INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Components of income (loss) before income taxes

The components of (loss) income before income taxes are as follows:

	Fiscal Years
	2014			2013			2012
	(Dollars in thousands)
(Loss) income before income taxes:
U.S.	$	(51,866	)	$	(25,177	)	$	(35,430	)
International	(2,462		)	35,275			10,116
	$	(54,328	)	$	10,098		$	(25,314	)

(Benefit) provision for income taxes

The provision (benefit) for income taxes consists of:

	Fiscal Years
	2014		2013			2012
	(Dollars in thousands)
Current:
U.S.	$	1,460	$	(21,053	)	$	(1,095	)
International	890		707			2,261
Deferred:
U.S.	67,992		10,405			(5,519		)
International	787		(83		)	(77		)
	$	71,129	$	(10,024	)	$	(4,430	)

Provision for income taxes, reconciliation to applicable U.S. statutory rate

The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory rate to earnings (loss) before income taxes, as a result of the following:

	Fiscal Years
	2014		2013		2012
U.S. statutory rate (benefit)	(35.0	)%	35.0	%	(35.0	)%
State income taxes, net of federal income tax benefit	(0.2	)	3.6		3.5
Valuation allowance (1)	160.8		—		—
Tax effect of goodwill impairment	11.5		—		47.7
Foreign income taxes at other than U.S. rates	1.4		4.1		(0.5	)
Tax effect of foreign currency translation gain	—		(107.0	)	—
Work Opportunity and Welfare-to-Work Tax Credits	(5.3	)	(42.8	)	(19.4	)
Other, net	(2.3	)	7.8		(13.8	)
	130.9	%	(99.3	)%	(17.5	)%

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(1)     See Note 1 to the Consolidated Financial Statements.

Components of the net deferred tax assets and liabilities

A summary of the activity for the deferred tax asset valuation allowance follows:

	Fiscal Year 2014
	(Dollars in thousands)
Balance, June 30, 2013	$	—
Establishment of valuation allowance against U.S. & U.K. deferred tax assets	84,391
Changes to deferred tax asset valuation allowance	(469		)
Balance, June 30, 2014	$	83,922

The components of the net deferred tax assets and liabilities are as follows:

	June 30,
	2014			2013
	(Dollars in thousands)
Deferred tax assets:
Deferred rent	$	12,625		$	12,953
Payroll and payroll related costs	24,857			34,073
Net operating loss carryforwards	17,180			2,484
Tax credit carryforwards	20,134			4,366
Inventories	2,926			7,920
Allowance for doubtful accounts/notes	216			7,004
Insurance	6,195			6,106
Other	8,815			14,353
Subtotal	$	92,948		$	89,259
Valuation allowance	(83,922		)	—
Total deferred tax assets	$	9,026		$	89,259
Deferred tax liabilities:
Depreciation	$	(8,086	)	$	(20,684	)
Amortization of intangibles	(77,650		)	(72,635		)
Other	(5,689		)	(7,206		)
Total deferred tax liabilities	$	(91,425	)	$	(100,525	)
Net deferred tax (liability) asset	$	(82,399	)	$	(11,266	)

Unrecognized tax benefits

A rollforward of the unrecognized tax benefits is as follows:

	Fiscal Years
	2014			2013			2012
	(Dollars in thousands)
Balance at beginning of period	$	10,015		$	4,381		$	13,493
(Reductions)/additions based on tax positions related to the current year	(2,114		)	44			482
(Reductions)/additions based on tax positions of prior years	(505		)	7,132			(7		)
Reductions on tax positions related to the expiration of the statute of limitations	(994		)	(1,403		)	(1,571		)
Settlements	(4,934		)	(139		)	(8,016		)
Balance at end of period	$	1,468		$	10,015		$	4,381