INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2021

Schedule of Income before Income Tax, Domestic and Foreign

Income before income taxes consists of the following:


	Fiscal Years Ended
	June 30, 2021		June 24, 2020		June 26, 2019
Domestic	$	146.7	$	5.0	$	168.1
Foreign	(1.5)		(0.1)		3.7
Income before income taxes	$	145.2	$	4.9	$	171.8

Provision (Benefit) For Income Taxes and Effective Tax Rate

The Provision (benefit) for income taxes and effective tax rate consists of the following:


	Fiscal Years Ended
	June 30, 2021			June 24, 2020			June 26, 2019
Current income tax (benefit) expenses:
Federal	$	11.6		$	(32.9)		$	63.3
State	14.4			4.8			28.8
Foreign	—			0.0			0.6
Total current income tax (benefit) expenses	26.0			(28.1)			92.7
Deferred income tax (benefit) expenses:
Federal	(9.4)			8.8			(58.5)
State	(3.0)			(0.2)			(18.0)
Foreign	—			0.0			0.7
Total deferred income tax (benefit) expenses	(12.4)			8.6			(75.8)
Provision (benefit) for income taxes	$	13.6		$	(19.5)		$	16.9

Effective tax rate	9.4		%	(398.0)		%	9.8		%

Reconciliation Between Reported Provision (Benefit) for Income Taxes And Amount Computed By Statutory Federal Income Tax Rate

A reconciliation between the reported Provision (benefit) for income taxes and the amount computed by applying the statutory Federal income tax rate to Income before income taxes is as follows:


	Fiscal Years Ended
	June 30, 2021		June 24, 2020		June 26, 2019
Income tax expense at statutory rate	$	30.5	$	1.0	$	36.1
FICA and other tax credits	(24.7)		(24.8)		(28.2)
State income taxes, net of Federal benefit	7.8		3.6		8.5
Stock based compensation tax shortfall (windfall)	(2.3)		0.5		0.5
Other	2.3		0.2		—
Provision (benefit) for income taxes	$	13.6	$	(19.5)	$	16.9

Deferred Income Tax Assets And Liabilities

The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows:


	June 30, 2021		June 24, 2020
Deferred income tax assets:
Lease liabilities	$	305.1	$	313.7
Gift cards	17.0		13.7
Insurance reserves	11.5		12.2
Stock-based compensation	10.9		11.0
Federal credit carryover	6.8		7.3

Net operating losses	4.1		3.2
State credit carryover	2.5		2.8
Restructure charges and impairments	1.5		1.4
Payroll tax deferral	13.6		3.2
Other, net	10.6		7.1
Less: Valuation allowance	(6.1)		(5.6)
Total deferred income tax assets	377.5		370.0
Deferred income tax liabilities:
Lease assets	275.7		275.5
Goodwill and other amortization	22.6		21.6
Depreciation and capitalized interest on property and equipment	11.8		19.8
Prepaid expenses	16.0		14.4
Other, net	0.5		0.5
Total deferred income tax liabilities	326.6		331.8
Deferred income taxes, net	$	50.9	$	38.2

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits are as follows:


	June 30, 2021		June 24, 2020
Balance at beginning of year	$	3.0	$	3.5
Additions based on tax positions related to the current year	0.3		0.3
Additions based on tax positions related to prior years	1.4		—
Settlements with tax authorities	—		0.0
Expiration of statute of limitations	(0.4)		(0.8)
Balance at end of year	$	4.3	$	3.0