INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Income (Loss) from Continuing Operations Before Income Taxes

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

	Fiscal Years
	2024		2023		2022
	(Dollars in thousands)
Income (loss) before income taxes
U.S.	$	91,279	$	(10,204)	$	(41,231)
International	(1,343)		(1,794)		(3,211)
	$	89,936	$	(11,998)	$	(44,442)

Schedule of Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes consists of:

	Fiscal Years
	2024		2023		2022
	(Dollars in thousands)
Current:
U.S.	$	427	$	(219)	$	(535)
International	(77)		(428)		(425)
Deferred:
U.S.	531		(270)		3,130
International	(12)		262		(153)
	$	869	$	(655)	$	2,017

Schedule of Provision (Benefit) for Income Taxes Rate to Income (Loss) from Continuing Operations Before Income Taxes

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

	Fiscal Years
	2024		2023		2022
U.S. statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal income tax benefit	2.3		(2.7)		1.4
Valuation allowance (1)	(21.9)		(12.9)		(6.6)
Foreign income taxes at other than U.S. rates	(0.2)		(0.2)		3.0
Uncertain tax positions	(0.1)		6.7		(17.9)
Stock-based compensation	0.2		(2.7)		(2.8)
Deferred tax rate remeasurement	—		(3.6)		—
Other, net (2)	(0.3)		(0.1)		(2.6)
Effective tax rate	1.0	%	5.5	%	(4.5)	%

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(1)The change in valuation allowance for fiscal year 2024 primarily relates to the utilization of federal and state net operating losses used to offset taxable income generated from the extinguishment of long-term debt.

(2)The (0.3)% of other, net in fiscal year 2024 does not include the rate impact of any items in excess of 5% of computed tax. 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.

Schedule of Components of the Net Deferred Tax Assets and Liabilities

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

	June 30,
	2024		2023
	(Dollars in thousands)
Deferred tax assets:
Payroll and payroll related costs	$	5,422	$	5,041
Net operating loss carryforwards (1)	138,691		154,514
Tax credit carryforwards	37,647		37,515
Capital loss carryforwards	5,879		5,845
Deferred franchise fees	5,301		7,018
Operating lease liabilities	74,409		92,666
Interest expense carryforward	8,200		10,193
Other (2)	6,346		8,633
Subtotal	281,895		321,425
Valuation allowance	(181,759)		(202,185)
Total deferred tax assets	$	100,136	$	119,240
Deferred tax liabilities:
Goodwill and intangibles	$	(35,509)	$	(35,001)
Operating lease assets	(73,809)		(91,921)
Other	(2,220)		(3,254)
Total deferred tax liabilities	(111,538)		(130,176)
Net deferred tax liability	$	(11,402)	$	(10,936)

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(1)The decline in fiscal year 2024 is a result of US net operating loss utilization, primarily due to taxable income generated from the extinguishment of long-term debt.

(2)The $6.3 million of Other in fiscal year 2024 includes $3.0 million of deferred tax assets with a corresponding valuation allowance of the same amount related to discontinued operations. The $8.6 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.

Schedule of Unrecognized Tax Benefits Roll Forward

A rollforward of the unrecognized tax benefits is as follows:

	Fiscal Years
	2024		2023
	(Dollars in thousands)
Balance at beginning of period	$	21,393	$	22,173
Additions based on tax positions related to the current year	3		10
Additions (reductions) based on tax positions of prior years	12		(663)
Reductions on tax positions related to the expiration of the statute of limitations	(176)		(127)
Balance at end of period	$	21,232	$	21,393