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INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2025

Income Tax Disclosure [Abstract]

Schedule of Components of Income (Loss) from Continuing Operations Before Income Taxes

The components of income (loss) from continuing operations before income taxes are as follows:

						Fiscal Years
						2025						2024						2023
						(Dollars in thousands)
Income (loss) before income taxes
U.S.						$	2,709					$	91,279					$	(10,204)
International						(1,173)						(1,343)						(1,794)
						$	1,536					$	89,936					$	(11,998)

Schedule of (Benefit) Provision for Income Taxes

The (benefit) provision for income taxes consists of:

						Fiscal Years
						2025						2024						2023
						(Dollars in thousands)
Current:
U.S.						$	252					$	427					$	(219)
International						—						(77)						(428)
Deferred (1):
U.S.						(109,886)						531						(270)
International						(5,862)						(12)						262
						$	(115,496)					$	869					$	(655)

_______________________________________________________________________________

(1)The deferred income tax benefit in fiscal year 2025 is primarily due to the release of a prior year valuation allowance in the U.S. of $110.2 million and Canada of $6.1 million.

Schedule of (Benefit) Provision for Income Taxes Rate to Income (Loss) from Continuing Operations Before Income Taxes

The (benefit) provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory rate to income (loss) from continuing operations before income taxes, as a result of the following:

						Fiscal Years
						2025						2024						2023
U.S. statutory rate						21.0		%				21.0		%				21.0		%
State income taxes, net of federal income tax benefit						(16.5)						2.3						(2.7)
Valuation allowance (1)						(7,897.3)						(21.9)						(12.9)
Foreign income taxes at other than U.S. rates						(18.5)						(0.2)						(0.2)
Uncertain tax positions						0.7						(0.1)						6.7
Stock-based compensation						24.9						0.2						(2.7)
Deferred tax rate remeasurement						(78.4)						—						(3.6)
Executive compensation limitation						10.0						—						(0.9)
Acquired deferred taxes						(2.3)						—						—
Tax attribute expiration (2)						428.4						—						(1.1)
Other, net (3)						8.7						(0.3)						1.9
Effective tax rate						(7,519.3)		%				1.0		%				5.5		%

_______________________________________________________________________________

(1)The change in valuation allowance for fiscal year 2025 primarily relates to a release of a majority of the U.S. prior year valuation allowance and a release of a portion of the Canadian prior year valuation allowance.

(2)The tax attribute expiration primarily relates to the expiration of a capital loss generated in fiscal year 2020, which was not offset by subsequent capital gains and is subject to a five-year carryforward period.

(3)The 8.7% of other, net in fiscal year 2025 includes the rate impact of the federal provision to return true-up and permanent adjustments of 6.2% and 2.5%, respectively. The (0.3)% of other, net in fiscal year 2024 does not include the rate impact of any items in excess of 5% of computed tax. The 1.9% of other, net in fiscal year 2023 includes the rate impact of the federal provision to return true-up and miscellaneous items of 1.3% and 0.6%, respectively.

Schedule of Components of the Net Deferred Tax Assets and Liabilities

The components of the net deferred tax assets and liabilities are as follows:

						June 30,
						2025						2024
						(Dollars in thousands)
Deferred tax assets:
Payroll and payroll related costs						$	4,929					$	5,422
Net operating loss carryforwards						136,471						138,691
Tax credit carryforwards						37,443						37,647
Capital loss carryforwards						1,027						5,879
Deferred franchise fees						3,395						5,301
Operating lease liabilities						57,492						74,409
Interest expense carryforward						13,289						8,200
Other						2,580						6,346
Subtotal						256,626						281,895
Valuation allowance						(60,460)						(181,759)
Total deferred tax assets						$	196,166					$	100,136
Deferred tax liabilities:
Goodwill and intangibles						$	(34,087)					$	(35,509)
Operating lease assets						(57,149)						(73,809)
Other						(2,426)						(2,220)
Total deferred tax liabilities						(93,662)						(111,538)
Net deferred tax asset (liability)						$	102,504					$	(11,402)

Schedule of Unrecognized Tax Benefits Roll Forward

A rollforward of the unrecognized tax benefits is as follows:

						Fiscal Years
						2025						2024
						(Dollars in thousands)
Balance at beginning of period						$	21,232					$	21,393
Additions based on tax positions related to the current year						3						3
Additions based on tax positions of prior years						8						12
Reductions on tax positions related to the expiration of the statute of limitations						(49)						(176)
Balance at end of period						$	21,194					$	21,232

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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.

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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.

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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.

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

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