INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Components of loss before income taxes

The components of loss from continuing operations before income taxes are as follows:

	Fiscal Years
	2023		2022		2021
	(Dollars in thousands)
Loss before income taxes
U.S.	$	(10,204)	$	(41,231)	$	(143,104)
International	(1,794)		(3,211)		34,470
	$	(11,998)	$	(44,442)	$	(108,634)

Benefit for income taxes

The (benefit) provision for income taxes consists of:

	Fiscal Years
	2023		2022		2021
	(Dollars in thousands)
Current:
U.S.	$	(219)	$	(535)	$	(620)
International	(428)		(425)		(1,421)
Deferred:
U.S.	(270)		3,130		(3,701)
International	262		(153)		314
	$	(655)	$	2,017	$	(5,428)

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

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

	Fiscal Years
	2023		2022		2021
U.S. statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal income tax benefit	(2.7)		1.4		7.9
Valuation allowance (1)	(12.9)		(6.6)		(61.5)
Foreign income taxes at other than U.S. rates	(0.2)		3.0		9.4
Uncertain tax positions	6.7		(17.9)		0.2
Stock-based compensation	(2.7)		(2.8)		(0.7)
Loss on investment in Luxembourg	—		—		29.3
Deferred tax rate remeasurement	(3.6)		—		—
Other, net (2)	(0.1)		(2.6)		(0.6)
Effective tax rate	5.5	%	(4.5)	%	5.0	%

_______________________________________________________________________________

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

(2)The (0.1)% of other, net in fiscal year 2023 includes the rate impact of the federal provision to return true-up, tax attribute expirations and miscellaneous items of 1.3%, (1.1)% and (0.3)%, respectively. The (2.6)% of other, net in fiscal year 2022 includes the rate impact of the federal provision to return true-up and miscellaneous items of (2.0)% and (0.6)%, respectively. The (0.6)% of other, net in fiscal year 2021 does not include the rate impact of any items in excess of 5% of computed tax.

Components of the net deferred tax assets and liabilities

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

	June 30,
	2023		2022
	(Dollars in thousands)
Deferred tax assets:
Payroll and payroll related costs	$	5,041	$	5,267
Net operating loss carryforwards	154,514		153,190
Tax credit carryforwards	37,515		37,664
Capital loss carryforwards	5,845		5,338
Deferred franchise fees	7,018		8,694
Operating lease liabilities	92,666		124,905
Other (1)	18,826		17,542
Subtotal	321,425		352,600
Valuation allowance	(202,185)		(201,731)
Total deferred tax assets	$	119,240	$	150,869
Deferred tax liabilities:
Goodwill and intangibles	$	(35,001)	$	(33,466)
Operating lease assets	(91,921)		(123,333)
Other	(3,254)		(5,049)
Total deferred tax liabilities	(130,176)		(161,848)
Net deferred tax liability	$	(10,936)	$	(10,979)

_______________________________________________________________________________(1)The $18.8 million of Other in fiscal year 2023 includes $3.4 million of deferred tax assets with a corresponding valuation allowance of the same amount related to discontinued operations. The $17.5 million of Other in fiscal year 2022 includes $5.3 million of deferred tax assets with a corresponding valuation allowance of the same amount related to discontinued operations.

Unrecognized tax benefits

A rollforward of the unrecognized tax benefits is as follows:

	Fiscal Years
	2023		2022
	(Dollars in thousands)
Balance at beginning of period	$	22,173	$	13,858
Additions based on tax positions related to the current year	10		8,636
(Reductions) additions based on tax positions of prior years	(663)		81
Reductions on tax positions related to the expiration of the statute of limitations	(127)		(402)
Balance at end of period	$	21,393	$	22,173