,053	$	87,104

Reconciliations of the federal statutory tax rate to the effective tax rates

	Years Ended
	June 30, 2018		July 1, 2017		July 2, 2016
U.S. federal statutory rate	28.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	(6.1)		(1.7)		0.3
Foreign tax rates, net of valuation allowances	(23.5)		(23.5)		(12.7)
Establishment/(release) of valuation allowance, net of U.S. tax expense	(0.1)		1.3		(1.7)
Change in contingency reserves	(7.4)		3.6		(2.5)
Tax audit settlements	4.5		0.1		(0.7)
Impact of the Act - transition tax	158.5		—		—
Impact of the Act - deferred tax effects	4.2		—		—
Goodwill impairment	35.1		—		—
Other, net	5.3		0.4		0.5
Effective tax rate - continuing operations	198.5	%	15.2	%	18.2	%

Components of deferred tax assets and liabilities

	June 30,		July 1,
	2018		2017
	(Thousands)
Deferred tax assets:
Federal, state and foreign net operating loss carry-forwards	$	296,282	$	269,576
Inventories valuation		26,125		30,330
Receivables valuation		8,332		9,209
Various accrued liabilities and other		39,419		46,922
		370,158		356,037
Less — valuation allowances		(239,483)		(241,687)
		130,675		114,350
Deferred tax liabilities:
Depreciation and amortization of property, plant and equipment		(84,250)		(152,101)
Net deferred tax assets (liabilities)	$	46,425	$	(37,751)

Reconciliation of the beginning and ending liability balances for unrecognized tax benefits

	June 30, 2018		July 1, 2017
	(Thousands)
Balance at beginning of year	$	106,786	$	58,830
Additions for tax positions taken in prior periods, including interest		22,362		10,476
Reductions for tax positions taken in prior periods, including interest		(18,753)		(5,656)
Additions for tax positions taken in current period		13,476		13,659
Reductions related to settlements with taxing authorities		(6,674)		(203)
Reductions related to the lapse of applicable statutes of limitations		(14,355)		(5,790)
Adjustments related to foreign currency translation		673		2,772
Activity of discontinued operations		—		10,864
Additions from acquisitions		3,089		21,834
Balance at end of year	$	106,604	$	106,786

Years remaining subject to audit, by major jurisdiction

Jurisdiction	Fiscal Year
United States (Federal and state)	2014 - 2018
Taiwan	2013 - 2018
Hong Kong	2012 - 2018
Germany	2010 - 2018
Singapore	2008 - 2018
Belgium	2015 - 2018
United Kingdom	2016 - 2018
Canada	2011 - 2018