Income Taxes

The sources of pretax income are as follows:



	Twelve Months Ended
	June 30, 2014			June 30, 2013			June 30, 2012
	(In thousands)
Domestic	$	60,129		$	37,876		$	27,346
Foreign	(3,318		)	(1,960		)	3,144
Total	$	56,811		$	35,916		$	30,490

The components of the provision for income taxes are as follows:



	Twelve Months Ended
	June 30, 2014			June 30, 2013		June 30, 2012
	(In thousands)
Current:
Federal	$	19,870		$	8,260	$	11,320
State	3,117			1,268		1,129
Foreign	613			449		762
	23,600			9,977		13,211
Deferred:
Federal	(3,951		)	1,801		(151		)
State	(51		)	126		283
Foreign	336			4		(41		)
	(3,666		)	1,931		91
	$	19,934		$	11,908	$	13,302

The difference between the expected income tax provision applying the domestic federal statutory tax rate and the reported income tax provision is as follows:



	Twelve Months Ended
	June 30, 2014			June 30, 2013			June 30, 2012
	(In thousands)
Expected provision for Federal income taxes at the statutory rate	$	19,887		$	12,570		$	10,670
State income taxes, net of Federal benefit	2,275			1,252			970
Charges without tax benefit	1,405			1,231			1,004
Change in valuation allowance	—			(140		)	(544		)
Cumulative non-deductible expenses	—			—			2,139
IRC S199 deduction	(1,546		)	(844		)	(687		)
Research & Development Credit	(1,793		)	(1,450		)	—
Foreign tax differential	(182		)	(160		)	—
Other	(112		)	(551		)	(250		)
Provision for income taxes	$	19,934		$	11,908		$	13,302

Significant components of the Company’s deferred tax assets and liabilities are as follows:



	June 30, 2014			June 30, 2013
	(In thousands)
Deferred tax assets:
Warranty reserve	$	234		$	—
Bad debt reserve	80			310
Paid-time-off accrual	712			602
Insurance reserve	2,519			2,227
Legal reserve	356			462
Net operating loss benefit and credit carryforwards	4,061			3,885
Valuation allowance	(90		)	(90		)
Accrued compensation and pension	2,187			850
Stock compensation expense on nonvested deferred shares	1,969			943
Accrued losses	1,488			232
Other—net	314			204
Total deferred tax assets	13,830			9,625
Deferred tax liabilities:
Tax over book depreciation	8,537			9,064
Tax over book amortization	1,903			1,137
Prepaid insurance	2,104			1,217
Other—net	459			—
Total deferred tax liabilities	13,003			11,418
Net deferred tax asset (liability)	$	827		$	(1,793	)

As reported in the consolidated balance sheets:



	June 30, 2014			June 30, 2013
	(In thousands)
Current deferred tax assets	$	5,994		$	5,657
Non-current deferred tax liabilities	(5,167		)	(7,450		)
Net deferred tax asset (liability)	$	827		$	(1,793	)

The Company has state net operating loss carryforwards, state tax credit carryforwards, federal foreign tax credit carryforwards, foreign net operating loss carryforwards and foreign tax credit carryforwards. The valuation allowance at June 30, 2014 and June 30, 2013 reduces the recognized tax benefit of these carryforwards to an amount that is more likely than not to be realized. These carryforwards will generally expire as shown below:



Item	Expiration Period
State net operating losses	June 2023 to June 2030
State tax credits	No expiration
Federal foreign tax credits	June 2016 to June 2024
Foreign net operating losses	June 2027 to June 2034
Foreign tax credits	June 2033

In general, it is the practice and intention of the Company to reinvest the earnings of its Canadian subsidiaries in these operations. Such amounts become subject to United States taxation upon the remittance of dividends and under certain other circumstances. As of June 30, 2014, unremitted earnings of foreign subsidiaries, which have been or are intended to be permanently invested, aggregated to approximately $5.1 million. We anticipate that any deferred tax liability related to the investment in these foreign subsidiaries could be offset by foreign tax credits.

The Company files tax returns in several taxing jurisdictions in the United States and Canada. With few exceptions, the Company is no longer subject to examination by taxing authorities through fiscal 2008. At June 30, 2014, the Company updated its evaluation of its open tax years in all known jurisdictions. Based on this evaluation, the Company did not identify any material uncertain tax positions.