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INCOME TAXES (Tables) | 12 Months Ended
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Jun. 30, 2017
Income Tax Disclosure [Abstract] |
Components of income (loss) before income taxes | The components of (loss) income before income taxes are as follows:
|  | Fiscal Years
|  | 2017 |  | 2016 |  | 2015
|  | (Dollars in thousands)
(Loss) income before income taxes: |  |  |  |  |  |
U.S. |  | $ | (7,759 | ) |  | $ | 12,481 |  |  | $ | (6,630 | )
International |  | 924 |  |  | 35 |  |  | 1,652 |
|  | $ | (6,835 | ) |  | $ | 12,516 |  |  | $ | (4,978 | )
Provision (benefit) for income taxes | The provision for income taxes consists of:
|  | Fiscal Years
|  | 2017 |  | 2016 |  | 2015
|  | (Dollars in thousands)
Current: |  |  |  |  |  |
U.S. |  | $ | 994 |  |  | $ | 819 |  |  | $ | 1,670 |
International |  | 268 |  |  | 1,207 |  |  | 1,781 |
Deferred: |  |  |  |  |  |
U.S. |  | 7,901 |  |  | 6,997 |  |  | 9,439 |
International |  | 61 |  |  | 26 |  |  | 1,715 |
|  | $ | 9,224 |  |  | $ | 9,049 |  |  | $ | 14,605 |
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
|  | 2017 |  | 2016 |  | 2015
U.S. statutory rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal income tax benefit |  | (2.2 | ) |  | 5.4 |  |  | (3.7 | )
Valuation allowance (1) |  | (168.0 | ) |  | 66.5 |  |  | (362.8 | )
Foreign income taxes at other than U.S. rates |  | (2.0 | ) |  | 2.5 |  |  | (5.3 | )
Officer life insurance |  | 6.8 |  |  | (7.6 | ) |  | 9.6 |
Work Opportunity and Welfare-to-Work Tax Credits |  | 23.2 |  |  | (24.7 | ) |  | 53.3 |
Expiration of capital loss carryforward |  | — |  |  | — |  |  | (9.5 | )
Other, net (2) |  | (27.8 | ) |  | (4.8 | ) |  | (10.0 | )
|  | (135.0 | )% |  | 72.3 | % |  | (293.4 | )%
_______________________________________________________________________________ (1) See Note 1 to the Consolidated Financial Statements. (2) The (27.8)% of Other, net in fiscal year 2017 includes the rate impact of meals and entertainment expense disallowance, adjustments resulting from charitable contributions, employee share-based compensation payments, and miscellaneous items of (5.5)%, (8.6)%, (21.8)%, and 8.1%, respectively. Miscellaneous items do not include any items in excess of 5% of computed tax. The 4.8% of Other, net in fiscal year 2016 does not include the rate impact of any items in excess of 5% of computed tax. The (10.0)% of Other, net in fiscal year 2015 includes the rate impact of meals and entertainment expense disallowance and miscellaneous items of (6.0)% and (4.0)%, respectively.
Components of the net deferred tax assets and liabilities | The components of the net deferred tax assets and liabilities are as follows:
|  | June 30,
|  | 2017 |  | 2016
|  | (Dollars in thousands)
Deferred tax assets: |  |  |  |
Deferred rent |  | $ | 13,216 |  |  | $ | 14,542 |
Payroll and payroll related costs |  | 24,666 |  |  | 27,066 |
Net operating loss carryforwards |  | 29,171 |  |  | 22,433 |
Tax credit carryforwards |  | 32,852 |  |  | 30,386 |
Inventories |  | 1,914 |  |  | 2,369 |
Fixed assets |  | 7,982 |  |  | 82 |
Accrued advertising |  | 2,723 |  |  | 3,076 |
Insurance |  | 4,153 |  |  | 4,285 |
Other |  | 7,494 |  |  | 7,809 |
Subtotal |  | $ | 124,171 |  |  | $ | 112,048 |
Valuation allowance |  | (120,903 | ) |  | (110,046 | )
Total deferred tax assets |  | $ | 3,268 |  |  | $ | 2,002 |
Deferred tax liabilities: |  |  |  |
Goodwill and intangibles |  | $ | (103,889 | ) |  | $ | (95,451 | )
Other |  | (7,498 | ) |  | (6,720 | )
Total deferred tax liabilities |  | $ | (111,387 | ) |  | $ | (102,171 | )
Net deferred tax liability |  | $ | (108,119 | ) |  | $ | (100,169 | )
Unrecognized tax benefits | A rollforward of the unrecognized tax benefits is as follows:
|  | Fiscal Years
|  | 2017 |  | 2016 |  | 2015
|  | (Dollars in thousands)
Balance at beginning of period |  | $ | 1,357 |  |  | $ | 1,496 |  |  | $ | 1,468 |
Additions based on tax positions related to the current year |  | 259 |  |  | 138 |  |  | 37 |
Additions based on tax positions of prior years |  | 80 |  |  | 170 |  |  | 352 |
Reductions on tax positions related to the expiration of the statute of limitations |  | (179 | ) |  | (207 | ) |  | (361 | )
Settlements |  | (129 | ) |  | (240 | ) |  | — |
Balance at end of period |  | $ | 1,388 |  |  | $ | 1,357 |  |  | $ | 1,496 |

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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=65882285&loc=d3e32639-109319 + 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=65882285&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for 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 and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32840-109319 + Details
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