XML 49 R25.htm IDEA: XBRL DOCUMENT v3.21.2

Income Taxes (Tables)

12 Months Ended

May 29, 2021

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Tax, Domestic and Foreign

Income (loss) before income taxes included the following components (in thousands): 

		Fiscal Year Ended
		May 29, 2021				May 30, 2020				June 1, 2019
United States		$	1,077			$	(3,716	)		$	(9,971	)
Foreign			1,231				2,502				3,660
Income (loss) before income taxes		$	2,308			$	(1,214	)		$	(6,311	)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for fiscal 2021, fiscal 2020 and fiscal 2019 consisted of the following (in thousands): 

		Fiscal Year Ended
		May 29, 2021				May 30, 2020				June 1, 2019
Current:
Federal		$	108			$	—			$	33
State			—				—				3
Foreign			665				616				652
Total current		$	773			$	616			$	688
Deferred:
Federal		$	—			$	(88	)		$	(104	)
Foreign			(120	)			96				433
Total deferred		$	(120	)		$	8			$	329
Income tax provision		$	653			$	624			$	1,017

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 2021, fiscal 2020 and fiscal 2019 and the reported income tax provision for fiscal 2021, fiscal 2020 and fiscal 2019, are summarized as follows:

		Fiscal Year Ended
		May 29, 2021				May 30, 2020				June 1, 2019
Federal statutory rate			21.0	%			21.0	%			21.0	%
Effect of:
State income taxes, net of federal tax benefit			21.6				6.6				5.4
Foreign taxes at other rates			10.5				(15.3	)			(4.1	)
Permanent tax differences			18.3				(41.1	)			(16.1	)
Change in valuation allowance for deferred tax assets			(49.7	)			(29.8	)			(22.8	)
Return to provision adjustments			2.2				1.4				(0.5	)
Other			4.4				5.8				1.0
Effective tax rate			28.3	%			(51.4	)%			(16.1	)%

Schedule of Deferred Tax Assets and Liabilities

 

		Fiscal Year Ended
		May 29, 2021				May 30, 2020
Deferred tax assets:
NOL carryforwards - foreign and domestic		$	7,362			$	7,834
Inventory valuations			1,501				1,388
Goodwill			1,286				1,390
Foreign tax credits			1,782				1,782
Severance reserve			185				165
Foreign capital loss			1,261				1,167
Other			1,469				1,847
Subtotal		$	14,846			$	15,573
Valuation allowance - foreign and domestic			(12,225	)			(12,322	)
Net deferred tax assets after valuation allowance		$	2,621			$	3,251
Deferred tax liabilities:
Accelerated depreciation		$	(2,279	)		$	(2,944	)
Tax on undistributed earnings			(24	)			(24	)
Other		18				13
Subtotal		$	(2,285	)		$	(2,955	)
Net deferred tax assets		$	336			$	296
Supplemental disclosure of net deferred tax assets,    excluding valuation allowance:
Domestic		$	10,653			$	10,925
Foreign			1,913				1,693
Total		$	12,566			$	12,618

On December 22, 2017, the U.S. government enacted new tax legislation, Tax Cuts and Jobs Act (the “Act”). The Company was subject to requirements of the Act beginning in fiscal 2019. Provisions include an income inclusion for global intangible low-taxed income (“GILTI”), a tax determined by base erosion and anti-avoidance tax (“BEAT”) related to certain payments between a U.S. corporation and foreign related entities, a limitation of certain executive compensation and a deduction for foreign derived intangible income. The Company has determined its accounting policy to treat the taxes due on GILTI as a period cost. The Company is not subject to the BEAT provision due to the revenue thresholds. During fiscal 2021, final regulations were released that provide taxpayers with a high tax exception (“HTE”) election. Given the Company’s tax profile, the Company intends to make such election with its fiscal 2021 tax return, and the forecasted GILTI inclusion has been estimated assuming the HTE is elected. The Company made this election on its fiscal 2020 tax return, adjusting its NOL and offsetting valuation allowance.

Schedule of Unrecognized Tax Benefits

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

		Fiscal Year Ended
		May 29, 2021				May 30, 2020
Unrecognized tax benefits, beginning of period		$	129			$	130
Currency translation adjustment			13				(1	)
Unrecognized tax benefits, end of period		$	142			$	129

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=84230637&loc=d3e32639-109319

+ Details

Name:	us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum: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=84230637&loc=d3e32537-109319

+ Details

Name:	us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum: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=84230637&loc=d3e32687-109319

+ Details

Name:	us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h)(1)(i))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Name:	us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum: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=121610041&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=84230637&loc=SL6600010-109319

+ Details

Name:	us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration