Note 10. Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Income Taxes [Abstract]

Schedule of Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities as of June 30, 2017 and 2016, were as follows:

(Amounts in Thousands)	2017		2016
Deferred Tax Assets:
Receivables	$	112	$	116
Inventory	1,792		1,288
Employee benefits	190		180
Deferred compensation	8,226		7,075
Other current liabilities	727		783
Tax credit carryforwards	749		700
Goodwill	1,421		1,823
Net operating loss carryforward	1,597		845
Net foreign currency losses	75		—
Property and equipment	1,774		2,174
Miscellaneous	1,387		890
Total asset	$	18,050	$	15,874
Deferred Tax Liabilities:
Net foreign currency gains	$	—	$	8
Miscellaneous	1,962		258
Total liability	$	1,962	$	266
Net Deferred Income Taxes	$	16,088	$	15,608

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before taxes on income are as follows:

	Year Ended June 30
(Amounts in Thousands)	2017		2016		2015
United States	$	10,051	$	1,919	$	1,195
Foreign	34,204		26,057		33,576
Total income before taxes on income	$	44,255	$	27,976	$	34,771

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is composed of the following items:

	Year Ended June 30
(Amounts in Thousands)	2017			2016			2015
Currently Payable:
Federal	$	2,696		$	280		$	186
Foreign	8,130			5,848			6,586
State	134			50			108
Total current	$	10,960		$	6,178		$	6,880
Deferred Taxes:
Federal	$	6		$	153		$	(188	)
Foreign	(631		)	(501		)	1,957
State	(259		)	(141		)	(83		)
Total deferred	$	(884	)	$	(489	)	$	1,686
Total provision for income taxes	$	10,076		$	5,689		$	8,566

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory U.S. income tax rate to the Company’s effective income tax rate follows:

	Year Ended June 30
	2017					2016					2015
(Amounts in Thousands)	Amount			%		Amount			%		Amount			%
Tax computed at U.S. federal statutory rate	$	15,489		35.0	%	$	9,791		35.0	%	$	12,170		35.0	%
State income taxes, net of federal income tax benefit	(81		)	(0.2	)	(59		)	(0.2	)	16			—
Foreign tax rate differential	(3,832		)	(8.7	)	(2,998		)	(10.7	)	(4,482		)	(12.9	)
Impact of foreign exchange rates on foreign income taxes	(613		)	(1.4	)	1,026			3.7		1,274			3.7
Foreign subsidiary capitalization	—			—		(1,801		)	(6.4	)	—			—
Research credit	(348		)	(0.8	)	(320		)	(1.2	)	(421		)	(1.2	)
Spin-off costs	—			—		—			—		625			1.8
Other - net	(539		)	(1.1	)	50			0.1		(616		)	(1.8	)
Total provision for income taxes	$	10,076		22.8	%	$	5,689		20.3	%	$	8,566		24.6	%

Summary of Income Tax Contingencies

Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2017, 2016, and 2015 were as follows:

(Amounts in Thousands)	2017		2016		2015
Beginning balance - July 1	$	46	$	—	$	792
Tax positions related to prior fiscal years:
Additions	56		46		—
Reductions	—		—		(792		)
Tax positions related to current fiscal year:
Additions	—		—		—
Reductions	—		—		—
Settlements	—		—		—
Lapses in statute of limitations	—		—		—
Ending balance - June 30	$	102	$	46	$	—
Portion that, if recognized, would reduce tax expense and effective tax rate	$	85	$	37	$	—