XML 32 R17.htm IDEA: XBRL DOCUMENT v3.21.2
Income Taxes
 12 Months Ended
Jun. 24, 2021
Income Tax Disclosure [Abstract]  
Income Taxes
NOTE 8 — 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 24, 

2021
       
June 25,

2020
       
June 27,

2019
  
Current:
                              
Federal
  
$
15,228
 
     
$
14,588
 
     
$
10,309
 
State
  
 
4,010
 
     
 
3,909
 
     
 
2,951
 
   
 
 
       
 
 
       
 
 
  
Total current expense
  
 
19,238
 
     
 
18,497
 
     
 
13,260
 
Deferred:
                              
Deferred federal
  
 
891
 
     
 
137
 
     
 
395
 
Deferred state
  
 
(51
) 
     
 
(33
) 
     
 
(693
) 
   
 
 
       
 
 
       
 
 
  
Total deferred expense (benefit)
  
 
840
 
     
 
104
 
     
 
(298
) 
   
 
 
       
 
 
       
 
 
  
Total income tax expense
  
$
20,078
 
     
$
18,601
 
     
$
12,962
 
   
 
 
       
 
 
       
 
 
  
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 24,    

2021
    
June 25,

2020
    
June 27,

2019
  
Federal statutory income tax rate
   
 
21.0
% 
  
 
21.0
% 
  
 
21.0
% 
State income taxes, net of federal benefit
   
 
3.9
 
  
 
4.2
 
  
 
3.1
 
Section 162(m) limitation
   
 
1.1
 
  
 
1.2
 
  
 
1.1
 
Research and development tax credit
   
 
(0.5
) 
  
 
(0.3
) 
  
 
(0.3
) 
Windfall tax benefits
   
 
(0.4
) 
  
 
(0.4
) 
  
 
(0.2
) 
Uncertain tax positions
   
 
0.1
 
  
 
—  
 
  
 
0.1
 
Other
   
 
—  
 
  
 
(0.1
) 
  
 
(0.1
) 
    
 
 
    
 
 
    
 
 
  
Effective tax rate
   
 
25.2
% 
  
 
25.6
% 
  
 
24.7
% 
    
 
 
    
 
 
    
 
 
  
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 24,

2021
     
June 25,

2020
  
Deferred tax assets (liabilities):
                  
Accounts receivable
    $ 349      $ 355  
Employee compensation
      1,338        1,534  
Inventory
      198        189  
Depreciation and amortization
      (12,456 )       (11,260 ) 
Capitalized leases
      1,159        1,145  
Goodwill and intangible assets
      2,500        2,885  
Retirement plan
      9,242        8,373  
Workers’ compensation
      1,991        1,932  
Share based compensation
      1,397        1,344  
Other
      369        291  
    
 
 
     
 
 
  
Net deferred tax asset
      6,087        6,788  
    
 
 
     
 
 
  
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. 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 24, 2021 and June 25, 2020, unrecognized tax benefits and accrued interest and penalties were $321 and $204. 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 $326 and $203 at June 24, 2021 and June 25, 2020, respectively.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
 
    
June 24,

2021
     
June 25,

2020
     
June 27,

2019
  
Beginning balance
    $ 203      $ 240      $ 207  
Gross increases — tax positions in prior year
      49        16        —    
Gross decreases — tax positions in prior year
      —          (24 )       (6 ) 
Settlements
      —          —          —    
Gross increases — tax positions in current year
      110        60        39  
Lapse of statute of limitations
      (36 )       (89 )       —    
    
 
 
     
 
 
     
 
 
  
Ending balance
    $ 326      $ 203      $ 240  
    
 
 
     
 
 
     
 
 
  
Unrecognized tax benefits, that if recognized, would affect the annual effective tax rate on income from continuing operations, are as follows:
 
    
June 24,

2021
     
June 25,

2020
     
June 27,

2019
  
Unrecognized tax benefits that would affect annual effective tax rate
    $ 311      $ 196      $ 217  
During fiscal 2021, 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.
 
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 2018 through 2020. Our California tax returns for fiscal 2017 through 2020 are open for audit. No other tax jurisdictions are material to us.