INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Components of earnings (loss) before income taxes

Components of earnings (loss) before income taxes are as follows (in thousands): 

	2021		2020		2019
Domestic operations	$	4,308	$	(24,450)	$	1,507
Foreign operations	13,118		4,453		8,103
	$	17,426	$	(19,997)	$	9,610

Schedule of the provision for (benefit from ) income taxes

The provision for (benefit from) income taxes consists of the following (in thousands):

	2021		2020		2019
Current:
Federal	$	165	$	(19)	$	(106)
Foreign	4,686		3,633		2,398
State	45		30		37
Deferred:
Federal	(1,843)		(1,514)		1,139
Foreign	(1,390)		53		(172)
State	230		(341)		235
	$	1,893	$	1,842	$	3,531

Schedule of reconciliations of expected tax expense

Reconciliations of expected tax expense at the U.S. statutory rate to actual tax expense (benefit) are as follows (in thousands):

	2021		2020		2019
Expected tax expense (benefit)	$	3,660	$	(4,199)	$	2,018
State taxes, net of federal effect	171		(1,042)		(5)
Foreign taxes, net of federal credits	1,424		1,210		(1,055)
Change in valuation allowance	—		1,996		1,744
Tax reserve adjustments	(63)		1,946		(66)
Return to provision and other adjustments	165		372		(57)
Goodwill impairment	—		130		—
Tax rate change applied to deferred tax balances	(675)		54		(129)
Global intangible low taxed income	(2,622)		1,558		1,121
Other permanent items	(167)		(183)		(40)
Actual tax expense	$	1,893	$	1,842	$	3,531

Schedule of deferred income taxes

Deferred income taxes at June 30, 2021 and 2020 are attributable to the following (in thousands): 

	2021		2020
Inventories	$	936	$	1,339
Employee benefits (other than pension)	1,469		684
Operating lease liabilities	1,004		1,111
Book reserves	541		695
Federal NOL, various carryforward periods	5,004		716
State NOL, various carryforward periods	2,072		1,719
Foreign NOL, various carryforward periods	707		388
Foreign tax credit carryforward, expiring 2023 – 2028	7,329		7,212
Pension benefits	8,253		13,175
Retiree medical benefits	481		1,961
Depreciation	18		(186)
Intangibles	(91)		580
Right of use assets	(1,027)		(1,088)
Federal research and development and AMT credit carryforward	961		817
Contingency accruals	(1,275)		(698)
Other temporary taxable differences	(382)		—
Other temporary deductible differences	1,832		1,404
Total deferred tax assets	27,832		29,829
Valuation allowance	(8,759)		(8,811)
Net deferred tax asset	$	19,073	$	21,018

Schedule of unrecognized tax benefits

Reconciliations of the beginning and ending amount of unrecognized tax benefits are as follows (in thousands):

Balance July 1, 2018	$	(10,882)
Increase for tax positions taken during the current period	(215)
Increase for tax positions taken during the prior period	5
Effect of exchange rate changes	16
Decrease relating to lapse of applicable statute of limitations	137
Balance June 30, 2019	(10,939)
Increase for tax positions taken during the current period	(326)
Decrease for tax positions taken during the prior period	(188)
Effect of exchange rate changes	299
Decrease relating to lapse of applicable statute of limitations	48
Balance June 30, 2020	(11,106)
Increase for tax positions taken during the current period	(494)
Increase for tax positions taken during the prior period	386
Effect of exchange rate changes	(207)
Decrease relating to lapse of applicable statute of limitations	61
Balance June 30, 2021	$	(11,360)