INCOME TAXES Income Taxes (Tables)

12 Months Ended

May 31, 2014

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

Income (loss) before income taxes includes the following components (in thousands):



	Fiscal Year Ended
	May 31, 2014			June 1, 2013			June 2, 2012
United States	$	(1,399	)	$	(2,716	)	$	982
Foreign	747			3,358			6,674
Income before income taxes	$	(652	)	$	642		$	7,656

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The differences between income taxes at the U.S. federal statutory income tax rate of 34% and the reported income tax provision (benefit) for fiscal 2014, 2013, and 2012 are summarized as follows:



	Fiscal Year Ended
	May 31, 2014		June 1, 2013		June 2, 2012
Federal statutory rate	34.0	%	34.0	%	34.0	%
Effect of:
State income taxes, net of federal tax benefit	14.1		(14.5	)	0.1
Foreign income inclusion	(10.2	)	24.7		5.1
Foreign taxes at other rates	(4.4	)	(44.6	)	(17.5	)
Permanent tax differences	(3.9	)	3.2		1.2
Intercompany items	(11.0	)	—		—
Compensation items	(12.7	)	—		—
Tax reserves	(7.2	)	(23.5	)	(1.6	)
Additional U.S. tax on undistributed foreign earnings	37.6		33.8		(25.4	)
Net increase in valuation allowance for deferred tax assets	(3.4	)	18.1		—
Additional benefit for carryback of current year federal loss	—		(6.1	)	—
Return to provision adjustments	15.3		—		—
Other	(1.2	)	(0.2	)	(0.3	)
Effective tax rate	47.0	%	24.9	%	(4.4	%)

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision (benefit) for income taxes for fiscal 2014, 2013, and 2012 consists of the following (in thousands):



	Fiscal Year Ended
	May 31, 2014			June 1, 2013			June 2, 2012
Current:
Federal	$	214		$	(974	)	$	950
State	1			56			2
Foreign	601			970			1,156
Total current	$	816		$	52		$	2,108
Deferred:
Federal	$	(585	)	$	(213	)	$	(2,392	)
State	(169		)	151			—
Foreign	(369		)	170			(50		)
Total deferred	$	(1,123	)	$	108		$	(2,442	)
Income tax provision (benefit)	$	(307	)	$	160		$	(334	)

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

Significant components are as follows (in thousands):



	Fiscal Year Ended
	May 31, 2014			June 1, 2013
Deferred tax assets:
NOL carryforwards - foreign and domestic	$	3,405		$	3,086
Inventory valuations	1,130			935
Goodwill	989			1,050
Severance reserve	367			200
Foreign capital loss	1,093			1,093
Other	2,753			2,638
Subtotal	$	9,737		$	9,002
Valuation allowance - foreign and domestic	(4,070		)	(4,201		)
Net deferred tax assets after valuation allowance	$	5,667		$	4,801
Deferred tax liabilities:
Accelerated depreciation	$	(317	)	$	(309	)
Tax on undistributed earnings	(7,031		)	(6,820		)
Other	(659		)	(1,065		)
Subtotal	$	(8,007	)	$	(8,194	)
Net Deferred tax assets (liabilities)	$	(2,340	)	$	(3,393	)
Supplemental disclosure of deferred tax assets (liabilities) information:
Domestic	$	(1,797	)	$	(2,108	)
Foreign	$	3,527		$	2,916

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

The following table summarizes the activity related to the unrecognized tax benefits (in thousands):



	Fiscal Year Ended
	May 31, 2014			June 1, 2013
Unrecognized tax benefits, beginning of period	$	32		$	1,750
Increase (decrease) due to currency translation	7			2
Increase in positions taken in prior period	163			—
Increase in positions taken in current period	—			99
Decrease in positions due to settlements	—			(1,779		)
Decrease related to the expiration of statute of limitations	(41		)	(40		)
Unrecognized tax benefits, end of period	$	161		$	32

Unrecognized Tax Benefits Table [Text Block]

Unrecognized tax benefits for continuing and discontinued operations are as follows (in thousands):



	Fiscal Year Ended
	May 31, 2014		June 1, 2013
Continuing operations	$	66	$	17
Discontinuing operations	95		15
	$	161	$	32