Income Taxes (Tables)

12 Months Ended

Jun. 28, 2026

Schedule of Effective Income Tax Rate and Amount Reconciliation

The following table presents the reconciliation of the statutory U.S. federal income tax rate to the effective tax rate, pursuant to the disclosure requirements of ASU 2023-09:


	Successor			Predecessor
	Period from September 30, 2025 to June 28, 2026			Period from June 30, 2025 to September 29, 2025
(in millions of U.S. Dollars, except for percentages)	Amount	Percent		Amount	Percent
U.S. Federal Statutory Tax Rate	($87.0)	21.0	%	$89.0	21.0	%

Nontaxable or Nondeductible items:
Transaction fees	—	—	%	14.6	3.5	%
Stock compensation	—	—	%	21.9	5.2	%
Effects of restructuring	—	—	%	60.0	14.1	%
Changes in valuation allowances	88.4	(21.3)	%	(186.2)	(44.0)	%
Other	(1.2)	0.3	%	3.8	0.9	%
State and Local Income Taxes, Net of Federal Income Tax Effect(1)	0.1	—	%	—	—	%
Foreign Tax Effects	1.1	(0.3)	%	0.4	0.1	%
Income tax expense and effective tax rate	$1.4	(0.3)	%	$3.5	0.8	%
(1): The states that contributed greater than 50% of the tax effect in this category include California and Massachusetts.

The following table presents the reconciliation of the statutory U.S. federal income tax rate to the effective tax rate for the years ended June 29, 2025 and June 30, 2024, prior to the adoption of ASU 2023-09:


	Predecessor
		Fiscal Year Ended June 29, 2025			Fiscal Year Ended June 30, 2024
(in millions of U.S. Dollars)		Amount	Percent		Amount	Percent
Federal income tax provision at statutory rate		($340.0)	21	%	($120.2)	21	%
(Decrease) increase in income tax expense resulting from:
State tax provision, net of federal benefit		(13.8)	1	%	(5.0)	1	%

Tax exempt interest		(0.1)	—	%	(0.4)	—	%

(Decrease) increase in tax reserve		(0.4)	—	%	(2.0)	—	%

Research and development credits		(7.3)	1	%	(9.7)	2	%

Increase (decrease) in valuation allowance		309.1	(19)	%	127.0	(22)	%

Stock-based compensation		14.2	(1)	%	8.8	(2)	%
Statutory rate differences		0.1	—	%	—	—	%
Foreign earnings taxed in U.S.		3.5	—	%	0.4	—	%
Goodwill Impairment		23.1	(1)	%	—	—	%


Provision to return adjustments		0.9	—	%	(0.4)	—	%

Impact of rate changes		(3.4)	—	%	0.4	—	%
Expiration of attributes		0.1	—	%	2.0	—	%
Pre-petition charges		4.1	—	%	—	—	%
Other		0.2	—	%	0.2	—	%
Income tax (benefit) expense and effective tax rate		($9.7)	1	%	$1.1	—	%

Schedule of Components of Income Before Income Taxes

The following were the components of (loss) income before income taxes:


	Successor	Predecessor
(in millions of U.S. Dollars)	Period from September 30, 2025 to June 28, 2026	Period from June 30, 2025 to September 29, 2025	Fiscal Year Ended June 29, 2025	Fiscal Year Ended June 30, 2024
Domestic	($419.7)	$431.4	($1,619.2)	($572.2)
Foreign	5.3	(7.7)	0.3	(0.3)
(Loss) income before income taxes	($414.4)	$423.7	($1,618.9)	($572.5)

Schedule of Components of Income Tax (Benefit) Expense

The following were the components of income tax (benefit) expense:


	Successor	Predecessor
(in millions of U.S. Dollars)	Period from September 30, 2025 to June 28, 2026	Period from June 30, 2025 to September 29, 2025	Fiscal Year Ended June 29, 2025	Fiscal Year Ended June 30, 2024
Current:
Federal	$—	$0.1	$—	$—
Foreign	0.8	0.1	0.6	0.9
State	—	—	—	0.2
Total current	0.8	0.2	0.6	1.1
Deferred:
Federal	0.9	3.2	(10.5)	—
Foreign	(0.4)	—	0.5	—
State	0.1	0.1	(0.3)	—
Total deferred(1)	0.6	3.3	(10.3)	—
Income tax expense (benefit)	$1.4	$3.5	($9.7)	$1.1
(1): For the period ended September 29, 2025, expenses included $2.3 million impact from fresh start accounting and implementation of the Plan. See Note 4, "Fresh Start Accounting," for further information.

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 were as follows:


	Successor	Predecessor
(in millions of U.S. Dollars)	June 28, 2026	June 29, 2025
Deferred tax assets:
Compensation	$5.9	$8.3
Inventories	41.0	45.3
Sales return reserve and allowance for bad debts	11.3	8.1

Federal and state net operating loss carryforwards	133.0	691.0
Federal income tax credits	79.2	77.0
State income tax credits	0.7	0.7
48C investment tax credits	35.7	35.7
Property and Equipment	534.4	—
Investments	0.3	0.6
Stock-based compensation	5.9	9.0
Deferred revenue	16.5	25.0
Lease liabilities	24.0	35.1
Capitalized research and development	63.5	120.1
Convertible notes	—	58.5
Nondeductible interest carryforward	115.9	95.3
Other	7.4	14.1
Total gross deferred assets	1,074.7	1,223.8
Less valuation allowance	(930.6)	(1,041.4)
Deferred tax assets, net	144.1	182.4

Deferred tax liabilities:
Property and equipment	—	(122.4)
Intangible assets	(85.2)	(5.0)
Other long-term investments	—	(9.0)
Prepaid taxes	(0.5)	(0.5)
Foreign earnings recapture	(4.2)	(4.2)
Taxes on unremitted foreign earnings	(1.0)	(7.0)
Lease assets	(21.8)	(29.1)
Convertible notes and debt	(32.2)	—
Other	—	(4.6)

Total gross deferred liability	(144.9)	(181.8)
Deferred tax liability, net	($0.8)	$0.6

Schedule of 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 consolidated balance sheets as follows:


	Successor
	Balance at June 28, 2026
(in millions of U.S. Dollars)	Assets	Liabilities
U.S. federal income taxes	$—	($1.9)
Foreign income taxes	1.1	—
Total	$1.1	($1.9)


	Predecessor
	Balance at June 29, 2025
(in millions of U.S. Dollars)	Assets	Liabilities
U.S. federal income taxes	$—	($0.5)
Foreign income taxes	1.1	—
Total	$1.1	($0.5)

Schedule of Unrecognized Tax Benefits Roll Forward

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


	Successor	Predecessor
(in millions of U.S. Dollars)	Period from September 30, 2025 to June 28, 2026	Period from June 30, 2025 to September 29, 2025	Fiscal Year Ended June 29, 2025	Fiscal Year Ended June 30, 2024
Balance at beginning of period	$8.3	$8.3	$9.4	$9.8
Increases related to prior year tax positions	0.1	—	—	—
Decreases related to prior year tax positions	—	—	(1.1)	(0.1)

Expiration of statute of limitations for assessment of taxes	(0.3)	—	(0.4)	(2.0)
Increases related to current year positions	—	—	0.4	1.7
Balance at end of period	$8.1	$8.3	$8.3	$9.4