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Income Taxes | 12 Months Ended
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Jun. 29, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | NOTE 9 — 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 29, 2023 |  |  | June 30, 2022 |  |  | June 24, 2021 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 18,393 |  |  | $ | 14,347 |  |  | $ | 15,228 |
State |  |  | 5,215 |  |  |  | 5,011 |  |  |  | 4,010 |
Total current expense |  |  | 23,608 |  |  |  | 19,358 |  |  |  | 19,238 |
Deferred: |  |  |  |  |  |  |  |  |
Deferred federal |  |  | (1,164 | ) |  |  | 1,519 |  |  |  | 891 |
Deferred state |  |  | 49 |  |  |  | (968 | ) |  |  | (51 | )
Total deferred (benefit) expense |  |  | (1,115 | ) |  |  | 551 |  |  |  | 840 |
Total income tax expense |  | $ | 22,493 |  |  | $ | 19,909 |  |  | $ | 20,078 |
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 29, 2023 |  |  | June 30, 2022 |  |  | June 24, 2021 |
Federal statutory income tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State income taxes, net of federal benefit |  |  | 4.9 |  |  |  | 3.7 |  |  |  | 3.9 |
Section 162(m) limitation |  |  | 0.7 |  |  |  | 0.6 |  |  |  | 1.1 |
Research and development tax credit |  |  | (0.3 | ) |  |  | (0.4 | ) |  |  | (0.5 | )
Share-based compensation shortfall expense (windfall benefit) |  |  | 0.1 |  |  |  | (0.7 | ) |  |  | (0.4 | )
Uncertain tax positions |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.1 |
Other |  |  | (0.1 | ) |  |  | 0.1 |  |  |  | — |
Effective tax rate |  |  | 26.4 | % |  |  | 24.4 | % |  |  | 25.2 | %
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 29, 2023 |  |  | June 30, 2022 |
Deferred tax assets (liabilities): |  |  |  |  |  |
Accounts receivable |  | $ | 346 |  |  | $ | 368 |
Employee compensation |  |  | 1,866 |  |  |  | 1,499 |
Inventory |  |  | 371 |  |  |  | 295 |
Depreciation |  |  | (14,303 | ) |  |  | (13,732 | )
Capitalized leases |  |  | 1,140 |  |  |  | 1,196 |
Goodwill and intangible assets |  |  | 1,474 |  |  |  | 2,046 |
Retirement plan |  |  | 7,004 |  |  |  | 7,673 |
Workers’ compensation |  |  | 1,950 |  |  |  | 2,048 |
Share based compensation |  |  | 1,642 |  |  |  | 1,472 |
Research related expenditures |  |  | 1,549 |  |  |  | — |
Other |  |  | 553 |  |  |  | 371 |
Net deferred tax asset |  | $ | 3,592 |  |  | $ | 3,236 |
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 29, 2023 and June 30, 2022, unrecognized tax benefits and accrued interest and penalties were $448 and $381. 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 $463 and $390 at June 29, 2023 and June 30, 2022, respectively. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:
|  | June 29, 2023 |  |  | June 30, 2022 |  |  | June 24, 2021 |
Beginning balance |  | $ | 390 |  |  | $ | 326 |  |  | $ | 203 |
Gross increases — tax positions in prior year |  |  | 32 |  |  |  | 1 |  |  |  | 49 |
Gross decreases — tax positions in prior year |  |  | — |  |  |  | — |  |  |  | — |
Settlements |  |  | (36 | ) |  |  | — |  |  |  | — |
Gross increases — tax positions in current year |  |  | 127 |  |  |  | 110 |  |  |  | 110 |
Lapse of statute of limitations |  |  | (50 | ) |  |  | (47 | ) |  |  | (36 | )
Ending balance |  | $ | 463 |  |  | $ | 390 |  |  | $ | 326 |
Unrecognized tax benefits, that if recognized, would affect the annual effective tax rate on income from continuing operations, are as follows:
|  | June 29, 2023 |  |  | June 30, 2022 |  |  | June 24, 2021 |
Unrecognized tax benefits that would affect annual effective tax rate |  | $ | 439 |  |  | $ | 373 |  |  | $ | 311 |
During fiscal 2023, 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 2020 through 2022. Our Illinois tax returns are under audit for fiscal 2021. Our Illinois tax return for fiscal 2022 is open for audit. Our California tax returns for fiscal 2019 through 2022 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/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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