Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Components of Income Before Income Taxes

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

	Fiscal Years Ended
	June 30, 2013		June 24, 2012			June 26, 2011
Domestic		$31,046		($5,360	)		$112,869
Foreign	76,511		53,007			65,358
Total		$107,557		$47,647			$178,227

Components of Income Tax Expense

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

	Fiscal Years Ended
	June 30, 2013			June 24, 2012			June 26, 2011
Current:
Federal		$483			($4,031	)		$31,503
Foreign	18,127			13,125			13,796
State	1,777			566			2,736
Total Current	20,387			9,660			48,035
Deferred:
Federal	2,226			(4,786		)	(4,232		)
Foreign	(177		)	(450		)	(11,601		)
State	(1,804		)	(1,189		)	(475		)
Total Deferred	245			(6,425		)	(16,308		)
Income tax expense		$20,632			$3,235			$31,727

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 30, 2013			% of Income	June 24, 2012			% of Income	June 26, 2011			% of Income
Federal income tax provision at statutory rate		$37,645		35%		$16,676		35%		$62,378		35%
Increase (decrease) in income tax expense resulting from:
State tax provision, net of federal benefit	1,146			1%	68			0%	2,665			1%
State tax credits	(1,407		)	-1%	(1,028		)	-2%	(496		)	0%
Tax exempt interest	(853		)	-1%	(1,064		)	-2%	(1,646		)	-1%
48C investment tax credit	(5,252		)	-5%	(4,105		)	-9%	(4,023		)	-2%
Decrease in tax reserve	(361		)	0%	(2,677		)	-6%	(2,175		)	-1%
Research and development credits	(2,426		)	-2%	(694		)	-1%	(3,619		)	-2%
Increase (decrease) in valuation allowance	(6		)	0%	(13		)	0%	183			0%
Qualified production activities deduction	(866		)	-1%	(177		)	-1%	(2,714		)	-1%
Stock-based compensation	1,206			1%	336			1%	308			0%
Statutory rate differences	(10,184		)	-10%	(5,830		)	-12%	(16,117		)	-9%
Effect of tax rate change	—			0%	—			0%	(2,998		)	-2%
Other	1,990			2%	1,743			4%	(19		)	0%
Income tax expense		$20,632		19%		$3,235		7%		$31,727		18%

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 30, 2013			June 24, 2012
Deferred tax assets:
Compensation		$3,868			$2,594
Inventory	16,050			13,051
Sales return reserve and allowance for bad debts	4,483			2,710
Warranty reserve	947			2,668
Federal and state net operating loss carryforwards	617			2,353
Federal credits	3,174			290
State credits	4,215			3,982
48C investment tax credits	7,216			15,905
Investments	976			980
Stock-based compensation	27,142			27,586
Other	1,209			1,056
Total gross deferred assets	69,897			73,175
Less valuation allowance	(1,604		)	(1,611		)
Deferred tax assets, net	68,293			71,564
Deferred tax liabilities:
Property and equipment	(27,484		)	(29,307		)
Intangible assets	(37,921		)	(31,701		)
Available-for-sale securities	154			(1,570		)
Prepaid taxes and other	(997		)	(1,045		)
Total gross deferred liability	(66,248		)	(63,623		)
Deferred tax asset/(liability), net		$2,045			$7,941

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 30, 2013
	Asset					Liabilities
	Current		Noncurrent			Current		Noncurrent
U.S. federal income taxes		$15,707		$—			$—		($25,504	)
Hong Kong and other income taxes	10,418		1,424		*	—		—
		$26,125		$1,424			$—		($25,504	)

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

	Balance at June 24, 2012
	Asset					Liabilities
	Current		Noncurrent			Current		Noncurrent
U.S. federal income taxes		$13,461		$—			$—		($15,609	)
Hong Kong and other income taxes	8,283		1,931		*	—		—
		$21,744		$1,931			$—		($15,609	)

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

Reconciliation of the Change in Uncertain Tax Positions

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

	June 30, 2013			June 24, 2012			June 26, 2011
Beginning Balance		$4,421			$6,987			$7,602
Increases related to prior year tax positions	546			—			741
Decreases related to prior year tax positions	—			(1,966		)	—
Expiration of statute of limitations for assessment of taxes	(2,235		)	(600		)	(1,356		)
Ending Balance		$2,732			$4,421			$6,987

The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the income tax expense line item in the Consolidated Statements of Income. Total interest and penalties accrued were as follows (in thousands):

	June 30, 2013		June 24, 2012
Accrued interest and penalties		$154		$284

Total interest and penalties recognized were as follows (in thousands):

	June 30, 2013			June 24, 2012			June 26, 2011
Recognized interest and penalties (benefit)		($130	)		($292	)		($330	)