Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of sources of pretax income (loss)

Sources of pretax income (loss) 

	Fiscal Years Ended
	June 30, 2020		June 30, 2019		June 30, 2018
	(In thousands)
Domestic	$	(32,660)	$	46,032	$	(2,656)
Foreign	(3,984)		(7,620)		(9,492)
Total	$	(36,644)	$	38,412	$	(12,148)

Components of the provision for income tax expense (benefit)

Components of the provision for income tax expense (benefit) 

	Fiscal Years Ended
	June 30, 2020		June 30, 2019		June 30, 2018
	(In thousands)
Current:
Federal	$	(376)	$	6,085	$	(121)
State	412		2,390		135
Foreign	23		(97)		504
	59		8,378		518
Deferred:
Federal	(5,000)		(528)		1,093
State	(1,091)		451		(590)
Foreign	2,462		2,129		(1,689)
	(3,629)		2,052		(1,186)
	$	(3,570)	$	10,430	$	(668)

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

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

	Fiscal Years Ended
	June 30, 2020		June 30, 2019		June 30, 2018
	(In thousands)
Expected provision (benefit) for federal income taxes at the statutory rate	$	(7,695)	$	8,067	$	(3,408)
State income taxes, net of federal benefit	(768)		2,288		247
Impairment of non-deductible goodwill(1)	1,813		—		2,342
Charges without tax benefit	1,707		1,233		1,100
Change in valuation allowance(2)	3,062		4,512		1,173
Reversal of branch liability(2)	—		(3,546)		—
Excess tax expense (benefit) on stock-based compensation	230		(296)		511
Remeasurement of deferred taxes(3)	—		—		(455)
Research and development and other tax credits	(1,724)		(1,972)		(1,665)
Foreign tax differential	(132)		(248)		(10)
Change in uncertain tax positions	20		22		(7)
Other	(83)		370		(496)
Provision (benefit) for federal, state and foreign income taxes	$	(3,570)	$	10,430	$	(668)

(1)In fiscal 2020, the Company impaired $32.9 million of goodwill, which included $8.6 million of non-deductible goodwill. In fiscal 2018, the Company impaired $17.3 million of goodwill, which included $8.3 million of non-deductible goodwill. See Note 4 - Goodwill and Other Intangible Assets for more information about the impairments.

(2)In fiscal 2020, the Company placed $3.1 million of valuation allowances on net operating loss carryforwards and foreign tax credits primarily related to Canada. In fiscal 2019, the Company placed $4.5 million of valuation allowances on net operating loss carryforwards and foreign tax credits generated by its branch operations in Canada, which will likely not be utilized prior to their expiration. These valuation allowances were largely offset by the reversal $3.5 million of branch liabilities associated with the Canadian net operating loss carryforwards and foreign tax credits.

(3)This represents the remeasurement of deferred taxes in connection with Tax Cuts and Jobs Act.

Significant components of the Company's deferred tax assets and liabilities

Significant components of the Company’s deferred tax assets and liabilities

	June 30, 2020		June 30, 2019
	(In thousands)
Deferred tax assets:
Warranty reserve	$	206	$	206
Bad debt reserve	233		238
Paid-time-off accrual	669		616
Insurance reserve	1,221		1,577
Legal reserve	207		1
Net operating loss benefit and credit carryforwards	10,354		10,054
Valuation allowance	(7,763)		(4,959)
Accrued compensation and pension	1,447		1,115
Stock compensation expense on nonvested deferred shares	3,231		3,679
Accrued losses	96		194
Restructuring reserve	1,381		—
Foreign currency translation and other	843		833
Total deferred tax assets	12,125		13,554
Deferred tax liabilities:
Tax over book depreciation	11,313		9,349
Tax over book (book over tax) amortization	(5,195)		1,770
Branch future liability	74		34
Receivable holdbacks and other	6		16
Total deferred tax liabilities	6,198		11,169
Net deferred tax asset	$	5,927	$	2,385

Significant components of the Company's deferred tax assets and liabilities as reported in the Consolidated Balance Sheets

As reported in the Consolidated Balance Sheets:

	June 30, 2020		June 30, 2019
	(In thousands)
Deferred income tax assets	5,988		2,683
Deferred income tax liabilities	(61)		(298)
Net deferred tax asset	$	5,927	$	2,385

Summary of Operating Loss Carryforwards

Operating Loss Carryforwards	Expiration Period	Amount (in thousands)
State net operating losses	June 2024 to June 2040	$	19,676
Foreign net operating losses	June 2029 to June 2040	$	24,618

Summary of Tax Credit Carryforwards

Tax Credit Carryforwards	Expiration Period	Amount (in thousands)
State tax credits	June 2032 to June 2035	$	877
Federal foreign tax credits	June 2021 to June 2025	$	1,239
Foreign tax credits	June 2035 to June 2040	$	627