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INCOME TAXES (Tables) | 12 Months Ended
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Jul. 03, 2021
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | Income tax benefit consists of the following:
| Fiscal Year Ended
| July 3, 2021 |  | June 27, 2020 |  | June 29, 2019
| (in thousands)
Current income tax benefit: |  |  |  |  |
United States | $ | 1,416 |  |  | $ | 365 |  |  | $ | (537) |
Foreign | 1,098 |  |  | 154 |  |  | 895 |
| 2,514 |  |  | 519 |  |  | 358 |
Deferred income tax benefit: |  |  |  |  |
United States | (858) |  |  | (1,850) |  |  | (910) |
Foreign | (84) |  |  | 892 |  |  | (206) |
| (942) |  |  | (958) |  |  | (1,116) |
Total income tax provision (benefit) | $ | 1,572 |  |  | $ | (439) |  |  | $ | (758) |
Effective Tax Rate Reconciliation | The Company’s effective tax rate differs from the federal tax rate as follows:
| Fiscal Year Ended
| July 3, 2021 |  | June 27, 2020 |  | June 29, 2019
| (in thousands)
Federal income tax provision (benefit) at statutory rates | $ | 1,242 |  |  | $ | 907 |  |  | $ | (1,836) |
State income taxes, net of federal tax effect | 76 |  |  | 90 |  |  | (158) |
Foreign tax rate differences | (36) |  |  | 336 |  |  | 251 |
Tax rate change | 184 |  |  | — |  |  | — |
Provisional transition tax on accumulated foreign earnings | — |  |  | — |  |  | (384) |
Effect of income tax credits | (413) |  |  | (310) |  |  | (861) |
Previously unrecognized tax benefits | (296) |  |  | (1,345) |  |  | — |
Effect of repatriation of foreign earnings, net | (61) |  |  | — |  |  | (42) |
Goodwill write-off | — |  |  | — |  |  | 1,726 |
Global Intangible Low-Taxed Income (GILTI) tax | 34 |  |  | — |  |  | 150 |
Provision to return reconciliation | 50 |  |  | (241) |  |  | 630 |
Equity compensation shortfall | 572 |  |  | — |  |  | — |
Other | 220 |  |  | 124 |  |  | (234) |
Income tax provision (benefit) | $ | 1,572 |  |  | $ | (439) |  |  | $ | (758) |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of income (loss) before income taxes were:
| Fiscal Year Ended
| July 3, 2021 |  | June 27, 2020 |  | June 29, 2019
| (in thousands)
Domestic | $ | 2,839 |  |  | $ | 1,142 |  |  | $ | (12,220) |
Foreign | 3,074 |  |  | 3,177 |  |  | 3,480 |
Income (loss) before income taxes | $ | 5,913 |  |  | $ | 4,319 |  |  | $ | (8,740) |
Schedule of Deferred Tax Assets and Liabilities | Deferred income tax assets and liabilities consist of the following at:
| July 3, 2021 |  | June 27, 2020
| (in thousands)
Deferred tax assets: |  |  |
Net operating loss | $ | 465 |  |  | $ | 184 |
Tax credit carryforwards, net | 3,581 |  |  | 5,961 |
Inventory | 1,190 |  |  | 1,426 |
Identifiable intangibles | 432 |  |  | 493 |
Accruals | 3,132 |  |  | 2,847 |
Mart-to-market adjustments | — |  |  | 415 |
ASC 606 deferred costs | 4,670 |  |  | 1,943 |
Lease liabilities | 2,909 |  |  | 3,201 |
Other | 385 |  |  | 212 |
Deferred income tax assets | $ | 16,764 |  |  | $ | 16,682 |
Deferred tax liabilities: |  |  |
Accrued withholding tax - unremitted earnings | (754) |  |  | (820) |
Fixed assets | (794) |  |  | (566) |
Right-of-use assets | (2,930) |  |  | (3,290) |
Mart-to-market adjustments | (816) |  |  | — |
ASC 606 accelerated revenue | (672) |  |  | (1,344) |
Other | (1,142) |  |  | (718) |
Deferred income tax liabilities | $ | (7,108) |  |  | $ | (6,738) |
Net deferred income tax assets | $ | 9,656 |  |  | $ | 9,944 |
Balance sheet caption reported in: |  |  |
Long-term deferred income tax asset | $ | 9,656 |  |  | $ | 10,178 |
Long-term deferred income tax liability | — |  |  | (234) |
Net deferred income tax asset | $ | 9,656 |  |  | $ | 9,944 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| Fiscal Year Ended
| July 3, 2021 |  | June 27, 2020 |  | June 29, 2019
| (in thousands)
Beginning Balance | $ | 2,863 |  |  | $ | 4,099 |  |  | $ | 4,011 |
Additions based on tax positions related to the current year | 193 |  |  | 109 |  |  | 88 |
Adjustment to prior year tax positions | 2,102 |  |  | — |  |  | — |
Lapse of statute of limitations | (295) |  |  | (1,345) |  |  | — |
Ending Balance | $ | 4,863 |  |  | $ | 2,863 |  |  | $ | 4,099 |

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