INCOME TAXES (Tables)

12 Months Ended

Jul. 03, 2021

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income tax benefit consists of the following:

	Fiscal Year Ended
	July 3, 2021		June 27, 2020		June 29, 2019
	(in thousands)
Current income tax benefit:
United States	$	1,416	$	365	$	(537)
Foreign	1,098		154		895
	2,514		519		358
Deferred income tax benefit:
United States	(858)		(1,850)		(910)
Foreign	(84)		892		(206)
	(942)		(958)		(1,116)
Total income tax provision (benefit)	$	1,572	$	(439)	$	(758)

Effective Tax Rate Reconciliation

The Company’s effective tax rate differs from the federal tax rate as follows:

	Fiscal Year Ended
	July 3, 2021		June 27, 2020		June 29, 2019
	(in thousands)
Federal income tax provision (benefit) at statutory rates	$	1,242	$	907	$	(1,836)
State income taxes, net of federal tax effect	76		90		(158)
Foreign tax rate differences	(36)		336		251
Tax rate change	184		—		—
Provisional transition tax on accumulated foreign earnings	—		—		(384)
Effect of income tax credits	(413)		(310)		(861)
Previously unrecognized tax benefits	(296)		(1,345)		—
Effect of repatriation of foreign earnings, net	(61)		—		(42)
Goodwill write-off	—		—		1,726
Global Intangible Low-Taxed Income (GILTI) tax	34		—		150
Provision to return reconciliation	50		(241)		630
Equity compensation shortfall	572		—		—
Other	220		124		(234)
Income tax provision (benefit)	$	1,572	$	(439)	$	(758)

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of income (loss) before income taxes were:

	Fiscal Year Ended
	July 3, 2021		June 27, 2020		June 29, 2019
	(in thousands)
Domestic	$	2,839	$	1,142	$	(12,220)
Foreign	3,074		3,177		3,480
Income (loss) before income taxes	$	5,913	$	4,319	$	(8,740)

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities consist of the following at:

	July 3, 2021		June 27, 2020
	(in thousands)
Deferred tax assets:
Net operating loss	$	465	$	184
Tax credit carryforwards, net	3,581		5,961
Inventory	1,190		1,426
Identifiable intangibles	432		493
Accruals	3,132		2,847
Mart-to-market adjustments	—		415
ASC 606 deferred costs	4,670		1,943
Lease liabilities	2,909		3,201
Other	385		212
Deferred income tax assets	$	16,764	$	16,682
Deferred tax liabilities:
Accrued withholding tax - unremitted earnings	(754)		(820)
Fixed assets	(794)		(566)
Right-of-use assets	(2,930)		(3,290)
Mart-to-market adjustments	(816)		—
ASC 606 accelerated revenue	(672)		(1,344)
Other	(1,142)		(718)
Deferred income tax liabilities	$	(7,108)	$	(6,738)
Net deferred income tax assets	$	9,656	$	9,944
Balance sheet caption reported in:
Long-term deferred income tax asset	$	9,656	$	10,178
Long-term deferred income tax liability	—		(234)
Net deferred income tax asset	$	9,656	$	9,944

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Fiscal Year Ended
	July 3, 2021		June 27, 2020		June 29, 2019
	(in thousands)
Beginning Balance	$	2,863	$	4,099	$	4,011
Additions based on tax positions related to the current year	193		109		88
Adjustment to prior year tax positions	2,102		—		—
Lapse of statute of limitations	(295)		(1,345)		—
Ending Balance	$	4,863	$	2,863	$	4,099