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Income Taxes (Tables) | 12 Months Ended
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May 29, 2022
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
| As restated |  |  |  |
| May 29, 2022 |  | May 30, 2021 |  | May 31, 2020
Current: |  |  |  |  |
Federal | $ | — |  |  | $ | (38) |  |  | $ | (7,723) |
State | 23 |  |  | 74 |  |  | 38 |
Foreign | 356 |  |  | 56 |  |  | 56 |
Total | 379 |  |  | 92 |  |  | (7,629) |
Deferred: |  |  |  |  |
Federal | (5,670) |  |  | (1,536) |  |  | (983) |
State | (654) |  |  | (459) |  |  | (162) |
Total | (6,324) |  |  | (1,995) |  |  | (1,145) |
Income tax benefit | $ | (5,945) |  |  | $ | (1,903) |  |  | $ | (8,774) |
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
| As restated |  |  |  |
| May 29, 2022 |  | May 30, 2021 |  | May 31, 2020
Tax at U.S. statutory rate (1) | $ | (14,548) |  |  | $ | (2,409) |  |  | $ | (6,435) |
State income taxes, net of federal benefit | (2,195) |  |  | (304) |  |  | (1,048) |
Tax reform/CARES Act | — |  |  | — |  |  | (2,770) |
Change in valuation allowance | 10,134 |  |  | 2,667 |  |  | 2,014 |
Tax credit carryforwards | (436) |  |  | (606) |  |  | (613) |
Other compensation-related activity | 234 |  |  | 249 |  |  | 334 |
Impairment of goodwill | 2,347 |  |  | — |  |  | 647 |
Foreign rate differential | (496) |  |  | (1,414) |  |  | (986) |
Other | (985) |  |  | (86) |  |  | 83 |
Income tax benefit | $ | (5,945) |  |  | $ | (1,903) |  |  | $ | (8,774) |
(1) Statutory rate was 21.0% for fiscal year 2022, 2021 and 2020.
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
| As restated |  |
| May 29, 2022 |  | May 30, 2021
Deferred tax assets: |  |  |
Accruals and reserves | $ | 867 |  |  | $ | 3,366 |
Net operating loss carryforwards | 28,558 |  |  | 21,916 |
Stock-based compensation | 880 |  |  | 1,123 |
Research and AMT credit carryforwards | 5,611 |  |  | 5,150 |
Lease liability | 2,874 |  |  | 5,902 |
Limitations on business interest expense | 4,245 |  |  | 2,411 |
Goodwill and other indefinite life intangibles | 2,745 |  |  | — |
Other | 750 |  |  | 927 |
Gross deferred tax assets | 46,530 |  |  | 40,795 |
Valuation allowance | (35,942) |  |  | (10,460) |
Net deferred tax assets | 10,588 |  |  | 30,335 |
Deferred tax liabilities: |  |  |
Depreciation and amortization | (8,614) |  |  | (16,600) |
Goodwill and other indefinite life intangibles | — |  |  | (13,406) |
Basis difference in investment in non-public company | — |  |  | (1,382) |
Right of use asset | (2,100) |  |  | (5,087) |
Deferred tax liabilities | (10,714) |  |  | (36,475) |
Net deferred tax liabilities | $ | (126) |  |  | $ | (6,140) |
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 29, 2022 |  | May 30, 2021 |  | May 31, 2020
Unrecognized tax benefits – beginning of the period | $ | 942 |  |  | $ | 827 |  |  | $ | 616 |
Gross increases – tax positions in prior period | — |  |  | — |  |  | 101 |
Gross decreases – tax positions in prior period | — |  |  | — |  |  | (11) |
Gross increases – current-period tax positions | 83 |  |  | 115 |  |  | 121 |
Unrecognized tax benefits – end of the period | $ | 1,025 |  |  | $ | 942 |  |  | $ | 827 |

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