Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v2.4.0.6
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2012
Income Tax Disclosure [Abstract]  
Provision for income taxes
The provision for income taxes consists of the following (in thousands):
 
Year ended
 
June 30,
2012
 
July 2,
2011
 
July 3,
2010
Current:
 
 
 
 
 
Federal
$
(6,795
)
 
$
3,936

 
$
3,317

State
—

 
315

 
288

Foreign
157

 
167

 
148

Total current
$
(6,638
)
 
$
4,418

 
$
3,753

Deferred:
 
 
 
 
 
Federal
$
(284
)
 
$
562

 
$
115

State
(985
)
 
373

 
598

Total deferred
(1,269
)
 
935

 
713

(Benefit from) provision for income taxes
$
(7,907
)
 
$
5,353

 
$
4,466

Reconciliation between actual provision for incomes taxes and federal statutory income tax rate
A reconciliation between actual (benefit from) provision for income taxes and the provision for income taxes computed using the federal statutory income tax rate of 34.0% is as follows (in thousands):
 
Year ended
 
June 30,
2012
 
July 2,
2011
 
July 3,
2010
Income tax expense at the statutory rate
$
(3,520
)
 
$
7,712

 
$
5,662

State income tax expense, net of federal income tax effect
(975
)
 
561

 
358

Rate difference and nondeductible items in foreign jurisdictions
(47
)
 
(20
)
 
(12
)
Impact of foreign earnings in tax-free zone
(3,683
)
 
(3,223
)
 
(1,765
)
Valuation allowance adjustments
14

 
—

 
84

Nondeductible compensation
193

 
157

 
—

Nondeductible amortization and other permanent differences
91

 
86

 
95

Amended return and charitable contribution adjustments
—

 
—

 
(20
)
Other
20

 
80

 
64

(Benefit from) provision for income taxes
$
(7,907
)
 
$
5,353

 
$
4,466

Significant components of deferred tax assets and liabilities
Significant components of our deferred tax assets and liabilities are as follows (in thousands):
 
June 30,
2012
 
July 2,
2011
Deferred tax assets:
 
 
 
State net operating loss carryforwards
$
1,406

 
$
446

Charitable donation carryforward
373

 
352

Derivative — interest rate contracts
81

 
9

Currently nondeductible accruals
5,555

 
4,363

Gross deferred tax assets
7,415

 
5,170

Less valuation allowance — state net operating loss
(122
)
 
(108
)
Net deferred tax assets
7,293

 
5,062

 
 
 
 
Deferred tax liabilities:
 
 
 
Depreciation
(2,704
)
 
(2,032
)
Goodwill and intangibles
(3,319
)
 
(2,876
)
Other
(109
)
 
(100
)
Gross deferred tax liabilities
(6,132
)
 
(5,008
)
Net deferred tax asset
1,161

 
54

Less non-current net deferred tax liabilities
3,803

 
2,877

Current deferred tax asset
$
4,964

 
$
2,931