INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Components of earnings (loss) before income taxes

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

	2022		2021		2020
Domestic operations	$	7,619	$	4,308	$	(24,450)
Foreign operations	13,900		13,118		4,453
	$	21,519	$	17,426	$	(19,997)

Schedule of the provision for (benefit from ) income taxes

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

	2022		2021		2020
Current:
Federal	$	(319)	$	165	$	(19)
Foreign	5,478		4,686		3,633
State	33		45		30
Deferred:
Federal	2,256		(1,843)		(1,514)
Foreign	(928)		(1,390)		53
State	121		230		(341)
	$	6,641	$	1,893	$	1,842

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):

	2022		2021		2020
Expected tax expense (benefit)	$	4,519	$	3,660	$	(4,199)
State taxes, net of federal effect	321		171		(1,042)
Foreign taxes, net of federal credits	1,091		1,424		1,210
Change in valuation allowance	247		—		1,996
Tax reserve adjustments	127		(63)		1,946
Return to provision and other adjustments	323		165		372
Goodwill impairment	—		—		130
Tax rate change applied to deferred tax balances	43		(675)		54
Global intangible low taxed income	322		(2,622)		1,558
Other permanent items	(352)		(167)		(183)
Actual tax expense	$	6,641	$	1,893	$	1,842

Schedule of deferred income taxes

Deferred income taxes at June 30, 2022 and 2021 are attributable to the following (in thousands): 

	2022		2021
Inventories	$	2,009	$	936
Employee benefits (other than pension)	859		1,469
Operating lease liabilities	1,403		1,004
Book reserves	859		541
Federal NOL, various carryforward periods	2,440		5,004
State NOL, various carryforward periods	1,719		2,072
Foreign NOL, various carryforward periods	365		707
Foreign tax credit carryforward, expiring 2023 – 2028	7,316		7,329
Pension benefits	5,527		8,253
Retiree medical benefits	382		481
Depreciation	(336)		18
Intangibles	(272)		(91)
Right of use assets	(1,372)		(1,027)
Federal research and development and AMT credit carryforward	894		961
Contingency accruals	92		(1,275)
Other temporary taxable differences	(151)		(382)
Other temporary deductible differences	2,140		1,832
Total deferred tax assets	23,874		27,832
Valuation allowance	(8,950)		(8,759)
Net deferred tax asset	$	14,924	$	19,073

Schedule of unrecognized tax benefits

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

Balance July 1, 2019	$	(10,939)
Increase for tax positions taken during the current period	(326)
Increase 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)
Decrease 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)
Increase for tax positions taken during the current period	(66)
Increase for tax positions taken during the prior period	—
Effect of exchange rate changes	98
Decrease relating to lapse of applicable statute of limitations	40
Balance June 30, 2022	$	(11,288)