XML 31 R17.htm IDEA: XBRL DOCUMENT v3.22.2.2
Income Taxes
 12 Months Ended
Jun. 30, 2022
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 30,
2022
 
  
June 24,
2021
 
  
June 25,
2020
 
Current:
                           
Federal
    $ 14,347      $ 15,228      $ 14,588  
State
      5,011        4,010        3,909  
    
 
 
     
 
 
     
 
 
  
Total current expense
      19,358        19,238        18,497  
Deferred:
                           
Deferred federal
      1,519        891        137  
Deferred state
      (968 )       (51 )       (33 ) 
    
 
 
     
 
 
     
 
 
  
Total deferred expense
      551        840        104  
    
 
 
     
 
 
     
 
 
  
Total income tax expense
    $ 19,909      $ 20,078      $ 18,601  
    
 
 
     
 
 
     
 
 
  
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,
2022
 
 
June 24,
2021
 
 
June 25,
2020
 
Federal statutory income tax rate
      21.0 %      21.0 %      21.0 % 
State income taxes, net of federal benefit
      3.7       3.9       4.2  
Section 162(m) limitation
      0.6       1.1       1.2  
Research and development tax credit
      (0.4 )      (0.5 )      (0.3 ) 
Windfall tax benefits
      (0.7 )      (0.4 )      (0.4 ) 
Uncertain tax positions
      0.1       0.1       —  
Other
      0.1       —       (0.1 ) 
    
 
 
    
 
 
    
 
 
  
Effective tax rate
      24.4 %      25.2 %      25.6 % 
    
 
 
    
 
 
    
 
 
  
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 30,
2022
 
  
June 24,
2021
 
Deferred tax assets (liabilities):
                  
Accounts receivable
    $ 368      $ 349  
Employee compensation
      1,499        1,338  
Inventory
      295        198  
Depreciation and amortization
      (13,732 )       (12,456 ) 
Capitalized leases
      1,196        1,159  
Goodwill and intangible assets
      2,046        2,500  
Retirement plan
      7,673        9,242  
Workers’ compensation
      2,048        1,991  
Share based compensation
      1,472        1,397  
Other
      371        369  
    
 
 
     
 
 
  
Net deferred tax asset
    $ 3,236      $ 6,087  
    
 
 
     
 
 
  
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 30, 2022 and June 24, 2021, unrecognized tax benefits and accrued interest and penalties were $381 and $321. 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 $390 and $326 at June 30, 2022 and June 24, 2021, respectively.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
 

 
  
June 30,
2022
 
  
June 24,
2021
 
  
June 25,
2020
 
Beginning balance
    $ 326      $ 203      $ 240  
Gross increases — tax positions in prior year
      1        49        16  
Gross decreases — tax positions in prior year
      —        —        (24 ) 
Settlements
      —        —        —  
Gross increases — tax positions in current year
      110        110        60  
Lapse of statute of limitations
      (47 )       (36 )       (89 ) 
    
 
 
     
 
 
     
 
 
  
Ending balance
    $ 390      $ 326      $ 203  
    
 
 
     
 
 
     
 
 
  
Unrecognized tax benefits, that if recognized, would affect the annual effective tax rate on income from continuing operations, are as follows:
 

 
  
June 30,
2022
 
  
June 24,
2021
 
  
June 25,
2020
 
Unrecognized tax benefits that would affect annual effective tax rate
    $ 373      $ 311      $ 196  
During fiscal 2022, 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 tax returns are open for audit for fiscal 2019 through 2021.
Our Illinois tax returns are under audit for fiscal 2019 and 2020. Our Illinois tax return for fiscal 2021 is open for audit. Our California tax
returns for fiscal 2018 through 2021 are open for audit. No other tax jurisdictions are material to us.