Income Taxes (Tables)

12 Months Ended

May 29, 2022

Income Tax Disclosure [Abstract]

Schedule of Benefits and Provisions for Income Taxes

The (benefit) provision for income taxes from continuing operations consisted of the following:

(in thousands)	Year Ended
	May 29, 2022		May 30, 2021		May 31, 2020
Current:
Federal	$	—	$	(38)	$	(7,723)
State	23		74		38
Foreign	356		56		56
Total	379		92		(7,629)
Deferred:
Federal	(5,562)		(1,536)		(983)
State	(656)		(459)		(162)
Total	(6,218)		(1,995)		(1,145)
Income tax benefit	$	(5,839)	$	(1,903)	$	(8,774)

Schedule of Actual Provisions for Income Taxes

The actual (benefit) provision for income taxes from continuing operations differs from the statutory U.S. federal income tax rate as follows:

(in thousands)	Year Ended
	May 29, 2022		May 30, 2021		May 31, 2020
Tax at U.S. statutory rate (1)	$	(10,904)	$	(2,409)	$	(6,435)
State income taxes, net of federal benefit	(1,639)		(304)		(1,048)
Tax reform/CARES Act	—		—		(2,770)
Change in valuation allowance	6,040		2,667		2,014
Tax credit carryforwards	(436)		(606)		(613)
Other compensation-related activity	234		249		334
Impairment of goodwill	2,347		—		647
Foreign rate differential	(496)		(1,414)		(986)
Other	(985)		(86)		83
Income tax benefit	$	(5,839)	$	(1,903)	$	(8,774)

(1) Statutory rate was 21.0% for fiscal year 2022, 2021 and 2020.

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities reported in the accompanying Consolidated Balance Sheets consisted of the following:

(in thousands)	Year Ended
	May 29, 2022		May 30, 2021
Deferred tax assets:
Accruals and reserves	$	867	$	3,366
Net operating loss carryforwards	28,558		21,916
Stock-based compensation	880		1,123
Research and AMT credit carryforwards	5,611		5,150
Lease liability	2,874		5,902
Limitations on business interest expense	4,245		2,411
Goodwill and other indefinite life intangibles	1,426		—
Other	750		927
Gross deferred tax assets	45,211		40,795
Valuation allowance	(31,848)		(10,460)
Net deferred tax assets	13,363		30,335
Deferred tax liabilities:
Depreciation and amortization	(11,495)		(16,600)
Goodwill and other indefinite life intangibles	—		(13,406)
Basis difference in investment in non-public company	—		(1,382)
Right of use asset	(2,100)		(5,087)
Deferred tax liabilities	(13,595)		(36,475)
Net deferred tax liabilities	$	(232)	$	(6,140)

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in thousands)	Year Ended
	May 29, 2022		May 30, 2021		May 31, 2020
Unrecognized tax benefits – beginning of the period	$	942	$	827	$	616
Gross increases – tax positions in prior period	—		—		101
Gross decreases – tax positions in prior period	—		—		(11)
Gross increases – current-period tax positions	83		115		121
Unrecognized tax benefits – end of the period	$	1,025	$	942	$	827