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Note 14 - Income Taxes | 12 Months Ended
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Jun. 29, 2014
Income Tax Disclosure [Abstract] |
Income Tax Disclosure [Text Block] | 14. Income Taxes Components of i ncome before income tax es The components of income before income taxes consist of the following:
|  | For the Fiscal Years Ended |
|  | June 29, 2014 |  |  | June 30, 2013 |  |  | June 24, 2012 |
United States |  | $ | 38,816 |  |  | $ | 16,900 |  |  | $ | 3,010 |
Foreign |  |  | 9,065 |  |  |  | 12,114 |  |  |  | 5,839 |
Income before income taxes |  | $ | 47,881 |  |  | $ | 29,014 |  |  | $ | 8,849 |
Components of p rovision (benefit) for income taxes The components of provision (benefit) for income taxes consist of the following:
|  | For the Fiscal Years Ended |
|  | June 29, 2014 |  |  | June 30, 2013 |  |  | June 24, 2012 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 14,463 |  |  | $ | 2,399 |  |  | $ | 457 |
State |  |  | 1,035 |  |  |  | 119 |  |  |  | 69 |
Foreign |  |  | 4,092 |  |  |  | 5,210 |  |  |  | 4,549 |
|  |  | 19,590 |  |  |  | 7,728 |  |  |  | 5,075 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 183 |  |  |  | 7,086 |  |  |  | (2,733 | )
State |  |  | 900 |  |  |  | 542 |  |  |  | (3,285 | )
Foreign |  |  | (512 | ) |  |  | (2,012 | ) |  |  | (1,036 | )
|  |  | 571 |  |  |  | 5,616 |  |  |  | (7,054 | )
Provision (benefit) for income taxes |  | $ | 20,161 |  |  | $ | 13,344 |  |  | $ | (1,979 | )
Federal deferred tax expense includes the utilization of net operating loss carryforwards of $7,904 and $8,930 for fiscal years June 30, 2013 and June 24, 2012, respectively. State deferred tax expense includes the utilization of net operating loss carryforwards of $499, $825 and $307 for fiscal years June 29, 2014, June 30, 2013 and June 24, 2012, respectively. Foreign deferred tax expense includes the utilization of net operating loss carryforwards of $216, $258 and $601 for fiscal years June 29, 2014, June 30, 2013 and June 24, 2012, respectively. Effective income tax rate The provision (benefit) for income taxes computed by applying the federal statutory tax rate as reconciled to the effective tax rate is as follows:
|  | For the Fiscal Years Ended |
|  | June 29, 2014 |  |  | June 30, 2013 |  |  | June 24, 2012 |
Federal statutory tax rate |  |  | 35.0 | % |  |  | 35.0 | % |  |  | 35.0 | %
State income taxes, net of federal tax benefit |  |  | 2.8 |  |  |  | 2.1 |  |  |  | 0.5 |
Foreign income taxed at different rates |  |  | (0.7 | ) |  |  | (0.1 | ) |  |  | (7.3 | )
Repatriation of foreign earnings |  |  | 0.4 |  |  |  | 1.1 |  |  |  | 71.6 |
Unremitted foreign earnings, net of foreign tax credit |  |  | 0.5 |  |  |  | 1.0 |  |  |  | 54.2 |
Change in valuation allowance |  |  | 4.5 |  |  |  | 10.3 |  |  |  | (180.2 | )
Domestic production activities deduction |  |  | (2.3 | ) |  |  | (1.2 | ) |  |  | — |
Research and other credits |  |  | (0.3 | ) |  |  | (3.5 | ) |  |  | — |
Nondeductible expenses and other |  |  | 2.2 |  |  |  | 1.3 |  |  |  | 3.8 |
Effective tax rate |  |  | 42.1 | % |  |  | 46.0 | % |  |  | (22.4% | )
The Company’s effective tax rate for the year ended June 29, 2014 was significantly impacted by the increase in the valuation allowance primarily related to equity investments, partially offset by the domestic production activities deduction, research and development credits and other credits. Deferred income taxes The significant components of the Company’s deferred tax assets and liabilities consist of the following:
|  | June 29, 2014 |  |  | June 30, 2013 |
Deferred tax assets: |  |  |  |  |  |  |  |
Investments, including unconsolidated affiliates |  | $ | 13,682 |  |  | $ | 12,318 |
State tax credits |  |  | 85 |  |  |  | 314 |
Accrued liabilities and valuation reserves |  |  | 4,187 |  |  |  | 4,189 |
Net operating loss carryforwards |  |  | 1,635 |  |  |  | 1,980 |
Intangible assets |  |  | 5,259 |  |  |  | 6,220 |
