Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

The sources of pretax income (loss) are as follows:



	Twelve Months Ended
	June 30, 2017			June 30, 2016		June 30, 2015
	(In thousands)
Domestic	$	19,763		$	33,986	$	(4,001	)
Foreign	(17,317		)	5,667		12,193
Total	$	2,446		$	39,653	$	8,192

Components of the provision for income taxes

The components of the provision for income tax expense (benefit) are as follows:



	Twelve Months Ended
	June 30, 2017			June 30, 2016			June 30, 2015
	(In thousands)
Current:
Federal	$	6,522		$	9,930		$	7,535
State	(185		)	2,570			1,606
Foreign	(1,509		)	(262		)	1,791
	4,828			12,238			10,932
Deferred:
Federal	618			887			1,803
State	101			67			(362		)
Foreign	(3,239		)	924			(2,283		)
	(2,520		)	1,878			(842		)
	$	2,308		$	14,116		$	10,090

Difference between expected income tax provision applying domestic federal statutory tax rate and reported income tax provision

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, 2017			June 30, 2016			June 30, 2015
	(In thousands)
Expected provision for Federal income taxes at the statutory rate	$	857		$	13,879		$	2,868
State income taxes, net of Federal benefit	808			1,827			1,023
Deemed foreign dividends	—			—			1,462
Charges without tax benefit	1,741			2,187			1,478
Change in valuation allowance	1,295			311			25
Excess tax benefits on stock-based compensation⁽¹⁾	(496		)	—			—
IRC S199 deduction	(749		)	(999		)	—
Foreign tax credits	—			—			(1,433		)
Research and development and other tax credits	(1,626		)	(1,928		)	(1,197		)
Foreign tax differential	1,496			(815		)	(529		)
Noncontrolling interest	(112		)	1,164			6,669
Change in uncertain tax positions	(22		)	(569		)	—
Adjustment to tax accounts	(924		)	(786		)	—
Other	40			(155		)	(276		)
Provision for income taxes	$	2,308		$	14,116		$	10,090

Significant components of Company's deferred tax assets and liabilities

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



	June 30, 2017			June 30, 2016
	(In thousands)
Deferred tax assets:
Warranty reserve	$	312		$	195
Bad debt reserve	3,869			3,188
Paid-time-off accrual	821			865
Insurance reserve	2,284			2,461
Legal reserve	82			87
Net operating loss benefit and credit carryforwards	9,332			8,207
Valuation allowance	(1,719		)	(424		)
Accrued compensation and pension	1,346			1,268
Stock compensation expense on nonvested deferred shares	3,731			3,472
Accrued losses	340			274
Foreign currency translation and other	1,080			1,041
Total deferred tax assets	21,478			20,634
Deferred tax liabilities:
Tax over book depreciation	11,446			11,504
Tax over book amortization	3,325			2,588
Branch future liability	2,538			2,889
Prepaid insurance	—			396
Receivable holdbacks and other	912			2,736
Total deferred tax liabilities	18,221			20,113
Net deferred tax asset	$	3,257		$	521

Significant components of Company's deferred tax assets and liabilities as reported in consolidated balance sheets



	June 30, 2017			June 30, 2016
	(In thousands)
Deferred income tax assets	3,385			3,719
Deferred income tax liabilities	(128		)	(3,198		)
Net deferred tax asset	$	3,257		$	521

Summary of Tax Credit Carryforwards

These carryforwards will generally expire as shown below:



Tax Credit Carryforwards	Expiration Period	Amount (in thousands)
State tax credits	June 2017 to June 2032	$	498
Federal foreign tax credits	June 2018 to June 2024	$	2,348
Foreign tax credits	June 2034 to June 2036	$	612

Summary of Operating Loss Carryforwards



Operating Loss Carryforwards	Expiration Period	Amount (in thousands)
State net operating losses	June 2022 to June 2037	$	19,015
Foreign net operating losses	December 2028; June 2031 to June 2036	$	15,454