INCOME TAXES (Tables)

12 Months Ended

Jun. 01, 2013

Components of Income (Loss) Before Income Taxes

The components of income (loss) before income taxes are (in thousands):

	Fiscal Year Ended
	June 1, 2013			June 2, 2012		May 28, 2011
United States	$	(2,716	)	$	982	$	(947	)
Foreign		3,358			6,674		3,397
Income before income taxes	$	642		$	7,656	$	2,450

Reconciliation between Federal Statutory Tax Rate and Effective Tax Rate (Detail)

The provision for income taxes differs from income taxes computed at the federal statutory tax rate of 34% during fiscal 2013 and 2012 and 35% during fiscal 2011 as a result of the following items:

	Fiscal Year Ended
	June 1, 2013			June 2, 2012			May 28, 2011
Federal statutory rate		34.0	%		34.0	%		35.0	%
Effect of:
State income taxes, net of federal tax benefit		(14.5	)		0.4			(1.4	)
Foreign income inclusion		24.7			5.1			16.9
Foreign taxes at other rates		(44.6	)		(17.5	)		(13.0	)
Other permanent tax differences		3.2			1.2			(3.9	)
Tax reserves		(23.5	)		(1.6	)		(14.5	)
Additional U.S. tax on undistributed foreign earnings		33.8			(25.4	)		—
Net increase in valuation allowance for deferred tax assets		18.1			—			—
Additional benefit for carryback of current year federal loss		(6.1	)		—			—
Other		(0.2	)		(0.3	)		—
Effective tax rate		24.9	%		(4.4	)%		19.1	%

Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes consists of the following (in thousands):

	Fiscal Year Ended
	June 1, 2013			June 2, 2012			May 28, 2011
Current:
Federal	$	(974	)	$	950		$	(282	)
State		56			2			(39	)
Foreign		970			1,156			789
Total current	$	52		$	2,108		$	468
Deferred:
Federal	$	(213	)	$	(2,392	)	$	—
State		151			—			—
Foreign		170			(50	)		—
Total deferred	$	108		$	(2,442	)	$	—
Income tax provision (benefit)	$	160		$	(334	)	$	468

Significant Components of Deferred Tax Assets and Liabilities

Significant components are as follows (in thousands):

	Fiscal Year Ended
	June 1, 2013			June 2, 2012
Deferred tax assets:
NOL carryforwards - foreign and domestic	$	3,086		$	2,827
Inventory valuations		935			1,031
Goodwill		1,050			1,442
Severance reserve		200			151
Foreign capital loss		1,093			1,093
Other		2,638			2,656
Subtotal	$	9,002		$	9,200
Valuation allowance - foreign and domestic		(4,201	)		(3,787	)
Net deferred tax assets after valuation allowance	$	4,801		$	5,413
Deferred tax liabilities:
Accelerated depreciation	$	(309	)	$	(312	)
Tax on undistributed earnings		(6,820	)		(7,622	)
Other		(1,065	)		(799	)
Subtotal	$	(8,194	)	$	(8,733	)
Net Deferred tax assets (liabilities)	$	(3,393	)	$	(3,320	)
Supplemental disclosure of deferred tax assets (liabilities) information:
Domestic	$	(2,108	)	$	(2,458	)
Foreign	$	2,916		$	2,925

Activity Related to Unrecognized Tax Benefits

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

	Fiscal Year Ended
	June 1, 2013			June 2, 2012
Unrecognized tax benefits, beginning of period	$	1,750		$	2,034
Increase (decrease) due to currency translation		2			(36	)
Increase in positions taken in prior period		—			—
Decrease in positions taken in prior period		—			—
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		(40	)		(248	)
Unrecognized tax benefits, end of period	$	32		$	1,750

Unrecognized Tax Benefits for Continuing and Discontinued Operations

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

	Fiscal Year Ended
	June 1, 2013		June 2, 2012
Continuing operations	$	17	$	358
Discontinuing operations		15		1,392
	$	32	$	1,750