Foreign tax credits |  |  | 2,588 |  |  |  | 2,588 |
Incentive compensation plans |  |  | 2,896 |  |  |  | 3,070 |
Other items |  |  | 5,167 |  |  |  | 3,577 |
Total gross deferred tax assets |  |  | 35,499 |  |  |  | 34,256 |
Valuation allowance |  |  | (18,615 | ) |  |  | (16,690 | )
Net deferred tax assets |  |  | 16,884 |  |  |  | 17,566 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | (6,709 | ) |  |  | (6,770 | )
Unremitted foreign earnings |  |  | (7,639 | ) |  |  | (7,390 | )
Other |  |  | (618 | ) |  |  | (795 | )
Total deferred tax liabilities |  |  | (14,966 | ) |  |  | (14,955 | )
Net deferred tax asset |  | $ | 1,918 |  |  | $ | 2,611 |
Deferred income taxes - valuation allowance In assessing the realizability of deferred tax assets, the Company considers whether it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of taxable temporary differences, taxable income in carryback years, projected future taxable income and tax planning strategies in making this assessment. Since the Company operates in multiple jurisdictions, the assessment is made on a jurisdiction-by-jurisdiction basis, taking into account the effects of local tax law. The balances and activity for the Company’s deferred tax valuation allowance are as follows:
|  | For the Fiscal Years Ended |
|  | June 29, 2014 |  |  | June 30, 2013 |  |  | June 24, 2012 |
Balance at beginning of the year |  | $ | (16,690 | ) |  | $ | (13,911 | ) |  | $ | (30,164 | )
Charged to costs and expenses |  |  | (1,925 | ) |  |  | (3,243 | ) |  |  | 15,847 |
Charged to other accounts |  |  | — |  |  |  | 464 |  |  |  | 239 |
Deductions |  |  | — |  |  |  | — |  |  |  | 167 |
Balance at end of year |  | $ | (18,615 | ) |  | $ | (16,690 | ) |  | $ | (13,911 | )
Based on the assessment at June 29, 2014, the Company has recorded a valuation allowance of $18,615, of which $15,459 related to reserves against certain domestic deferred tax assets primarily related to equity investments and foreign tax credits as well as $3,156 related to reserves against certain deferred tax assets of the Company’s foreign subsidiaries primarily related to net operating loss carryforwards and equity investments. During fiscal year 2014, the Company’s valuation allowance increased by $1,925. This increase consists of $1,368 related to certain domestic equity investments and $557 related to equity investments and net operating loss carryforwards of the Company’s foreign subsidiaries. At June 30, 2013, the Company had recorded a valuation allowance of $16,690, of which $14,091 related to reserves against certain domestic deferred tax assets primarily related to equity investments and foreign tax credits as well as $2,599 related to reserves against certain deferred tax assets of the Company’s foreign subsidiaries primarily related to net operating loss carryforwards and equity investments. During fiscal year 2013, the Company’s valuation allowance increased by $2,779. This increase consisted of $3,428 related to certain foreign and domestic equity investments partially offset by a decrease of $649 related to certain foreign net operating loss carryforwards and temporary items. Deferred tax expense was reduced by $424. At June 24, 2012, the Company had recorded a valuation allowance of $13,911, of which $11,194 related to reserves against certain domestic deferred tax assets primarily related to equity investments and foreign tax credits as well as $2,717 related to equity investments and net operating loss carryforwards of the Company’s foreign subsidiaries. During fiscal year 2012, the Company’s valuation allowance decreased $16,253. This decrease consisted of $17,498 primarily due to the utilization of domestic federal and state net operating loss carryforwards during the year and the reversal of the valuation allowance for various deferred tax assets based on projected future taxable income, partially offset by $1,245 related to certain foreign equity investments. Deferred tax expense was reduced by $6,017 and $239 was recorded to accumulated other comprehensive loss. Unrecognized tax benefits A reconciliation of beginning and ending gross amounts of unrecognized tax benefits is as follows:
