XML 45 R31.htm IDEA: XBRL DOCUMENT
v3.21.2

Income Taxes (Tables) | 12 Months Ended
--- | ---
May 30, 2021
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 30, 2021 |  | May 31, 2020 |  | May 26, 2019
Current: |  |  |  |  |
Federal | $ | (38) |  |  | $ | (7,836) |  |  | $ | (67) |
State | 74 |  |  | 38 |  |  | 63 |
Foreign | 56 |  |  | 56 |  |  | 83 |
Total | 92 |  |  | (7,742) |  |  | 79 |
Deferred: |  |  |  |  |
Federal | (7,433) |  |  | (5,212) |  |  | 1,581 |
State | (460) |  |  | (162) |  |  | (142) |
Total | (7,893) |  |  | (5,374) |  |  | 1,439 |
Income tax (benefit) expense | $ | (7,801) |  |  | $ | (13,116) |  |  | $ | 1,518 |
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 30, 2021 |  | May 31, 2020 |  | May 26, 2019
Tax at U.S. statutory rate (1) | $ | (8,498) |  |  | $ | (10,774) |  |  | $ | 764 |
State income taxes, net of federal benefit | (1,136) |  |  | (1,782) |  |  | 46 |
Tax reform/CARES Act | — |  |  | (2,770) |  |  | — |
Change in valuation allowance | 3,690 |  |  | 2,654 |  |  | 929 |
Tax credit carryforwards | (606) |  |  | (613) |  |  | (771) |
Other compensation-related activity | 249 |  |  | 334 |  |  | 618 |
Impairment of goodwill | — |  |  | 647 |  |  | — |
Foreign rate differential | (1,414) |  |  | (863) |  |  | — |
Other | (86) |  |  | 51 |  |  | (68) |
Income tax (benefit) expense | $ | (7,801) |  |  | $ | (13,116) |  |  | $ | 1,518 |
(1) Statutory rate was 21.0% for fiscal year 2021, 2020 and 2019.
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 30, 2021 |  | May 31, 2020
Deferred tax assets: |  |  |
Accruals and reserves | $ | 3,366 |  |  | $ | 4,651 |
Net operating loss carryforwards | 21,916 |  |  | 14,947 |
Stock-based compensation | 1,123 |  |  | 904 |
Research and AMT credit carryforwards | 5,150 |  |  | 4,491 |
Lease liability | 5,902 |  |  | 6,731 |
Limitations on business interest expense | 2,411 |  |  | 2,081 |
Other | 927 |  |  | 426 |
Gross deferred tax assets | 40,795 |  |  | 34,231 |
Valuation allowance | (10,460) |  |  | (6,770) |
Net deferred tax assets | 30,335 |  |  | 27,461 |
Deferred tax liabilities: |  |  |
Depreciation and amortization | (16,600) |  |  | (19,049) |
Goodwill and other indefinite life intangibles | (13,406) |  |  | (12,204) |
Basis difference in investment in non-public company | (1,382) |  |  | (3,439) |
Right of use asset | (5,087) |  |  | (6,357) |
Deferred tax liabilities | (36,475) |  |  | (41,049) |
Net deferred tax liabilities | $ | (6,140) |  |  | $ | (13,588) |
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 30, 2021 |  | May 31, 2020 |  | May 26, 2019
Unrecognized tax benefits – beginning of the period | $ | 827 |  |  | $ | 616 |  |  | $ | 479 |
Gross increases – tax positions in prior period | — |  |  | 101 |  |  | 29 |
Gross decreases – tax positions in prior period | — |  |  | (11) |  |  | — |
Gross increases – current-period tax positions | 115 |  |  | 121 |  |  | 133 |
Lapse of statute of limitations | — |  |  | — |  |  | (25) |
Unrecognized tax benefits – end of the period | $ | 942 |  |  | $ | 827 |  |  | $ | 616 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=124434304&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration