Income Taxes (Tables)

12 Months Ended

Jun. 24, 2012

Income Tax Expense (Benefit) [Abstract]

Components of Income from Continuing Operations Before Income Taxes

The following are the components of income/(loss) before income taxes (in thousands):

	Fiscal Years Ended
	June 24, 2012			June 26, 2011		June 27, 2010
Domestic	$	(10,682	)	$	110,959	$	153,848
Foreign	58,329			67,268		51,624
Total	$	47,647		$	178,227	$	205,472

Components of Income Tax Expense from Continuing Operations

The following are the components of income tax (benefit)/expense (in thousands):

	Fiscal Years Ended
	June 24, 2012			June 26, 2011			June 27, 2010
Current:
Federal	$	(4,031	)	$	31,503		$	45,005
Foreign	13,125			13,796			12,963
State	566			2,736			6,260
Total Current	$	9,660		$	48,035		$	64,228
Deferred:
Federal	(6,665		)	(5,008		)	(8,180		)
Foreign	1,429			(10,825		)	(2,837		)
State	(1,189		)	(475		)	(29		)
Total Deferred	(6,425		)	(16,308		)	(11,046		)
Income tax expense	$	3,235		$	31,727		$	53,182

Schedule of Effective Income Tax Rate and Amount Reconciliation

Actual income tax expense differed from the amount computed by applying the U.S. federal tax rate of 35% to pre-tax earnings as a result of the following (in thousands, except percentages):

	Fiscal Years Ended
	June 24, 2012			% of Income	June 26, 2011			% of Income	June 27, 2010			% of Income
Federal income tax provision at statutory rate	$	16,676		35%	$	62,378		35%	$	71,916		35%
Increase (decrease) in income tax expense resulting from:
State tax provision, net of federal benefit	68			0%	2,169			1%	4,135			2%
Tax exempt interest	(1,064		)	-2%	(1,646		)	-1%	(1,089		)	-1%
Exam settlements	—			0%	—			0%	1,645			1%
48C investment tax credit	(4,105		)	-9%	(4,023		)	-2%	(1,401		)	-1%
Increase (decrease) in tax reserve	(2,677		)	-6%	(2,175		)	-1%	(3,462		)	-2%
Research and development credits	(694		)	-1%	(3,619		)	-2%	(1,092		)	-1%
Qualified production activities deduction	(177		)	0%	(2,714		)	-2%	(3,945		)	-2%
Statutory rate differences	(5,830		)	-12%	(16,117		)	-9%	(14,939		)	-7%
Effect of tax rate change	—			0%	(2,998		)	-2%	(707		)	0%
Other	1,038			2%	472			0%	2,121			1%
Income tax expense	$	3,235		7%	$	31,727		17%	$	53,182		25%

Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows (in thousands):

	June 24, 2012			June 26, 2011
Deferred tax assets:
Compensation	$	2,594		$	1,494
Inventory	13,051			10,132
Sales return reserve and allowance for bad debts	2,710			4,160
Warranty reserve	2,668			—
Federal and state net operating loss carryforwards	2,353			1,010
Federal credits	290			—
State credits	3,982			3,688
48C investment tax credits	15,905			11,176
Investments	980			970
Stock-based compensation	27,586			16,731
Other	1,056			2,071
Total gross deferred assets	73,175			51,432
Less valuation allowance	(1,611		)	(1,620		)
Deferred tax assets, net	71,564			49,812
Deferred tax liabilities:
Property and equipment	(29,307		)	(19,590		)
Intangible assets	(31,701		)	(29,952		)
Available-for-sale securities	(1,570		)	(2,629		)
Prepaid taxes and other	(1,045		)	(890		)
Total gross deferred liability	(63,623		)	(53,061		)
Deferred tax asset/(liability), net	$	7,941		$	(3,249	)

Components Giving Rise to Net Deferred Tax Assets (Liabilities) Included in Accompanying Consolidated Balance Sheet

The components giving rise to the net deferred tax assets (liabilities) have been included in the accompanying Consolidated Balance Sheet as follows (in thousands):

	Balance at June 24, 2012
	Asset					Liabilities
	Current		Noncurrent			Current		Noncurrent
U.S. federal income taxes	$	13,461	$	—		$	—	$	(15,735	)
Hong Kong and other income taxes	8,283		1,931		*	—		—
	$	21,744	$	1,931		$	—	$	(15,735	)

* This amount is included in Other Assets on the Consolidated Balance Sheets.

	Balance at June 26, 2011
	Asset					Liabilities
	Current		Noncurrent			Current		Noncurrent
U.S. federal income taxes	$	10,072	$	—		$	—	$	(21,902	)
Hong Kong and other income taxes	7,785		796		*	—		—
	$	17,857	$	796		$	—	$	(21,902	)

* This amount is included in Other Assets on the Consolidated Balance Sheets.

Reconciliation of Company's Change in Uncertain Tax Positions

The following is a tabular reconciliation of the Company’s change in uncertain tax positions (in thousands):

	June 24, 2012			June 26, 2011
Beginning Balance	$	6,987		$	7,602
Increases related to prior year tax positions	—			741
Decreases related to prior year tax positions	(1,966		)	—
Expiration of statute of limitations for assessment of taxes	(600		)	(1,356		)
Ending Balance	$	4,421		$	6,987