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Income Taxes | 12 Months Ended
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Jun. 27, 2019
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 7 — 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 27, 2019 |  |  | June 28, 2018 |  |  | June 29, 2017 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 10,309 |  |  | $ | 10,722 |  |  | $ | 17,013 |
State |  |  | 2,951 |  |  |  | 2,464 |  |  |  | 2,744 |
Total current expense |  |  | 13,260 |  |  |  | 13,186 |  |  |  | 19,757 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Deferred federal |  |  | 395 |  |  |  | 3,902 |  |  |  | (1,698 | )
Deferred state |  |  | (693 | ) |  |  | (238 | ) |  |  | (46 | )
Total deferred (benefit) expense |  |  | (298 | ) |  |  | 3,664 |  |  |  | (1,744 | )
Total income tax expense |  | $ | 12,962 |  |  | $ | 16,850 |  |  | $ | 18,013 |
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 27, 2019 |  |  | June 28, 2018 |  |  | June 29, 2017 |
Federal statutory income tax rate |  |  | 21.0 | % |  |  | 28.1 | % |  |  | 35.0 | %
State income taxes, net of federal benefit |  |  | 3.1 |  |  |  | 3.1 |  |  |  | 3.3 |
Impact of Tax Reform |  |  | — |  |  |  | 6.3 |  |  |  | — |
Section 162(m) Limitation |  |  | 1.1 |  |  |  | — |  |  |  | — |
Research and development tax credit |  |  | (0.3 | ) |  |  | (0.2 | ) |  |  | (0.1 | )
Domestic manufacturing deduction |  |  | — |  |  |  | (2.2 | ) |  |  | (3.1 | )
Windfall tax benefits |  |  | (0.2 | ) |  |  | (1.0 | ) |  |  | (1.8 | )
Uncertain tax positions |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.1 |
Other |  |  | (0.1 | ) |  |  | (0.1 | ) |  |  | (0.1 | )
Effective tax rate |  |  | 24.7 | % |  |  | 34.1 | % |  |  | 33.3 | %
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. Deferred tax assets and liabilities are comprised of the following:
|  | June 27, 2019 |  |  | June 28, 2018 |
Deferred tax assets (liabilities): |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 332 |  |  | $ | 305 |
Employee compensation |  |  | 1,673 |  |  |  | 810 |
Inventory |  |  | 309 |  |  |  | 273 |
Depreciation and amortization |  |  | (10,847 | ) |  |  | (9,504 | )
Capitalized leases |  |  | 1,117 |  |  |  | 1,020 |
Goodwill and intangible assets |  |  | 3,182 |  |  |  | 3,160 |
Retirement plan |  |  | 6,599 |  |  |  | 5,484 |
Workers’ compensation |  |  | 1,862 |  |  |  | 1,692 |
Share based compensation |  |  | 1,305 |  |  |  | 1,281 |
Capital loss carryforward |  |  | — |  |  |  | 112 |
Other |  |  | 191 |  |  |  | 503 |
Less valuation allowance |  |  | — |  |  |  | (112 | )
Net deferred tax asset — long term |  |  | 5,723 |  |  |  | 5,024 |
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 2019 and fiscal 2018 the net change in the total valuation allowance was not material. 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 27, 2019 and June 28, 2018, unrecognized tax benefits and accrued interest and penalties were $ 259 and $ 214 . Accrued interest and penalties related to uncertain tax positions are not material for any periods presented. Interest and penalties within income tax expense were not material for any period presented. The total gross amounts of unrecognized tax benefits were $ 240 and $ 207 at June 27, 2019 and June 28, 2018, respectively. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
|  | June 27, 2019 |  |  | June 28, 2018 |  |  | June 29, 2017 |
Beginning balance |  | $ | 207 |  |  | $ | 174 |  |  | $ | 24 |
Gross increases — tax positions in prior year |  |  | — |  |  |  | 6 |  |  |  | 7 |
Gross decreases — tax positions in prior year |  |  | (6 | ) |  |  | — |  |  |  | — |
Settlements |  |  | — |  |  |  | — |  |  |  | — |
Gross increases — tax positions in current year |  |  | 39 |  |  |  | 27 |  |  |  | 23 |
Lapse of statute of limitations |  |  | — |  |  |  | — |  |  |  | 120 |
Ending balance |  | $ | 240 |  |  | $ | 207 |  |  | $ | 174 |
Unrecognized tax benefits, that if recognized, would affect the annual effective tax rate on income from continuing operations, are as follows:
|  | June 27, 2019 |  |  | June 28, 2018 |  |  | June 29, 2017 |
Unrecognized tax benefits that would affect annual effective tax rate |  | $ | 217 |  |  | $ | 177 |  |  | $ | 136 |
During fiscal 2019, the change in unrecognized tax benefits due to statute expiration was not material. 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, for which the impact 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 2016 through 2018. Our California tax returns for fiscal 2015 through 2018 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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