v3.26.1
Income Taxes (Tables)
 12 Months Ended
Jun. 27, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) Before Income Taxes
The Company’s (loss) income before income taxes consisted of the following (in millions):
Years Ended
June 27, 2026June 28, 2025June 29, 2024
Domestic$(119.7)$(88.8)$(95.8)
Foreign136.0 127.4 107.4 
Income before income taxes and equity investment earnings$16.3 $38.6 $11.6 
Schedule of Income Tax Expense (Benefit)
The Company’s income tax (benefit) expense consisted of the following (in millions):
Years Ended
June 27, 2026June 28, 2025June 29, 2024
Federal:
Current$— $— $0.3 
Deferred— (23.2)— 
Total federal income tax (benefit) expense — (23.2)0.3 
State:
Current(0.4)(7.7)3.3 
Deferred— (1.8)— 
Total state income tax (benefit) expense (0.4)(9.5)3.3 
Foreign:
Current38.4 41.0 32.8 
Deferred9.5 (3.9)1.0 
Total foreign income tax expense 47.9 37.1 33.8 
Total income tax expense$47.5 $4.4 $37.4 
Schedule of Effective Income Tax Rate Reconciliation
A reconciliation of the Company’s income tax expense at the federal statutory rate to the income tax expense at the effective tax rate is as follows (in millions):
June 27, 2026
AmountPercent
U.S. federal statutory income tax rate$3.4 21.0 %
State and local income taxes, net of federal income tax effect(1)
0.1 0.5 %
Foreign tax effects:
China:
Statutory tax rate difference between China and United States3.8 23.6 %
Withholding taxes3.5 21.2 %
Other(0.4)(2.5)%
Germany:
Remeasurement of deferred tax assets and liabilities7.2 43.9 %
Other1.3 8.1 %
Other jurisdictions 3.1 19.6 %
Effect of cross-border tax laws:
U.S. inclusion of foreign earnings4.1 24.8 %
Changes in valuation allowances15.8 96.6 %
Tax credits(0.3)(2.1)%
Nontaxable or nondeductible items:
Fair value change of contingent consideration6.9 42.5 %
Disallowed compensation3.7 22.5 %
Stock-based compensation(5.0)(30.7)%
Permanent adjustments - other1.1 7.6 %
Changes in unrecognized tax benefits(0.8)(5.2)%
Effective tax rate$47.5 291.4 %
(1) The tax effect in this category primarily reflects state and local income taxes in Kansas, Maryland and Wisconsin.
A reconciliation of the Company’s income tax expense at the federal statutory rate to the income tax expense at the effective tax rate is as follows (in millions):
Years ended
June 28, 2025June 29, 2024
Income tax expense computed at federal statutory rate$8.1 $2.4 
Withholding taxes4.7 5.6 
U.S. inclusion of foreign earnings4.7 3.8 
Internal restructuring — 1.2 
Valuation allowance(14.4)17.5 
Foreign rate differential4.5 3.8 
Reserves(5.4)1.2 
Permanent items0.1 (0.6)
Fair value change of the contingent consideration(1.7)(2.0)
Impact of prior years’ taxes0.5 3.0 
Research and experimentation benefits and other tax credits(1.7)— 
State taxes1.6 — 
Disallowed compensations3.2 2.0 
Acquisition costs0.5 — 
Other(0.3)(0.5)
Income tax expense$4.4 $37.4 
Schedule of Net Deferred Taxes
The components of the Company’s net deferred taxes consisted of the following (in millions):
Balance as of
June 27, 2026June 28, 2025June 29, 2024
Gross deferred tax assets:
Tax credit carryforwards$143.2 $140.5 $138.2 
Net operating loss carryforwards240.2 337.9 381.0 
Capital loss carryforwards1.1 1.1 1.0 
Inventories63.1 48.9 37.2 
Accruals and reserves60.7 54.9 53.0 
Intangibles including acquisition related items 439.6 461.8 510.6 
Capitalized research costs411.3 355.6 312.3 
Other56.8 48.3 43.5 
Gross deferred tax assets1,416.0 1,449.0 1,476.8 
Valuation allowance(1,238.9)(1,266.3)(1,336.0)
Deferred tax assets177.1 182.7 140.8 
Gross deferred tax liabilities:
Acquisition related items(53.8)(54.1)(29.4)
Tax on unrepatriated earnings(5.0)(4.9)(9.5)
Foreign branch tax adjustments(30.2)(25.2)(14.6)
Other(20.5)(17.4)(16.5)
Deferred tax liabilities(109.5)(101.6)(70.0)
Total net deferred tax assets$67.6 $81.1 $70.8 
Summary of Activity Of Deferred Tax Valuation Allowance
The following table provides information about the activity of our deferred tax valuation allowance (in millions):
Deferred Tax Valuation AllowanceBalance at
Beginning
of Period
Additions Charged
to Expenses or
Other Accounts(1)
Deductions Credited to Expenses or Other Accounts(2)
Balance at
End of
Period
Year Ended June 27, 2026$1,266.3 $91.7 $(119.1)$1,238.9 
Year Ended June 28, 20251,336.0 78.3 (148.0)1,266.3 
Year Ended June 29, 20241,351.5 132.7 (148.2)1,336.0 
(1) Additions include current year additions charged to expenses and current year build due to increases in net deferred tax assets, return to provision true-ups, and other adjustments.
(2) Deductions include current year releases credited to expenses and current year reductions due to decreases in net deferred tax assets, return to provision true-ups, other adjustments and increases in deferred tax liabilities.
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of unrecognized tax benefits between July 1, 2023 and June 27, 2026 is as follows (in millions):
Balance at July 1, 2023$54.9 
Additions based on tax positions related to current year1.2 
Additions based on tax positions related to prior year0.5 
Reductions based on tax positions related to prior year(1.9)
Reductions for lapse of statute of limitations(0.2)
Balance at June 29, 202454.5 
Additions based on tax positions related to current year2.2 
Additions based on tax positions related to prior year0.1 
Reductions based on tax positions related to prior year(4.1)
Reductions for lapse of statute of limitations(6.5)
Balance at June 28, 202546.2 
Additions based on tax positions related to current year1.9 
Additions based on tax positions related to prior year— 
Reductions based on tax positions related to prior year(1.3)
Reductions for lapse of statute of limitations(1.9)
Balance at June 27, 2026$44.9 
Schedule of Tax Years That Remain Subject To Examination
The following table summarizes the Company’s major tax jurisdictions and the tax years that remain subject to examination by such jurisdictions as of June 27, 2026:
Tax JurisdictionsTax Years
United States(1)
2006 and onward
Canada2024 and onward
China2021 and onward
France2023 and onward
Germany2018 and onward
Korea2019 and onward
United Kingdom2024 and onward
(1) Although the Company is generally subject to a three-year statute of limitations in the U.S., tax authorities maintain the ability to adjust tax attribute carryforwards generated in earlier years.
Schedule of Cash Flow, Supplemental Disclosures
The following table presents income taxes paid, net of refunds received (in millions):
Year ended
June 27, 2026
Income taxes paid (net of refund)
Federal$— 
State0.3 
Foreign
Canada2.2 
China27.4 
United Kingdom(10.8)
Other countries4.7 
Total cash paid for income taxes, net of refunds$23.8