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INCOME TAXES (Tables) | 12 Months Ended
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Jun. 30, 2014
Income Tax Disclosure [Abstract] |
Components of income (loss) before income taxes | The components of (loss) income before income taxes are as follows:
|  | Fiscal Years
|  | 2014 |  | 2013 |  | 2012
|  | (Dollars in thousands)
(Loss) income before income taxes: |  |  |  |  |  |
U.S. |  | $ | (51,866 | ) |  | $ | (25,177 | ) |  | $ | (35,430 | )
International |  | (2,462 | ) |  | 35,275 |  |  | 10,116 |
|  | $ | (54,328 | ) |  | $ | 10,098 |  |  | $ | (25,314 | )
(Benefit) provision for income taxes | The provision (benefit) for income taxes consists of:
|  | Fiscal Years
|  | 2014 |  | 2013 |  | 2012
|  | (Dollars in thousands)
Current: |  |  |  |  |  |
U.S. |  | $ | 1,460 |  |  | $ | (21,053 | ) |  | $ | (1,095 | )
International |  | 890 |  |  | 707 |  |  | 2,261 |
Deferred: |  |  |  |  |  |
U.S. |  | 67,992 |  |  | 10,405 |  |  | (5,519 | )
International |  | 787 |  |  | (83 | ) |  | (77 | )
|  | $ | 71,129 |  |  | $ | (10,024 | ) |  | $ | (4,430 | )
Provision for income taxes, reconciliation to applicable U.S. statutory rate | The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory rate to earnings (loss) before income taxes, as a result of the following:
|  | Fiscal Years
|  | 2014 |  | 2013 |  | 2012
U.S. statutory rate (benefit) |  | (35.0 | )% |  | 35.0 | % |  | (35.0 | )%
State income taxes, net of federal income tax benefit |  | (0.2 | ) |  | 3.6 |  |  | 3.5 |
Valuation allowance (1) |  | 160.8 |  |  | — |  |  | — |
Tax effect of goodwill impairment |  | 11.5 |  |  | — |  |  | 47.7 |
Foreign income taxes at other than U.S. rates |  | 1.4 |  |  | 4.1 |  |  | (0.5 | )
Tax effect of foreign currency translation gain |  | — |  |  | (107.0 | ) |  | — |
Work Opportunity and Welfare-to-Work Tax Credits |  | (5.3 | ) |  | (42.8 | ) |  | (19.4 | )
Other, net |  | (2.3 | ) |  | 7.8 |  |  | (13.8 | )
|  | 130.9 | % |  | (99.3 | )% |  | (17.5 | )%
_______________________________________________________________________________ (1) See Note 1 to the Consolidated Financial Statements.
Components of the net deferred tax assets and liabilities | A summary of the activity for the deferred tax asset valuation allowance follows:
| Fiscal Year 2014
| (Dollars in thousands)
Balance, June 30, 2013 | $ | — |
Establishment of valuation allowance against U.S. & U.K. deferred tax assets | 84,391 |
Changes to deferred tax asset valuation allowance | (469 | )
Balance, June 30, 2014 | $ | 83,922 |
The components of the net deferred tax assets and liabilities are as follows:
|  | June 30,
|  | 2014 |  | 2013
|  | (Dollars in thousands)
Deferred tax assets: |  |  |  |
Deferred rent |  | $ | 12,625 |  |  | $ | 12,953 |
Payroll and payroll related costs |  | 24,857 |  |  | 34,073 |
Net operating loss carryforwards |  | 17,180 |  |  | 2,484 |
Tax credit carryforwards |  | 20,134 |  |  | 4,366 |
Inventories |  | 2,926 |  |  | 7,920 |
Allowance for doubtful accounts/notes |  | 216 |  |  | 7,004 |
Insurance |  | 6,195 |  |  | 6,106 |
Other |  | 8,815 |  |  | 14,353 |
Subtotal |  | $ | 92,948 |  |  | $ | 89,259 |
Valuation allowance |  | (83,922 | ) |  | — |
Total deferred tax assets |  | $ | 9,026 |  |  | $ | 89,259 |
Deferred tax liabilities: |  |  |  |
Depreciation |  | $ | (8,086 | ) |  | $ | (20,684 | )
Amortization of intangibles |  | (77,650 | ) |  | (72,635 | )
Other |  | (5,689 | ) |  | (7,206 | )
Total deferred tax liabilities |  | $ | (91,425 | ) |  | $ | (100,525 | )
Net deferred tax (liability) asset |  | $ | (82,399 | ) |  | $ | (11,266 | )
Unrecognized tax benefits | A rollforward of the unrecognized tax benefits is as follows:
|  | Fiscal Years
|  | 2014 |  | 2013 |  | 2012
|  | (Dollars in thousands)
Balance at beginning of period |  | $ | 10,015 |  |  | $ | 4,381 |  |  | $ | 13,493 |
(Reductions)/additions based on tax positions related to the current year |  | (2,114 | ) |  | 44 |  |  | 482 |
(Reductions)/additions based on tax positions of prior years |  | (505 | ) |  | 7,132 |  |  | (7 | )
Reductions on tax positions related to the expiration of the statute of limitations |  | (994 | ) |  | (1,403 | ) |  | (1,571 | )
Settlements |  | (4,934 | ) |  | (139 | ) |  | (8,016 | )
Balance at end of period |  | $ | 1,468 |  |  | $ | 10,015 |  |  | $ | 4,381 |

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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://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 + Details
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- 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://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 + Details
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- 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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: 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)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + 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 + Details
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