INCOME TAXES (Tables)

12 Months Ended

Jun. 28, 2023

Income before income taxes consists of the following:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Domestic	$	87.8	$	113.5	$	146.7
Foreign	3.0		1.7		(1.5)
Income before income taxes	$	90.8	$	115.2	$	145.2

(Benefit) Provision For Income Taxes and Effective Tax Rate

The (Benefit) Provision for income taxes and effective tax rate consists of the following:


	Fiscal Years Ended
	June 28, 2023			June 29, 2022			June 30, 2021
Current income tax (benefit) expenses:
Federal	$	12.2		$	5.8		$	11.6
State	6.8			3.7			14.4
Foreign	0.2			(0.3)			0.0
Total current income tax expenses	19.2			9.2			26.0
Deferred income tax (benefit) expenses:
Federal	(29.5)			(15.7)			(9.4)
State	(2.0)			3.7			(3.0)
Foreign	0.5			0.4			0.0
Total deferred income tax (benefit) expenses	(31.0)			(11.6)			(12.4)
(Benefit) Provision for income taxes	$	(11.8)		$	(2.4)		$	13.6

Effective tax rate	(13.0)		%	(2.1)		%	9.4		%

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

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


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Income tax expense at statutory rate	$	19.0	$	24.2	$	30.5
FICA and other tax credits	(34.6)		(32.9)		(24.7)
State income taxes, net of Federal benefit	4.7		6.2		7.8
Stock based compensation tax shortfall (windfall)	0.8		(0.7)		(2.3)
Other	(1.7)		0.8		2.3
(Benefit) Provision for income taxes	$	(11.8)	$	(2.4)	$	13.6

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 28, 2023		June 29, 2022
Deferred income tax assets:
Lease liabilities	$	451.5	$	337.3
Gift cards	9.2		9.9
Insurance reserves	13.7		11.6
Stock-based compensation	9.5		11.6
Federal credit carryover	59.5		41.1

Net operating losses	4.2		3.7
State credit carryover	2.1		2.5
Restructure charges and impairments	2.1		2.3
Payroll tax deferral	—		6.8
Other, net	9.7		8.0
Less: Valuation allowance	(4.3)		(5.8)
Total deferred income tax assets	557.2		429.0
Deferred income tax liabilities:
Lease assets	421.9		307.1
Goodwill and other amortization	23.2		23.3
Depreciation and capitalized interest on property and equipment	0.7		17.8
Prepaid expenses	17.3		16.9
Other, net	0.7		1.4
Total deferred income tax liabilities	463.8		366.5
Deferred income taxes, net	$	93.4	$	62.5

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits are as follows:


	June 28, 2023		June 29, 2022
Balance at beginning of year	$	3.7	$	4.3
Additions based on tax positions related to the current year	0.4		0.3
Additions (Decreases) based on tax positions related to prior years	0.1		(0.1)
Settlements with tax authorities	—		(0.8)
Expiration of statute of limitations	(1.4)		0.0
Balance at end of year	$	2.8	$	3.7