INCOME TAXES (Tables)

12 Months Ended

May 27, 2017

Income Tax Disclosure [Abstract]

Schedule of income before income tax, domestic and foreign

Loss from continuing operations before income taxes includes the following components (in thousands): 

	Fiscal Year Ended
	May 27,  2017			May 28,  2016			May 30,  2015
United States	$	(8,150	)	$	(7,274	)	$	(9,287	)
Foreign		2,034			1,054			2,293
Loss before income taxes	$	(6,116	)	$	(6,220	)	$	(6,994	)

Schedule of components of income tax expense (benefit)

The provision (benefit) for income taxes for fiscal 2017, 2016, and 2015 consists of the following (in thousands): 

	Fiscal Year Ended
	May 27,  2017			May 28,  2016		May 30,  2015
Current:
Federal	$	(117	)	$	—	$	(326	)
State		3			17		14
Foreign		1,035			441		191
Total current	$	921		$	458	$	(121	)
Deferred:
Federal	$	—		$	—	$	(1,964	)
State		—			—		530
Foreign		(109	)		88		89
Total deferred	$	(109	)	$	88	$	(1,345	)
Income tax provision (benefit)	$	812		$	546	$	(1,466	)

Schedule of effective income tax rate reconciliation

The differences between income taxes at the U.S. federal statutory income tax rate of 34% and the reported income tax provision (benefit) for fiscal 2017, 2016, and 2015 are summarized as follows:

	Fiscal Year Ended
	May 27,  2017			May 28, 2016			May 30,  2015
Federal statutory rate		34	%		34	%		34	%
Effect of:
State income taxes, net of federal tax benefit		4.8			4.2			5.3
Foreign income inclusion		(20.7	)		(0.4	)		(1.6	)
Foreign taxes at other rates		1.0			0.6			4.4
Permanent tax differences		(0.5	)		(0.8	)		(0.5	)
Intercompany items		—			—			2.2
Tax reserves		0.9			(6.0	)		0.8
Additional U.S. tax on undistributed foreign earnings		15.8			(32.7	)		(0.5	)
Net increase in valuation allowance for deferred tax assets		(46.6	)		(11.4	)		(27.3	)
Return to provision adjustments		(2.0	)		3.9			4.0
Other		—			(0.2	)		0.1
Effective tax rate		(13.3	)%		(8.8	)%		20.9	%

Schedule of deferred tax assets and liabilities

Our deferred tax assets and liabilities reflect continuing operations as of May 27, 2017 and May 28, 2016. Significant components are as follows (in thousands):

	Fiscal Year Ended
	May 27,  2017			May 28,  2016
Deferred tax assets:
NOL carryforwards - foreign and domestic	$	7,870		$	9,089
Inventory valuations		1,141			1,141
Goodwill		325			798
Foreign tax credits		3,808			304
Severance reserve		227			34
Foreign capital loss		1,142			1,079
Other		2,048			2,167
Subtotal	$	16,561		$	14,612
Valuation allowance - foreign and domestic		(8,557	)		(5,871	)
Net deferred tax assets after valuation allowance	$	8,004		$	8,741
Deferred tax liabilities:
Accelerated depreciation	$	(1,356	)	$	(973	)
Tax on undistributed foreign earnings		(5,738	)		(6,702	)
Other		35			(175	)
Subtotal	$	(7,059	)	$	(7,850	)
Net deferred tax assets	$	945		$	891
Supplemental disclosure of deferred tax assets :
Domestic	$	6,937		$	4,190
Foreign	$	2,565		$	2,549
Total	$	9,502		$	6,739

Schedule of unrecognized tax benefits

The following table summarizes the activity related to the unrecognized tax benefits (in thousands):

	Fiscal Year Ended
	May 27,  2017			May 28,  2016
Unrecognized tax benefits, beginning of period	$	2,000		$	2,000
Increase in positions taken in prior period		75			299
Decrease in positions due to settlements		(75	)		—
Decrease related to the expiration of statute of limitations		(117	)		(299	)
Unrecognized tax benefits, end of period	$	1,883		$	2,000

Unrecognized tax benefits for continuing and discontinued operations are as follows (in thousands):

	Fiscal Year Ended
	May 27,  2017		May 28,  2016
Continuing operations	$	—	$	117
Discontinued operations (1)		1,883		1,883
	$	1,883	$	2,000

(1) Relates to an amended Illinois state income tax return related to the sale of RFPD.