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Income Taxes | 12 Months Ended
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Jun. 30, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 6 — INCOME TAXES The provision for income taxes is based entirely on income before income taxes earned in the United States, and is as follows for the last three fiscal years:
|  | For the Year Ended: |
|  | June 30, 2016 |  |  | June 25, 2015 |  |  | June 26, 2014 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 14,015 |  |  | $ | 15,916 |  |  | $ | 11,274 |
State |  |  | 2,222 |  |  |  | 2,027 |  |  |  | 1,704 |
Total current |  |  | 16,237 |  |  |  | 17,943 |  |  |  | 12,978 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Deferred federal |  |  | (210 | ) |  |  | (2,589 | ) |  |  | 375 |
Deferred state |  |  | 40 |  |  |  | 205 |  |  |  | 192 |
Total deferred |  |  | (170 | ) |  |  | (2,384 | ) |  |  | 567 |
Total income tax expense |  | $ | 16,067 |  |  | $ | 15,559 |  |  | $ | 13,545 |
The reconciliations of income taxes at the statutory federal income tax rate to income tax expense reported in the Consolidated Statements of Comprehensive Income for the last three fiscal years are as follows:
|  | June 30, 2016 |  |  | June 25, 2015 |  |  | June 26, 2014 |
Federal statutory income tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State income taxes, net of federal benefit |  |  | 3.2 |  |  |  | 3.4 |  |  |  | 3.3 |
Research and development tax credit |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | (0.1 | )
Domestic manufacturing deduction |  |  | (3.2 | ) |  |  | (3.4 | ) |  |  | (2.7 | )
Change in valuation allowance |  |  | — |  |  |  | — |  |  |  | (1.4 | )
Uncertain tax positions |  |  | (0.6 | ) |  |  | 0.3 |  |  |  | 0.3 |
Other |  |  | 0.3 |  |  |  | (0.5 | ) |  |  | (0.4 | )
Effective tax rate |  |  | 34.6 | % |  |  | 34.7 | % |  |  | 34.0 | %
During fiscal 2014 we divested our investment in an unconsolidated variable interest entity and cancelled a secured promissory note due from this entity. The tax benefit of these losses was $640 and the reduction in valuation allowance reduced the fiscal 2014 effective tax rate. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial statement basis and the tax basis of assets and liabilities using enacted statutory tax rates applicable to future years. Since the adoption of ASU 2015-17 described in “Note 1 — Significant Accounting Policies”, all deferred tax assets and liabilities are classified as non-current on the balance sheet for the fiscal year ended June 30, 2016. Prior periods were not retrospectively adjusted. Deferred tax assets and liabilities are comprised of the following:
|  | June 30, 2016 |  |  | June 25, 2015 |
Current tax assets: |  |  |  |  |  |  |  |
Accounts receivable |  | $ | — |  |  | $ | 404 |
Employee compensation |  |  | — |  |  |  | 2,072 |
Inventory |  |  | — |  |  |  | 424 |
Workers’ compensation |  |  | — |  |  |  | 699 |
Other |  |  | — |  |  |  | 703 |
Less valuation allowance |  |  | — |  |  |  | (38 | )
Net deferred tax asset — current |  | $ | — |  |  | $ | 4,264 |
Non-current tax assets (liabilities): |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 521 |  |  | $ | — |
Employee compensation |  |  | 1,922 |  |  |  | — |
Inventory |  |  | 353 |  |  |  | — |
Depreciation and amortization |  |  | (13,315 | ) |  |  | (12,435 | )
Capitalized leases |  |  | 1,440 |  |  |  | 1,354 |
Goodwill and intangible assets |  |  | 5,046 |  |  |  | 5,156 |
Retirement plan |  |  | 8,661 |  |  |  | 6,975 |
Workers’ compensation |  |  | 2,251 |  |  |  | 1,399 |
Share based compensation |  |  | 1,669 |  |  |  | 664 |
Capital loss carryforward |  |  | 171 |  |  |  | 175 |
Other |  |  | 42 |  |  |  | 30 |
Less valuation allowance |  |  | (171 | ) |  |  | (137 | )
Net deferred tax asset — long term |  |  | 8,590 |  |  |  | 3,181 |
Net deferred tax assets — total |  | $ | 8,590 |  |  | $ | 7,445 |
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income of the character necessary during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income, and tax-planning strategies in making this assessment. During fiscal 2016 the net change in the total valuation allowance was a $4 decrease and in fiscal 2015 there was no change to the total valuation allowance. If or when recognized, the tax benefits relating to any reversal of the valuation allowance will be recognized as a reduction of income tax expense. For the years ending June 30, 2016 and June 25, 2015, unrecognized tax benefits and accrued interest and penalties were $62 and $333. Accrued interest and penalties related to uncertain tax positions are not material for any periods presented. Interest and penalties were not material for any period presented. The total gross amounts of unrecognized tax benefits were $24 and $248 at June 30, 2016 and June 25, 2015, respectively. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
|  | June 30, 2016 |  |  | June 25, 2015 |  |  | June 26, 2014 |
Beginning balance |  | $ | 248 |  |  | $ | 247 |  |  | $ | 139 |
Gross increases — tax positions in prior year |  |  | 70 |  |  |  | 27 |  |  |  | 248 |
Gross decreases — tax positions in prior year |  |  | (8 | ) |  |  | (91 | ) |  |  | (107 | )
Settlements |  |  | (137 | ) |  |  | (18 | ) |  |  | — |
Gross increases — tax positions in current year |  |  | 17 |  |  |  | 21 |  |  |  | 7 |
Lapse of statute of limitations |  |  | (166 | ) |  |  | 62 |  |  |  | (40 | )
Ending balance |  | $ | 24 |  |  | $ | 248 |  |  | $ | 247 |
Unrecognized tax benefits, that if recognized, would affect the annual effective tax rate on income from continuing operations, are as follows:
|  | June 30, 2016 |  |  | June 25, 2015 |  |  | June 26, 2014 |
Unrecognized tax benefits that would affect annual effective tax rate |  | $ | 27 |  |  | $ | 261 |  |  | $ | 233 |
During fiscal 2016, we reversed $292 of unrecognized tax benefits due to statute expiration and effective settlement. We do not anticipate that total unrecognized tax benefits will significantly change in the next twelve months. There were certain changes in state tax laws during the period the impact of which was insignificant. We file income tax returns with federal and state tax authorities within the United States of America. Our federal and Illinois tax returns are open for audit for fiscal 2015. Our California tax returns for fiscal 2013 and 2014 are under audit and fiscal 2012 and 2015 are open for audit. No other tax jurisdictions are material to us.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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