Income Taxes (Tables)

12 Months Ended

Jul. 03, 2016

Schedule of Income before Income Tax, U.S. and Foreign

Components of income before income taxes consists of the following (in thousands):



	2016		2015		2014
U.S.	$	22,203	$	38,615	$	30,291
Foreign	13,153		18,343		6,843
Total	$	35,356	$	56,958	$	37,134

Schedule of Provision (Credit) for Income Tax Benefit

The provision for income taxes consists of the following (in thousands):



	2016			2015			2014
Current
Federal	$	2,649		$	(659	)	$	9,725
State	670			859			733
Foreign	3,282			3,423			3,725
	6,601			3,623			14,183
Deferred
Federal	$	2,702		$	6,928		$	(3,831	)
State	193			495			(328		)
Foreign	(701		)	225			(1,237		)
	2,194			7,648			(5,396		)
Total	$	8,795		$	11,271		$	8,787

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. statutory tax rates to the effective tax rates on income follows:



	2016		2015		2014
U.S. Statutory Rate	35.0	%	35.0	%	35.0	%
State Taxes, Net of Federal Tax Benefit	3.4	%	2.4	%	1.6	%
Impact of Foreign Operations and Tax Rates	(7.8	)%	(1.2	)%	0.7	%
Changes to Unrecognized Tax Benefits	2.8	%	4.3	%	1.2	%
U.S. Manufacturers Deduction	(3.7	)%	(2.5	)%	(4.8	)%
Change in Accounting Method (1)	—	%	—	%	(7.8	)%
Research & Development Credit (2)	(10.6	)%	(18.1	)%	(1.0	)%
Goodwill Impairment	7.6	%	—	%	—	%
Other, Net	(1.8	)%	(0.1	)%	(1.2	)%
Effective Tax Rate	24.9	%	19.8	%	23.7	%

Schedule of Deferred Income Taxes

The components of deferred income taxes were as follows (in thousands):



Current Asset (Liability):	2016			2015
Difference Between Book and Tax Related to:
Inventory	$	13,360		$	12,159
Payroll Related Accruals	4,808			4,980
Warranty Reserves	9,747			11,065
Workers Compensation Accruals	2,812			2,421
Other Accrued Liabilities	10,117			11,432
Miscellaneous	3,892			3,814
Deferred Income Tax Asset (Liability)	$	44,736		$	45,871
Long-Term Asset (Liability):
Difference Between Book and Tax Related to:
Pension Cost	$	90,016		$	53,237
Accumulated Depreciation	(41,319		)	(43,484		)
Intangibles	(56,755		)	(58,180		)
Accrued Employee Benefits	39,083			43,428
Postretirement Health Care Obligation	14,107			15,838
Warranty	6,770			6,910
Valuation Allowance	(19,371		)	(17,198		)
Net Operating Loss/State Credit Carryforwards	24,942			22,694
Miscellaneous	(4,011		)	(1,016		)
Deferred Income Tax Asset (Liability)	$	53,462		$	22,229

Schedule of Unrecognized Tax Benefits Roll Forward

The change to the gross unrecognized tax benefits of the Company during the fiscal year ended July 3, 2016 and June 28, 2015 is reconciled as follows:

Unrecognized Tax Benefits (in thousands):



	2016			2015			2014
Beginning Balance	$	10,551		$	7,657		6,949
Changes based on tax positions related to prior year	(208		)	4,573			380
Additions based on tax positions related to current year	579			691			378
Settlements with taxing authorities	—			(2,120		)	—
Lapse of statute of limitations	—			(250		)	(50		)
Ending Balance	$	10,922		$	10,551		$	7,657