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Income Taxes (Tables)

12 Months Ended

May 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Benefits and Provisions for Income Taxes

The (benefit) provision for income taxes from continuing operations consisted of the following:

(in thousands)			Year Ended
			May 31, 2020						May 26, 2019						May 27, 2018
Current:
Federal			$	(7,836)					$	(67)					$	(2,854)
State			38						63						60
Foreign			56						83						83
Total			(7,742)						79						(2,711)
Deferred:
Federal			(5,212)						1,581						(7,122)
State			(162)						(142)						470
Total			(5,374)						1,439						(6,652)
Income tax expense (benefit)			$	(13,116)					$	1,518					$	(9,363)

Schedule of Actual Provisions for Income Taxes

The actual (benefit) provision for income taxes from continuing operations differs from the statutory U.S. federal income tax rate as follows:

(in thousands)			Year Ended
			May 31, 2020						May 26, 2019						May 27, 2018
Tax at U.S. statutory rate (1)			$	(10,774)					$	764					$	4,784
State income taxes, net of federal benefit			(1,782)						46						439
Tax reform/CARES Act			(2,770)						—						(14,350)
Change in valuation allowance			2,654						929						(176)
Tax credit carryforwards			(613)						(771)						(777)
Other compensation-related activity			334						618						566
Impairment of goodwill			647						—						—
Foreign rate differential			(863)						—						—
Other			51						(68)						151
Income tax expense (benefit)			$	(13,116)					$	1,518					$	(9,363)

(1) Statutory rate was 21.0% for fiscal year 2020 and 2019, 29.4% for fiscal year 2018.

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities reported in the accompanying Consolidated Balance Sheets consisted of the following:

(in thousands)			Year Ended
			May 31, 2020						May 26, 2019
Deferred tax assets:
Accruals and reserves			$	4,651					$	3,130
Net operating loss carryforwards			$	14,947					$	9,385
Stock-based compensation			$	904					$	979
Research and AMT credit carryforwards			$	4,491					$	2,839
Lease liability			$	6,731					$	—
Limitations on business interest expense			$	2,081					$	—
Other			$	426					$	461
Gross deferred tax assets			$	34,231					$	16,794
Valuation allowance			$	(6,770)					$	(4,116)
Net deferred tax assets			$	27,461					$	12,678
Deferred tax liabilities:
Depreciation and amortization			(19,049)						(14,324)
Goodwill and other indefinite life intangibles			(12,204)						(13,351)
Basis difference in investment in non-public company			(3,439)						(4,396)
Right of use asset			(6,357)						—
Deferred tax liabilities			(41,049)						(32,071)
Net deferred tax liabilities			(13,588)						(19,393)

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in thousands)			Year Ended
			May 31, 2020						May 26, 2019						May 27, 2018
Unrecognized tax benefits – beginning of the period			$	616					$	479					$	537
Gross increases – tax positions in prior period			102						29						21
Gross decreases – tax positions in prior period			(11)						—						—
Gross increases – current-period tax positions			121						133						116
Settlements			—						—						(95)
Lapse of statute of limitations			—						(25)						(100)
Unrecognized tax benefits – end of the period			$	827					$	616					$	479

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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