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INCOME TAXES (Tables) | 12 Months Ended
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Jun. 30, 2012
Components of Income Tax Expense (Benefit) | Income tax provision (benefit) consists of the following:
|  | Year Ended |
|  | June 30, 2012 |  |  | July 2, 2011 |  |  | July 3, 2010 |
|  | (in thousands) |
Current income tax provision: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 1,483 |  |  | $ | 34 |  |  | $ | 162 |
Foreign |  |  | 511 |  |  |  | 242 |  |  |  | 496 |
|  |  | 1,994 |  |  |  | 276 |  |  |  | 658 |
Deferred income tax (benefit) provision: |  |  |  |  |  |  |  |  |  |  |  |
United States |  |  | (85 | ) |  |  | 1,250 |  |  |  | (3,588 | )
Foreign |  |  | 306 |  |  |  | (780 | ) |  |  | 1,526 |
|  |  | 221 |  |  |  | 470 |  |  |  | (2,062 | )
Total income tax (benefit) provision |  | $ | 2,215 |  |  | $ | 746 |  |  | $ | (1,404 | )
Effective Tax Rate Reconciliation | The Company’s effective tax rate differs from the federal tax rate as follows:
|  | Year Ended |
|  | June 30, 2012 |  |  | July 2, 2011 |  |  | July 3, 2010 |
|  | (in thousands) |
Federal income tax provision at statutory rates |  | $ | 4,706 |  |  | $ | 2,205 |  |  | $ | 2,477 |
Foreign tax rate differences |  |  | (361 | ) |  |  | (326 | ) |  |  | 99 |
Effect of income tax credits |  |  | (2,104 | ) |  |  | (1,249 | ) |  |  | — |
Effect of repatriation of foreign earnings, net |  |  | — |  |  |  | 72 |  |  |  | 2,158 |
Effect of change in applied Mexican tax regime |  |  | — |  |  |  | — |  |  |  | 1,526 |
Other |  |  | 288 |  |  |  | (86 | ) |  |  | 211 |
Change in valuation allowance |  |  | (462 | ) |  |  | 130 |  |  |  | (7,875 | )
Permanent difference |  |  | 148 |  |  |  | — |  |  |  | — |
Income tax provision (benefit) |  | $ | 2,215 |  |  | $ | 746 |  |  | $ | (1,404 | )
Components of Income Before Income Taxes | The domestic and foreign components of income before income taxes were:
|  | Year Ended |
|  | June 30, 2012 |  |  | July 2, 2011 |  |  | July 3, 2010 |
|  | (in thousands) |
Domestic |  | $ | 10,666 |  |  | $ | 4,048 |  |  | $ | 6,117 |
Foreign |  |  | 3,175 |  |  |  | 2,434 |  |  |  | 1,169 |
Income before income taxes |  | $ | 13,841 |  |  | $ | 6,482 |  |  | $ | 7,286 |
Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consist of the following at:
|  | June 30, 2012 |  |  | July 2, 2011 |
|  | (in thousands) |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | — |  |  | $ | 4,565 |
Tax credit carryforwards, net |  |  | 4,559 |  |  |  | 3,488 |
Foreign subsidiaries – future tax credits |  |  | 2,600 |  |  |  | 2,445 |
Inventory |  |  | 396 |  |  |  | 224 |
Accruals |  |  | 3,069 |  |  |  | 1,789 |
Other |  |  | 740 |  |  |  | 503 |
Deferred income tax assets |  |  | 11,364 |  |  |  | 13,014 |
Valuation allowance |  |  | (257 | ) |  |  | (720 | )
Deferred income tax assets, net of valuation allowance |  | $ | 11,107 |  |  | $ | 12,294 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Foreign subsidiaries – unremitted earnings |  |  | (3,138 | ) |  |  | (3,173 | )
Fixed assets |  |  | (1,157 | ) |  |  | (1,542 | )
Other |  |  | (2 | ) |  |  | (1,783 | )
Deferred income tax liabilities |  | $ | (4,297 | ) |  | $ | (6,498 | )
Net deferred income tax assets |  | $ | 6,810 |  |  | $ | 5,796 |
Balance sheet caption reported in: |  |  |  |  |  |  |  |
Current deferred tax asset |  | $ | 5,201 |  |  | $ | 3,900 |
Long-term deferred tax asset |  |  | 2,703 |  |  |  | 4,219 |
Long term deferred income tax liability |  |  | (1,094 | ) |  |  | (1,542 | )
Other long term obligations |  |  | — |  |  |  | (781 | )
Net deferred income tax asset |  | $ | 6,810 |  |  | $ | 5,796 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
Balance at July 3, 2010 |  | $ | — |
Additions in fiscal 2011 |  |  | 781 |
Balance at July 2, 2011 |  | $ | 781 |
Additions in fiscal 2012 |  |  | 2,222 |
Balance at June 30, 2012 |  | $ | 3,003 |

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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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