INCOME TAXES (Tables)

12 Months Ended

Jun. 24, 2020

Schedule of Income before Income Tax, Domestic and Foreign

Income before provision for income taxes consists of the following:



	Fiscal Years Ended
	June 24, 2020			June 26, 2019		June 27, 2018
Domestic	$	5.0		$	168.1	$	182.1
Foreign	(0.1		)	3.7		(11.9		)
Income before income taxes	$	4.9		$	171.8	$	170.2

Provision For Income Taxes and Effective Tax Rate

The provision for income taxes and effective tax rate consists of the following:



	Fiscal Years Ended
	June 24, 2020			June 26, 2019			June 27, 2018
Current income tax (benefit) expenses:
Federal	$	(32.9	)	$	63.3		$	28.7
State	4.8			28.8			12.2
Foreign	0.0			0.6			0.0
Total current income tax (benefit) expenses	(28.1		)	92.7			40.9
Deferred income tax (benefit) expenses:
Federal	8.8			(58.5		)	6.6
State	(0.2		)	(18.0		)	0.1
Foreign	0.0			0.7			(3.3		)
Total deferred income tax (benefit) expenses	8.6			(75.8		)	3.4
Provision (benefit) for income taxes	$	(19.5	)	$	16.9		$	44.3

Effective tax rate	(398.0		)%	9.8		%	26.0		%

Reconciliation Between Reported Provision for Income Taxes And Amount Computed By Statutory Federal Income Tax Rate

A reconciliation between the reported provision for income taxes and the amount computed by applying the statutory Federal income tax rate to Provision (benefit) for income taxes is as follows:



	Fiscal Years Ended
	June 24, 2020			June 26, 2019			June 27, 2018
Income tax expense at statutory rate	$	1.0		$	36.1		$	47.8
FICA and other tax credits	(24.8		)	(28.2		)	(22.6		)
State income taxes, net of Federal benefit	3.6			8.5			8.7
Tax reform impact	—			—			8.2
Stock based compensation tax shortfall	0.5			0.5			1.1
Other	0.2			0.0			1.1
Provision (benefit) for income taxes	$	(19.5	)	$	16.9		$	44.3

Deferred Income Tax Assets And Liabilities

The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows:



	June 24, 2020			June 26, 2019
Deferred income tax assets:
Lease liabilities	$	313.7		$	27.5
Gift cards	13.7			12.3
Insurance reserves	12.2			11.5
Stock-based compensation	11.0			9.9
Federal credit carryover	7.3			9.0
Net operating losses	3.2			3.7
State credit carryover	2.8			2.6
Restructure charges and impairments	1.4			3.0
Deferred gain on sale leaseback transactions	—			68.6
Other, net	10.3			11.2
Less: Valuation allowance	(5.6		)	(5.5		)
Total deferred income tax assets	370.0			153.8
Deferred income tax liabilities:
Lease assets	275.5			2.2
Goodwill and other amortization	21.6			20.6
Depreciation and capitalized interest on property and equipment	19.8			4.3
Prepaid expenses	14.4			13.6
Other, net	0.5			1.1
Total deferred income tax liabilities	331.8			41.8
Deferred income taxes, net	$	38.2		$	112.0

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits are as follows:



	June 24, 2020			June 26, 2019
Balance at beginning of year	$	3.5		$	3.9
Additions based on tax positions related to the current year	0.3			0.4
Additions based on tax positions related to prior years	—			—
Settlements with tax authorities	0.0			(0.1		)
Expiration of statute of limitations	(0.8		)	(0.7		)
Balance at end of year	$	3.0		$	3.5