Income Taxes (Tables)

12 Months Ended

Jun. 01, 2019

Income Tax Disclosure [Abstract]

Schedule of Income Before Income Tax, Domestic and Foreign

(Loss) income from continuing operations before income taxes included the following components (in thousands): 

	Fiscal Year Ended
	June 1, 2019			June 2, 2018			May 27, 2017
United States	$	(9,971	)	$	(211	)	$	(8,150	)
Foreign		3,660			4,071			2,034
(Loss) income before income taxes	$	(6,311	)	$	3,860		$	(6,116	)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for fiscal 2019, fiscal 2018 and fiscal 2017 consisted of the following (in thousands): 

	Fiscal Year Ended
	June 1, 2019			June 2, 2018			May 27, 2017
Current:
Federal	$	33		$	—		$	(117	)
State		3			(12	)		3
Foreign		652			1,220			1,035
Total current	$	688		$	1,208		$	921
Deferred:
Federal	$	(104	)	$	124		$	—
State		—			—			—
Foreign		433			202			(109	)
Total deferred	$	329		$	326		$	(109	)
Income tax provision	$	1,017		$	1,534		$	812

Schedule of Effective Income Tax Rate Reconciliation

The differences between income taxes at the U.S. federal statutory income tax rate of 21.0% for fiscal 2019, 29.2% for fiscal 2018 and 34.0% for fiscal 2017 and the reported income tax provision for fiscal 2019, fiscal 2018 and fiscal 2017 are summarized as follows:

	Fiscal Year Ended
	June 1, 2019			June 2, 2018			May 27, 2017
Federal statutory rate		21.0	%		29.2	%		34.0	%
Effect of:
State income taxes, net of federal tax benefit		5.4			0.3			4.8
Deemed repatriation tax		—			(50.0	)		—
Foreign income inclusion		—			—			(20.7	)
Foreign taxes at other rates		(4.1	)		(0.1	)		1.0
Permanent tax differences		(16.1	)		6.7			(0.5	)
Deferred remeasurement		—			45.1			—
Tax reserves		—			3.6			0.9
Additional U.S. tax on undistributed foreign earnings		—			(12.5	)		15.8
Change in valuation allowance for deferred tax assets		(22.8	)		15.1			(46.6	)
Return to provision adjustments		(0.5	)		0.1			(2.0	)
Closure of foreign audits		—			2.2			—
Other		1.0			—			—
Effective tax rate		(16.1	)%		39.7	%		(13.3	)%

Schedule of Deferred Tax Assets and Liabilities

Our deferred tax assets and liabilities reflect continuing operations as of June 1, 2019 and June 2, 2018. Significant components were as follows (in thousands):

	Fiscal Year Ended
	June 1, 2019			June 2, 2018
Deferred tax assets:
NOL carryforwards - foreign and domestic	$	7,458		$	7,883
Inventory valuations		1,179			978
Goodwill		1,578		294
Foreign tax credits		1,782			465
Severance reserve		188		119
Foreign capital loss		1,129			1,143
Other		1,737			1,632
Subtotal	$	15,051		$	12,514
Valuation allowance - foreign and domestic		(11,706	)		(9,148	)
Net deferred tax assets after valuation allowance	$	3,345		$	3,366
Deferred tax liabilities:
Accelerated depreciation	$	(2,908	)	$	(2,474	)
Tax on undistributed earnings		(141	)		(274	)
Other	21			28
Subtotal	$	(3,028	)	$	(2,720	)
Net deferred tax assets	$	317		$	646
Supplemental disclosure of net deferred tax assets,    excluding valuation allowance:
Domestic	$	10,194		$	7,394
Foreign	$	1,829		$	2,401
Total	$	12,023		$	9,795

Schedule of Unrecognized Tax Benefits

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

	Fiscal Year Ended
	June 1, 2019			June 2, 2018
Unrecognized tax benefits, beginning of period	$	138		$	1,883
Increase in positions taken in prior period		—			138
Decrease in positions due to settlements		—			(1,883	)
Currency translation adjustment		(8	)		—
Unrecognized tax benefits, end of period	$	130		$	138