Income Taxes (Tables)

12 Months Ended

Jun. 28, 2020

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

	Years Ended
	June 28, 2020			June 30, 2019
Currently (recoverable) payable:
Federal	$	(1,869	)	$	705
State		(176	)		162
Foreign		3,368			1,515
		1,323			2,382
Deferred tax provision		(3,589	)		(10,122	)
	$	(2,266	)	$	(7,740	)

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:

	Years Ended
	June 28, 2020			June 30, 2019
U.S. statutory rate		21.0	%		21.0	%
State taxes, net of Federal tax benefit		2.1			3.7
Foreign subsidiaries		(5.8	)		(1.8	)
U.S. tax reform: transition tax		—			2.7
Federal net operating loss carry-back statutory rate differential		11.7			—
Global intangible low-taxed income		(4.4	)		(0.7	)
Research and development tax credit		9.9			9.4
Non-controlling interest		(2.3	)		6.7
Uncertain tax positions		(4.0	)		(2.3	)
Stock based compensation		(1.8	)		(0.7	)
Other		1.5			(0.1	)
		27.9	%		37.9	%

Components of Deferred Tax (Liabilities) Assets

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

	June 28, 2020			June 30, 2019
Unrecognized pension and postretirement plan liabilities	$	617		$	701
Accrued warranty		517			446
Payroll-related accruals		2,259			2,180
Stock-based compensation		389			470
Inventory reserve		964			834
Environmental reserve		296			300
Repair and maintenance supply parts reserve		510			229
Allowance for doubtful accounts		118			118
Lease liability		882			—
Right of use assets		(882	)		—
Credit carry-forwards		3,860			1,990
Postretirement obligations		(357	)		(416	)
Accumulated depreciation		(5,063	)		(5,023	)
Accrued pension obligations		472			(1,578	)
Non-cash compensation expense		—			986
Joint ventures		1,167			968
Other		741			728
	$	6,490		$	2,933

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, 2020 and June 30, 2019 (thousands of dollars):

	Years Ended
	June 28, 2020			June 30, 2019
Unrecognized tax benefits, beginning of year	$	1,138		$	741
Gross increases – tax positions in prior years		140			229
Gross increases – current period tax positions		245			238
Tax years closed		(61	)		(70	)
Unrecognized tax benefits, end of year	$	1,462		$	1,138