Income Taxes (Tables)

12 Months Ended

Jul. 03, 2022

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

	Years Ended
	July 3, 2022			June 27, 2021
Currently (recoverable) payable:
Federal	$	(691	)	$	557
State		161			420
Foreign		2,931			2,661
		2,401			3,638
Deferred tax provision		(1,981	)		1,473
	$	420		$	5,111

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
	July 3, 2022			June 27, 2021
U.S. statutory rate		21.0	%		21.0	%
State taxes, net of Federal tax benefit		0.4			1.1
Foreign subsidiaries		8.4			1.0
Return to provision adjustment		(11.1	)		—
Global intangible low-taxed income		0.5			0.5
Research and development tax credit		(9.7	)		(2.3	)
Solar investment tax credit		(0.8	)		—
Non-controlling interest		(1.8	)		(5.9	)
Stock based compensation		(1.3	)		0.1
Other		(1.1	)		(0.9	)
		4.5	%		14.6	%

Components of Deferred Tax (Liabilities) Assets

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

	July 3, 2022			June 27, 2021
Unrecognized pension and postretirement benefit plan liabilities	$	604		$	659
Accrued warranty		423			499
Payroll-related accruals		3,085			3,044
Stock-based compensation		360			306
Inventory reserve		1,010			964
Environmental reserve		327			327
Repair and maintenance supply parts reserve		222			284
Allowance for doubtful accounts		118			118
Lease Liability		710			799
Right of Use Assets		(710	)		(799	)
Credit carry-forwards		2,986			1,544
Postretirement obligations		(233	)		(294	)
Accumulated depreciation		(3,886	)		(4,663	)
Accrued pension obligations		504			459
Joint ventures		971			1,187
Other		446			618
	$	6,937		$	5,052

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 July 3, 2022 and June 27, 2021 (thousands of dollars):

	Years Ended
	July 3, 2022			June 27, 2021
Unrecognized tax benefits, beginning of year	$	1,458		$	1,462
Gross increases – tax positions in prior years		13			76
Gross decreases – tax positions in prior years		(19	)		—
Gross increases – current period tax positions		241			207
Tax years closed		(379	)		(287	)
Unrecognized tax benefits, end of year	$	1,314		$	1,458