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INCOME TAXES (Tables) | 12 Months Ended
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May 27, 2017
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 27, 2017 |  |  | May 28, 2016 |  |  | May 30, 2015 |
United States |  | $ | (8,150 | ) |  | $ | (7,274 | ) |  | $ | (9,287 | )
Foreign |  |  | 2,034 |  |  |  | 1,054 |  |  |  | 2,293 |
Loss before income taxes |  | $ | (6,116 | ) |  | $ | (6,220 | ) |  | $ | (6,994 | )
Schedule of components of income tax expense (benefit) | The provision (benefit) for income taxes for fiscal 2017, 2016, and 2015 consists of the following (in thousands):
|  | Fiscal Year Ended |
|  | May 27, 2017 |  |  | May 28, 2016 |  |  | May 30, 2015 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | (117 | ) |  | $ | — |  |  | $ | (326 | )
State |  |  | 3 |  |  |  | 17 |  |  |  | 14 |
Foreign |  |  | 1,035 |  |  |  | 441 |  |  |  | 191 |
Total current |  | $ | 921 |  |  | $ | 458 |  |  | $ | (121 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | — |  |  | $ | (1,964 | )
State |  |  | — |  |  |  | — |  |  |  | 530 |
Foreign |  |  | (109 | ) |  |  | 88 |  |  |  | 89 |
Total deferred |  | $ | (109 | ) |  | $ | 88 |  |  | $ | (1,345 | )
Income tax provision (benefit) |  | $ | 812 |  |  | $ | 546 |  |  | $ | (1,466 | )
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 2017, 2016, and 2015 are summarized as follows:
|  | Fiscal Year Ended |
|  | May 27, 2017 |  |  | May 28, 2016 |  |  | May 30, 2015 |
Federal statutory rate |  |  | 34 | % |  |  | 34 | % |  |  | 34 | %
Effect of: |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal tax benefit |  |  | 4.8 |  |  |  | 4.2 |  |  |  | 5.3 |
Foreign income inclusion |  |  | (20.7 | ) |  |  | (0.4 | ) |  |  | (1.6 | )
Foreign taxes at other rates |  |  | 1.0 |  |  |  | 0.6 |  |  |  | 4.4 |
Permanent tax differences |  |  | (0.5 | ) |  |  | (0.8 | ) |  |  | (0.5 | )
Intercompany items |  |  | — |  |  |  | — |  |  |  | 2.2 |
Tax reserves |  |  | 0.9 |  |  |  | (6.0 | ) |  |  | 0.8 |
Additional U.S. tax on undistributed foreign earnings |  |  | 15.8 |  |  |  | (32.7 | ) |  |  | (0.5 | )
Net increase in valuation allowance for deferred tax assets |  |  | (46.6 | ) |  |  | (11.4 | ) |  |  | (27.3 | )
Return to provision adjustments |  |  | (2.0 | ) |  |  | 3.9 |  |  |  | 4.0 |
Other |  |  | — |  |  |  | (0.2 | ) |  |  | 0.1 |
Effective tax rate |  |  | (13.3 | )% |  |  | (8.8 | )% |  |  | 20.9 | %
Schedule of deferred tax assets and liabilities | Our deferred tax assets and liabilities reflect continuing operations as of May 27, 2017 and May 28, 2016. Significant components are as follows (in thousands):
|  | Fiscal Year Ended |
|  | May 27, 2017 |  |  | May 28, 2016 |
Deferred tax assets: |  |  |  |  |  |  |  |
NOL carryforwards - foreign and domestic |  | $ | 7,870 |  |  | $ | 9,089 |
Inventory valuations |  |  | 1,141 |  |  |  | 1,141 |
Goodwill |  |  | 325 |  |  |  | 798 |
Foreign tax credits |  |  | 3,808 |  |  |  | 304 |
Severance reserve |  |  | 227 |  |  |  | 34 |
Foreign capital loss |  |  | 1,142 |  |  |  | 1,079 |
Other |  |  | 2,048 |  |  |  | 2,167 |
Subtotal |  | $ | 16,561 |  |  | $ | 14,612 |
Valuation allowance - foreign and domestic |  |  | (8,557 | ) |  |  | (5,871 | )
Net deferred tax assets after valuation allowance |  | $ | 8,004 |  |  | $ | 8,741 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Accelerated depreciation |  | $ | (1,356 | ) |  | $ | (973 | )
Tax on undistributed foreign earnings |  |  | (5,738 | ) |  |  | (6,702 | )
Other |  |  | 35 |  |  |  | (175 | )
Subtotal |  | $ | (7,059 | ) |  | $ | (7,850 | )
Net deferred tax assets |  | $ | 945 |  |  | $ | 891 |
Supplemental disclosure of deferred tax assets : |  |  |  |  |  |  |  |
Domestic |  | $ | 6,937 |  |  | $ | 4,190 |
Foreign |  | $ | 2,565 |  |  | $ | 2,549 |
Total |  | $ | 9,502 |  |  | $ | 6,739 |
Schedule of unrecognized tax benefits | The following table summarizes the activity related to the unrecognized tax benefits (in thousands):
|  | Fiscal Year Ended |
|  | May 27, 2017 |  |  | May 28, 2016 |
Unrecognized tax benefits, beginning of period |  | $ | 2,000 |  |  | $ | 2,000 |
Increase in positions taken in prior period |  |  | 75 |  |  |  | 299 |
Decrease in positions due to settlements |  |  | (75 | ) |  |  | — |
Decrease related to the expiration of statute of limitations |  |  | (117 | ) |  |  | (299 | )
Unrecognized tax benefits, end of period |  | $ | 1,883 |  |  | $ | 2,000 |
Unrecognized tax benefits for continuing and discontinued operations are as follows (in thousands):
|  | Fiscal Year Ended |
|  | May 27, 2017 |  |  | May 28, 2016 |
Continuing operations |  | $ | — |  |  | $ | 117 |
Discontinued operations (1) |  |  | 1,883 |  |  |  | 1,883 |
|  | $ | 1,883 |  |  | $ | 2,000 |
(1) | Relates to an amended Illinois state income tax return related to the sale of RFPD.

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