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INCOME TAXES (Tables)
 12 Months Ended
May 28, 2016
Income Tax Disclosure [Abstract]  
Schedule of income before income tax, domestic and foreign

Loss from continuing operations before income taxes includes the following components (in thousands): 

 

    Fiscal Year Ended
    May 28,
 2016		   May 30,
 2015		   May 31,
 2014
United States   $ (7,274 )   $ (9,287 )   $ (1,399 )
Foreign     1,054       2,293       747  
Loss before income taxes   $ (6,220 )   $ (6,994 )   $ (652 )

 
Schedule of components of income tax expense (benefit)

The provision (benefit) for income taxes for fiscal 2016, 2015, and 2014 consists of the following (in thousands): 

 

   Fiscal Year Ended
   May 28,
 2016		  May 30,
 2015		  May 31,
 2014
Current:         
Federal  $0   $(326)  $214 
State   17    14    1 
Foreign   441    191    601 
Total current  $458   $(121)  $816 
Deferred:               
Federal  $0   $(1,964)  $(585)
State   0    530    (169)
Foreign   88    89    (369)
Total deferred  $88   $(1,345)  $(1,123)
Income tax provision (benefit)  $546   $(1,466)  $(307)

  
Schedule of effective income tax rate reconciliation

The differences between income taxes at the U.S. federal statutory income tax rate of 34% and the reported income tax provision (benefit) for fiscal 2016, 2015, and 2014 are summarized as follows:

 

   Fiscal Year Ended
   May 28,
 2016		  May 30,
2015		  May 31,
 2014
Federal statutory rate   34%   34%   34%
Effect of:               
State income taxes, net of federal tax benefit   4.2    5.3    14.1 
Foreign income inclusion   (0.4)   (1.6)   (10.2)
Foreign taxes at other rates   0.6    4.4    (4.4)
Permanent tax differences   (0.8)   (0.5)   (3.9)
Intercompany items   —    2.2    (11.0)
Compensation items   —    —    (12.7)
Tax reserves   (6.0)   0.8    (7.2)
Additional U.S. tax on undistributed foreign earnings   (32.7)   (0.5)   37.6 
Net increase in valuation allowance for deferred tax assets   (11.4)   (27.3)   (3.4)
Return to provision adjustments   3.9    4.0    15.3 
Other   (0.2)   0.1    (1.2)
Effective tax rate   (8.8)%   20.9%   47.0%

 
Schedule of deferred tax assets and liabilities

Our deferred tax assets and liabilities reflect continuing operations as of May 28, 2016 and May 30, 2015. Significant components are as follows (in thousands):

 

   Fiscal Year Ended
   May 28,
 2016		  May 30,
 2015
Deferred tax assets:      
NOL carryforwards - foreign and domestic  $9,089   $5,960 
Inventory valuations   1,141    1,060 
Goodwill   798    1,031 
Foreign tax credits   304    322 
Severance reserve   34    — 
Foreign capital loss   1,079    1,073 
Other   2,167    1,983 
Subtotal  $14,612   $11,429 
Valuation allowance - foreign and domestic   (5,871)   (5,158)
Net deferred tax assets after valuation allowance  $8,741   $6,271 
Deferred tax liabilities:          
Accelerated depreciation  $(973)  $(218)
Tax on undistributed foreign earnings   (6,702)   (4,813)
Other   (175)   (202)
Subtotal  $(7,850)  $(5,233)
Net deferred tax assets  $891   $1,038 
Supplemental disclosure of deferred tax assets :          
Domestic  $4,190   $3,477 
Foreign  $2,549   $2,710 
Total  $6,739   $6,187 

  
Schedule of unrecognized tax benefits

The following table summarizes the activity related to the unrecognized tax benefits (in thousands):

 

    Fiscal Year Ended
    May 28,
 2016		   May 30,
 2015
Unrecognized tax benefits, beginning of period   $ 2,000     $ 161  
Increase in positions taken in prior period     299       2,000  
Decrease in positions due to settlements     (299 )     (161 )
Unrecognized tax benefits, end of period   $ 2,000     $ 2,000  

 

Unrecognized tax benefits for continuing and discontinued operations are as follows (in thousands):

 

   Fiscal Year Ended
   May 28,
 2016		  May 30,
 2015
Continuing operations  $117   $117 
Discontinued operations (1)   1,883    1,883 
   $2,000   $2,000 

 

(1) Relates to an amended state income tax return