Income Taxes

The sources of pretax income are as follows:



	Twelve Months Ended
	June 30, 2015			June 30, 2014			June 30, 2013
	(In thousands)
Domestic	$	(4,001	)	$	60,129		$	37,876
Foreign	12,193			(3,318		)	(1,960		)
Total	$	8,192		$	56,811		$	35,916

For fiscal 2015 and 2014, domestic pretax income included a loss of $19.1 million and income of $1.1 million, respectively, related to our acquired EPC joint venture project. The Company consolidates the acquired EPC joint venture project and reports a noncontrolling interest. Accordingly, the Company's pretax income includes the noncontrolling interest holder's share of the acquired EPC project loss for which the Company does not receive a tax benefit.

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



	Twelve Months Ended
	June 30, 2015			June 30, 2014			June 30, 2013
	(In thousands)
Current:
Federal	$	7,535		$	19,870		$	8,260
State	1,606			3,117			1,268
Foreign	1,791			613			449
	10,932			23,600			9,977
Deferred:
Federal	1,803			(3,951		)	1,801
State	(362		)	(51		)	126
Foreign	(2,283		)	336			4
	(842		)	(3,666		)	1,931
	$	10,090		$	19,934		$	11,908

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, 2015			June 30, 2014			June 30, 2013
	(In thousands)
Expected provision for Federal income taxes at the statutory rate	$	2,868		$	19,887		$	12,570
State income taxes, net of Federal benefit	1,023			2,275			1,252
Deemed foreign dividends	1,462			—			—
Charges without tax benefit	1,478			1,405			1,231
Change in valuation allowance	25			—			(140		)
IRC S199 deduction	—			(1,546		)	(844		)
Foreign tax credits	(1,433		)	—			—
Research & Development Credit	(1,197		)	(1,793		)	(1,450		)
Foreign tax differential	(529		)	(182		)	(160		)
Other	(276		)	262			(551		)
Noncontrolling interest	6,669			(374		)	—
Provision for income taxes	$	10,090		$	19,934		$	11,908

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



	June 30, 2015			June 30, 2014
	(In thousands)
Deferred tax assets:
Warranty reserve	$	312		$	234
Bad debt reserve	164			80
Paid-time-off accrual	765			712
Insurance reserve	2,178			2,519
Legal reserve	382			356
Net operating loss benefit and credit carryforwards	7,380			4,061
Valuation allowance	(115		)	(90		)
Accrued compensation and pension	1,059			2,187
Stock compensation expense on nonvested deferred shares	3,080			1,969
Accrued losses	970			1,488
Other—net	897			314
Total deferred tax assets	17,072			13,830
Deferred tax liabilities:
Tax over book depreciation	9,987			8,537
Tax over book amortization	1,658			1,903
Branch future liability	2,193			—
Prepaid insurance	160			2,104
Other—net	589			459
Total deferred tax liabilities	14,587			13,003
Net deferred tax asset (liability)	$	2,485		$	827

As reported in the consolidated balance sheets:



	June 30, 2015			June 30, 2014
	(In thousands)
Current deferred tax assets	$	8,298		$	5,994
Non-current deferred tax assets	2,073			—
Current deferred tax liabilities	(473		)	—
Non-current deferred tax liabilities	(7,413		)	(5,167		)
Net deferred tax asset (liability)	$	2,485		$	827

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, 2015 and June 30, 2014 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	Amount (in thousands)
State net operating losses	June 2024 to June 2031	$	2,229
State tax credits	No expiration	316
Federal foreign tax credits	June 2016 to June 2024	3,371
Foreign net operating losses	June 2027 to June 2034	8,656
Foreign tax credits	June 2033	$	16

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, 2015, 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 2010. At June 30, 2015, 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. We have recorded a $0.8 million liability as of June 30, 2015 for unrecognized tax positions and the payment of related interest and penalties. We treat the related interest and penalties as income tax expense. Due to the uncertainties related to these tax matters, we are unable to make a reasonably reliable estimate as to when cash settlement with a taxing authority will occur.