|  | For the Fiscal Years Ended |
|  | June 29, 2014 |  |  | June 30, 2013 |  |  | June 24, 2012 |
Balance at beginning of the year |  | $ | 964 |  |  | $ | 1,154 |  |  | $ | 775 |
Gross increases related to current period tax positions |  |  | 78 |  |  |  | 250 |  |  |  | 6 |
Gross increases related to tax positions in prior periods |  |  | 68 |  |  |  | — |  |  |  | 400 |
Gross decreases related to settlements with tax authorities |  |  | (2 | ) |  |  | — |  |  |  | — |
Gross decreases related to lapse of applicable statute of limitations |  |  | (125 | ) |  |  | (440 | ) |  |  | (27 | )
Balance at end of year |  | $ | 983 |  |  | $ | 964 |  |  | $ | 1,154 |
Unrecognized tax benefits would generate a favorable impact of $935 on the Company’s effective tax rate when recognized. The Company expects uncertain tax positions to decrease by $107 within the next twelve months due to statute expirations on certain positions. Interest and penalties recognized by the Company within provision (benefit) for income taxes were $(193), $(250) and $9 for the fiscal years ended June 29, 2014, June 30, 2013 and June 24, 2012, respectively. The Company has $118, $311 and $561 accrued for interest and/or penalties related to uncertain tax positions as of June 29, 2014, June 30, 2013 and June 24, 2012, respectively. Expiration of net operating loss carryforwards and foreign tax credits As of June 29, 2014, the Company has $8,876 of state net operating loss carryforwards, for which no valuation allowance is established, that may be used to offset future taxable income. In addition, the Company has $2,588 of foreign tax credit carryforwards of which $1,680 are offset by valuation allowances. These carryforwards, if unused, will expire as follows:
State net operating loss carryforwards | 2015 through 2033
Foreign tax credit carryforwards | 2021
Tax years subject to examination The Company and its domestic subsidiaries file a consolidated federal income tax return, as well as income tax returns in multiple state and foreign jurisdictions. The tax years subject to examination vary by jurisdiction. The Company regularly assesses the outcomes of both completed and ongoing examinations to ensure that the Company’s provision for income taxes is sufficient. During the third quarter of fiscal year 2013, the Internal Revenue Service completed an audit of the Company’s 2010 tax year, with no changes being made to the tax return reported. The Company remains subject to income tax examinations for U.S. federal income taxes for tax years 2011 through 2013, for foreign income taxes for tax years 2008 through 2013, and for state and local income taxes for tax years 2009 through 2013. The U.S. federal returns and certain state tax returns filed for the 2011 through 2013 tax years have utilized carryforward tax attributes generated in prior tax years, including net operating losses that could potentially be revised upon examination. Indefinite reinvestment assertion During fiscal year 2014, the Company increased the amount of foreign earnings expected to be repatriated by $713. The Company has plans to repatriate $21,827 of future cash flows generated from its operations in Brazil and has a deferred tax liability of $7,639 to reflect the additional income tax that would be due as a result of these plans. As of June 29, 2014, $30,643 of undistributed earnings of the Company’s foreign subsidiaries was deemed to be permanently reinvested, and any applicable U.S. federal income taxes and foreign withholding taxes have not been provided on these earnings. Computation of the potential tax liabilities associated with unremitted earnings permanently reinvested is not practicable.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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