Income Taxes (Tables)

12 Months Ended

Jun. 27, 2021

Income Tax Disclosure [Abstract]

Provision (Benefit) for Income Taxes

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

	Years Ended
	June 27, 2021		June 28, 2020
Currently (recoverable) payable:
Federal	$	557	$	(1,869	)
State		420		(176	)
Foreign		2,661		3,368
		3,638		1,323
Deferred tax provision		1,473		(3,589	)
	$	5,111	$	(2,266	)

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 27, 2021			June 28, 2020
U.S. statutory rate		21.0	%		21.0	%
State taxes, net of Federal tax benefit		1.1			2.1
Foreign subsidiaries		1.0			(5.8	)
Federal net operating loss carry-back statutory rate      differential		—			11.7
Global intangible low-taxed income		0.5			(4.4	)
Research and development tax credit		(2.3	)		9.9
Non-controlling interest		(5.9	)		(2.3	)
Uncertain tax positions		—			(4.0	)
Stock based compensation		0.1			(1.8	)
Other		(0.9	)		1.5
		14.6	%		27.9	%

Components of Deferred Tax (Liabilities) Assets

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

	June 27, 2021			June 28, 2020
Unrecognized pension and postretirement benefit    plan liabilities	$	659		$	617
Accrued warranty		499			517
Payroll-related accruals		3,044			2,259
Stock-based compensation		306			389
Inventory reserve		964			964
Environmental reserve		327			296
Repair and maintenance supply parts reserve		284			510
Allowance for doubtful accounts		118			118
Lease Liability		799			882
Right of Use Assets		(799	)		(882	)
Credit carry-forwards		1,544			3,860
Postretirement obligations		(294	)		(357	)
Accumulated depreciation		(4,663	)		(5,063	)
Accrued pension obligations		459			472
Joint ventures		1,187			1,167
Other		618			741
	$	5,052		$	6,490

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 27, 2021 and June 28, 2020 (thousands of dollars):

	Years Ended
	June 27, 2021			June 28, 2020
Unrecognized tax benefits, beginning of year	$	1,462		$	1,138
Gross increases – tax positions in prior years		76			140
Gross increases – current period tax positions		207			245
Tax years closed		(287	)		(61	)
Unrecognized tax benefits, end of year	$	1,458		$	1,462