Income Taxes (Tables)

12 Months Ended

Jun. 28, 2015

Income Tax Disclosure [Abstract]

Provision (Benefit) for Income Taxes

The provision for income taxes consisted of the following (thousands of dollars):

	2015			2014		2013
Currently payable:
Federal	$	9,891		$	4,811	$	(561	)
State		657			252		185
Foreign		2,164			2,164		1,895
		12,712			7,227		1,519
Deferred tax (benefit) provision		(3,330	)		1,447		3,847
	$	9,382		$	8,674	$	5,366

Difference Between Income Taxes Computed at the Federal Statutory Tax Rate and the Provision for Income Taxes

The items accounting for the difference between income taxes computed at the Federal statutory tax rate and the provision for income taxes were as follows:

	2015			2014			2013
US statutory rate		34.7	%		34.5	%		34.0	%
State taxes, net of Federal tax benefit		0.7			1.0			2.0
Foreign subsidiaries		(1.3	)		(0.9	)		(2.2	)
Non-controlling interest		(4.1	)		(3.5	)		(3.1	)
Valuation allowance		—			—			(1.0	)
Other		(2.4	)		0.1			2.1
		27.6	%		31.2	%		31.8	%

Components of Deferred Tax Assets and (Liabilities)

The components of deferred tax assets and (liabilities) were as follows (thousands of dollars):

	June 28, 2015			June 29, 2014
Deferred income taxes-current:
Repair and maintenance supply parts reserve	$	229		$	216
Payroll-related accruals		2,314			2,049
Environmental reserve		512			517
Inventory reserve		722			720
Allowance for doubtful accounts		185			185
Accrued warranty		3,250			966
Customer sales concession reserve		1,465			-
Other		878			1,018
	$	9,555		$	5,671
Deferred income taxes-noncurrent:
Accrued pension obligations	$	(12,594	)	$	(11,741	)
Unrecognized pension and postretirement benefit plan liabilities		11,125			10,038
Accumulated depreciation		(5,253	)		(4,967	)
Stock-based compensation		928			692
Postretirement obligations		(63	)		171
NOL/credit carry-forwards		105			143
Other		1,157			537
	$	(4,595	)	$	(5,127	)

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended June 28, 2015 and June 29, 2014 (thousands of dollars):

	Year Ended
	June 28, 2015			June 29, 2014
Unrecognized tax benefits, beginning of year	$	1,289		$	1,510
Gross increases – tax positions in prior years		3			—
Gross decreases – tax positions in prior years		-			(215	)
Gross increases – current period tax positions		146			59
Tax Years Closed		(1,001	)		(65	)
Unrecognized tax benefits, end of year	$	437		$	1,289