INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Components of income (loss) before income taxes

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

	Fiscal Years
	2016		2015			2014
	(Dollars in thousands)
Income (loss) before income taxes:
U.S.	$	12,481	$	(6,630	)	$	(52,815	)
International	35		1,652			(2,481		)
	$	12,516	$	(4,978	)	$	(55,296	)

Provision (benefit) for income taxes

The provision for income taxes consists of:

	Fiscal Years
	2016		2015		2014
	(Dollars in thousands)
Current:
U.S.	$	819	$	1,670	$	1,430
International	1,207		1,781		890
Deferred:
U.S.	6,997		9,439		69,854
International	26		1,715		781
	$	9,049	$	14,605	$	72,955

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
	2016		2015		2014
U.S. statutory rate (benefit)	35.0	%	(35.0	)%	(35.0	)%
State income taxes, net of federal income tax benefit	5.4		3.7		(0.3	)
Valuation allowance (1)	66.5		362.8		161.9
Tax effect of goodwill impairment	—		—		11.3
Foreign income taxes at other than U.S. rates	2.5		5.3		1.4
Officer life insurance	(7.6	)	(9.6	)	(1.3	)
Work Opportunity and Welfare-to-Work Tax Credits	(24.7	)	(53.3	)	(5.2	)
Expiration of capital loss carryforward	—		9.5		—
Other, net	(4.8	)	10.0		(0.9	)
	72.3	%	293.4	%	131.9	%

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

Components of the net deferred tax assets and liabilities

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

	June 30,
	2016			2015
	(Dollars in thousands)
Deferred tax assets:
Deferred rent	$	14,542		$	14,561
Payroll and payroll related costs	27,066			27,646
Net operating loss carryforwards	22,433			17,946
Tax credit carryforwards	30,386			25,296
Inventories	2,369			2,684
Accrued advertising	3,076			4,853
Insurance	4,285			6,779
Other	7,891			6,329
Subtotal	$	112,048		$	106,094
Valuation allowance	(110,046		)	(103,240		)
Total deferred tax assets	$	2,002		$	2,854
Deferred tax liabilities:
Fixed assets	$	—		$	(2,372	)
Goodwill and intangibles	(95,451		)	(87,383		)
Other	(6,720		)	(6,309		)
Total deferred tax liabilities	$	(102,171	)	$	(96,064	)
Net deferred tax liability	$	(100,169	)	$	(93,210	)

Unrecognized tax benefits

A rollforward of the unrecognized tax benefits is as follows:

	Fiscal Years
	2016			2015			2014
	(Dollars in thousands)
Balance at beginning of period	$	1,496		$	1,468		$	10,015
Additions (reductions) based on tax positions related to the current year	138			37			(2,114		)
Additions (reductions) based on tax positions of prior years	170			352			(505		)
Reductions on tax positions related to the expiration of the statute of limitations	(207		)	(361		)	(994		)
Settlements	(240		)	—			(4,934		)
Balance at end of period	$	1,357		$	1,496		$	1,468