Income Taxes (Tables)

12 Months Ended

Jun. 30, 2021

Income tax expense (benefit) consists of:


	Fiscal Year Ended June 30,
	2021		2020		2019
	(in thousands)
Current:
Federal	$	9,132	$	13,892	$	18,223
State	1,261		3,244		4,459
Foreign	874		1,188		(2,342)
Total current	11,267		18,324		20,340
Deferred:
Federal	207		(8,526)		(4,913)
State	(1,297)		(2,667)		(945)
Foreign	1,969		320		4,296
Total deferred	879		(10,873)		(1,562)
Provision for income taxes	$	12,146	$	7,451	$	18,778

Reconciliation of U.S.Federal Income Tax Expense

A reconciliation is provided below of the U.S. Federal income tax expense for the fiscal years ended June 30, 2021, June 30, 2020 and June 30, 2019 with the applicable statutory rate of 21%.


	Fiscal Year Ended June 30,
	2021			2020			2019
	(in thousands)
U.S. statutory rate	21.0		%	21.0		%	21.0		%
U.S. Federal income tax at statutory rate	$	12,082		$	(15,073)		$	17,564
Increase (decrease) in income taxes due to:
State and local income taxes, net of Federal benefit	996			1,316			2,864
Tax credits	(170)			(1,419)			(1,324)
Valuation allowance	3,472			1,699			57
Effect of varying statutory rates in foreign operations, net	1,051			1,374			1,938
Stock compensation	1,094			41			35
Capitalized acquisition costs	—			59			69
Disallowed interest	86			1,639			1,600
Earnings from foreign subsidiaries	124			1,661			50
Net favorable recovery	—			(6,517)			(3,112)
Losses on dispositions	(2,897)			—			—

Global intangible low taxed income (GILTI) tax	(45)			(128)			365
Non-deductible goodwill impairment	—			20,180			—
Nontaxable income	(1,628)			—			(822)
U.S. Tax Reform transition tax	—			—			(827)
Notional interest deduction on net equity	(568)			—			—


Other jurisdictions impact of rate change on deferred taxes	—			—			(20)
Other	(1,451)			2,619			341
Provision for income taxes	$	12,146		$	7,451		$	18,778

Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below:


	June 30,
	2021		2020
	(in thousands)
Deferred tax assets derived from:
Allowance for accounts receivable	$	5,557	$	6,466
Inventories	5,577		3,226
Nondeductible accrued expenses	8,024		11,109
Net operating loss carryforwards	892		3,083
Tax credits	7,138		6,734
Timing of amortization deduction from goodwill	—		12,516
Deferred compensation	7,893		7,247
Stock compensation	2,977		3,034
Capital loss carryforwards	7,633		—
Timing of amortization deduction from intangible assets	4,880		4,145
Total deferred tax assets	50,571		57,560
Valuation allowance	(13,996)		(9,195)
Total deferred tax assets, net of allowance	36,575		48,365
Deferred tax liabilities derived from:

Timing of depreciation and other deductions from building and equipment	(3,749)		(3,347)
Timing of amortization deduction from goodwill	(582)		(7,390)
Timing of amortization deduction from intangible assets	(14,345)		(16,882)
Total deferred tax liabilities	(18,676)		(27,619)
Net deferred tax assets	$	17,899	$	20,746

Components of Pretax Earnings

The components of pretax earnings are as follows:


	Fiscal Year Ended June 30,
	2021		2020		2019
	(in thousands)
Domestic	$	39,511	$	(83,517)	$	68,675
Foreign	18,024		11,741		14,962
Worldwide pretax earnings	$	57,535	$	(71,776)	$	83,637

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	June 30,
	2021		2020		2019
	(in thousands)
Beginning Balance	$	1,156	$	1,234	$	1,703
Additions based on tax positions related to the current year	68		137		69

Reduction for tax positions of prior years	(103)		(215)		(538)
Ending Balance	$	1,121	$	1,156	$	1,234