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Income Taxes (Tables) | 12 Months Ended
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Jun. 01, 2019
Income Tax Disclosure [Abstract] |
Schedule of Income Before Income Tax, Domestic and Foreign | (Loss) income from continuing operations before income taxes included the following components (in thousands):
|  | Fiscal Year Ended |
|  | June 1, 2019 |  |  | June 2, 2018 |  |  | May 27, 2017 |
United States |  | $ | (9,971 | ) |  | $ | (211 | ) |  | $ | (8,150 | )
Foreign |  |  | 3,660 |  |  |  | 4,071 |  |  |  | 2,034 |
(Loss) income before income taxes |  | $ | (6,311 | ) |  | $ | 3,860 |  |  | $ | (6,116 | )
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes for fiscal 2019, fiscal 2018 and fiscal 2017 consisted of the following (in thousands):
|  | Fiscal Year Ended |
|  | June 1, 2019 |  |  | June 2, 2018 |  |  | May 27, 2017 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 33 |  |  | $ | — |  |  | $ | (117 | )
State |  |  | 3 |  |  |  | (12 | ) |  |  | 3 |
Foreign |  |  | 652 |  |  |  | 1,220 |  |  |  | 1,035 |
Total current |  | $ | 688 |  |  | $ | 1,208 |  |  | $ | 921 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | (104 | ) |  | $ | 124 |  |  | $ | — |
State |  |  | — |  |  |  | — |  |  |  | — |
Foreign |  |  | 433 |  |  |  | 202 |  |  |  | (109 | )
Total deferred |  | $ | 329 |  |  | $ | 326 |  |  | $ | (109 | )
Income tax provision |  | $ | 1,017 |  |  | $ | 1,534 |  |  | $ | 812 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between income taxes at the U.S. federal statutory income tax rate of 21.0% for fiscal 2019, 29.2% for fiscal 2018 and 34.0% for fiscal 2017 and the reported income tax provision for fiscal 2019, fiscal 2018 and fiscal 2017 are summarized as follows:
|  | Fiscal Year Ended |
|  | June 1, 2019 |  |  | June 2, 2018 |  |  | May 27, 2017 |
Federal statutory rate |  |  | 21.0 | % |  |  | 29.2 | % |  |  | 34.0 | %
Effect of: |  |  |  |  |  |  |  |  |  |  |  |
State income taxes, net of federal tax benefit |  |  | 5.4 |  |  |  | 0.3 |  |  |  | 4.8 |
Deemed repatriation tax |  |  | — |  |  |  | (50.0 | ) |  |  | — |
Foreign income inclusion |  |  | — |  |  |  | — |  |  |  | (20.7 | )
Foreign taxes at other rates |  |  | (4.1 | ) |  |  | (0.1 | ) |  |  | 1.0 |
Permanent tax differences |  |  | (16.1 | ) |  |  | 6.7 |  |  |  | (0.5 | )
Deferred remeasurement |  |  | — |  |  |  | 45.1 |  |  |  | — |
Tax reserves |  |  | — |  |  |  | 3.6 |  |  |  | 0.9 |
Additional U.S. tax on undistributed foreign earnings |  |  | — |  |  |  | (12.5 | ) |  |  | 15.8 |
Change in valuation allowance for deferred tax assets |  |  | (22.8 | ) |  |  | 15.1 |  |  |  | (46.6 | )
Return to provision adjustments |  |  | (0.5 | ) |  |  | 0.1 |  |  |  | (2.0 | )
Closure of foreign audits |  |  | — |  |  |  | 2.2 |  |  |  | — |
Other |  |  | 1.0 |  |  |  | — |  |  |  | — |
Effective tax rate |  |  | (16.1 | )% |  |  | 39.7 | % |  |  | (13.3 | )%
Schedule of Deferred Tax Assets and Liabilities | Our deferred tax assets and liabilities reflect continuing operations as of June 1, 2019 and June 2, 2018. Significant components were as follows (in thousands):
|  | Fiscal Year Ended |
|  | June 1, 2019 |  |  | June 2, 2018 |
Deferred tax assets: |  |  |  |  |  |  |  |
NOL carryforwards - foreign and domestic |  | $ | 7,458 |  |  | $ | 7,883 |
Inventory valuations |  |  | 1,179 |  |  |  | 978 |
Goodwill |  |  | 1,578 |  |  | 294 |
Foreign tax credits |  |  | 1,782 |  |  |  | 465 |
Severance reserve |  |  | 188 |  |  | 119 |
Foreign capital loss |  |  | 1,129 |  |  |  | 1,143 |
Other |  |  | 1,737 |  |  |  | 1,632 |
Subtotal |  | $ | 15,051 |  |  | $ | 12,514 |
Valuation allowance - foreign and domestic |  |  | (11,706 | ) |  |  | (9,148 | )
Net deferred tax assets after valuation allowance |  | $ | 3,345 |  |  | $ | 3,366 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Accelerated depreciation |  | $ | (2,908 | ) |  | $ | (2,474 | )
Tax on undistributed earnings |  |  | (141 | ) |  |  | (274 | )
Other |  | 21 |  |  | 28 |
Subtotal |  | $ | (3,028 | ) |  | $ | (2,720 | )
Net deferred tax assets |  | $ | 317 |  |  | $ | 646 |
Supplemental disclosure of net deferred tax assets, excluding valuation allowance: |  |  |  |  |  |  |  |
Domestic |  | $ | 10,194 |  |  | $ | 7,394 |
Foreign |  | $ | 1,829 |  |  | $ | 2,401 |
Total |  | $ | 12,023 |  |  | $ | 9,795 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits (in thousands):
|  | Fiscal Year Ended |
|  | June 1, 2019 |  |  | June 2, 2018 |
Unrecognized tax benefits, beginning of period |  | $ | 138 |  |  | $ | 1,883 |
Increase in positions taken in prior period |  |  | — |  |  |  | 138 |
Decrease in positions due to settlements |  |  | — |  |  |  | (1,883 | )
Currency translation adjustment |  |  | (8 | ) |  |  | — |
Unrecognized tax benefits, end of period |  | $ | 130 |  |  | $ | 138 |

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- 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=84230637&loc=d3e32639-109319 + Details
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