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INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Components of income (loss) before income taxes
The components of (loss) income before income taxes are as follows:
 
 
Fiscal Years
 
 
2017
 
2016
 
2015
 
 
(Dollars in thousands)
(Loss) income before income taxes:
 
 
 
 
 
 
U.S. 
 
$
(7,759
)
 
$
12,481

 
$
(6,630
)
International
 
924

 
35

 
1,652

 
 
$
(6,835
)
 
$
12,516

 
$
(4,978
)
Provision (benefit) for income taxes
The provision for income taxes consists of:
 
 
Fiscal Years
 
 
2017
 
2016
 
2015
 
 
(Dollars in thousands)
Current:
 
 
 
 
 
 
U.S. 
 
$
994

 
$
819

 
$
1,670

International
 
268

 
1,207

 
1,781

Deferred:
 
 
 
 
 
 
U.S. 
 
7,901

 
6,997

 
9,439

International
 
61

 
26

 
1,715

 
 
$
9,224


$
9,049


$
14,605
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
 
 
2017
 
2016
 
2015
U.S. statutory rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes, net of federal income tax benefit
 
(2.2
)
 
5.4

 
(3.7
)
Valuation allowance (1)
 
(168.0
)
 
66.5

 
(362.8
)
Foreign income taxes at other than U.S. rates
 
(2.0
)
 
2.5

 
(5.3
)
Officer life insurance
 
6.8

 
(7.6
)
 
9.6

Work Opportunity and Welfare-to-Work Tax Credits
 
23.2

 
(24.7
)
 
53.3

Expiration of capital loss carryforward
 
—

 
—

 
(9.5
)
Other, net (2)
 
(27.8
)
 
(4.8
)
 
(10.0
)
 
 
(135.0
)%

72.3
 %

(293.4
)%

_______________________________________________________________________________
(1)     See Note 1 to the Consolidated Financial Statements.
(2)     The (27.8)% of Other, net in fiscal year 2017 includes the rate impact of meals and entertainment expense disallowance, adjustments resulting from charitable contributions, employee share-based compensation payments, and miscellaneous items of (5.5)%, (8.6)%, (21.8)%, and 8.1%, respectively. Miscellaneous items do not include any items in excess of 5% of computed tax.
The 4.8% of Other, net in fiscal year 2016 does not include the rate impact of any items in excess of 5% of computed tax.
The (10.0)% of Other, net in fiscal year 2015 includes the rate impact of meals and entertainment expense disallowance and miscellaneous items of (6.0)% and (4.0)%, respectively.
Components of the net deferred tax assets and liabilities
The components of the net deferred tax assets and liabilities are as follows:
 
 
June 30,
 
 
2017
 
2016
 
 
(Dollars in thousands)
Deferred tax assets:
 
 
 
 
Deferred rent
 
$
13,216

 
$
14,542

Payroll and payroll related costs
 
24,666

 
27,066

Net operating loss carryforwards
 
29,171

 
22,433

Tax credit carryforwards
 
32,852

 
30,386

Inventories
 
1,914

 
2,369

Fixed assets
 
7,982

 
82

Accrued advertising
 
2,723

 
3,076

Insurance
 
4,153

 
4,285

Other
 
7,494

 
7,809

Subtotal
 
$
124,171


$
112,048

Valuation allowance
 
(120,903
)
 
(110,046
)
Total deferred tax assets
 
$
3,268


$
2,002

Deferred tax liabilities:
 
 
 
 
Goodwill and intangibles
 
$
(103,889
)
 
$
(95,451
)
Other
 
(7,498
)
 
(6,720
)
Total deferred tax liabilities
 
$
(111,387
)
 
$
(102,171
)
Net deferred tax liability
 
$
(108,119
)
 
$
(100,169
)
Unrecognized tax benefits
A rollforward of the unrecognized tax benefits is as follows:
 
 
Fiscal Years
 
 
2017
 
2016
 
2015
 
 
(Dollars in thousands)
Balance at beginning of period
 
$
1,357

 
$
1,496

 
$
1,468

Additions based on tax positions related to the current year
 
259

 
138

 
37

Additions based on tax positions of prior years
 
80

 
170

 
352

Reductions on tax positions related to the expiration of the statute of limitations
 
(179
)
 
(207
)
 
(361
)
Settlements
 
(129
)
 
(240
)
 
—

Balance at end of period
 
$
1,388

 
$
1,357

 
$
1,496