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v3.22.2.2

Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2022
Income Tax Disclosure [Abstract] |
Income Tax Expense (Benefit) | Income tax expense (benefit) consists of:
| Fiscal Year Ended June 30,
| 2022 |  | 2021 |  | 2020
| (in thousands)
Current: |  |  |  |  |
Federal | $ | 16,895 |  |  | $ | 9,132 |  |  | $ | 13,892 |
State | 5,238 |  |  | 1,261 |  |  | 3,244 |
Foreign | 3,896 |  |  | 874 |  |  | 1,188 |
Total current | 26,029 |  |  | 11,267 |  |  | 18,324 |
Deferred: |  |  |  |  |
Federal | 3,429 |  |  | 207 |  |  | (8,526) |
State | 129 |  |  | (1,297) |  |  | (2,667) |
Foreign | 338 |  |  | 1,969 |  |  | 320 |
Total deferred | 3,896 |  |  | 879 |  |  | (10,873) |
Provision for income taxes | $ | 29,925 |  |  | $ | 12,146 |  |  | $ | 7,451 |
Reconciliation of U.S.Federal Income Tax Expense | A reconciliation is provided below of the U.S. Federal income tax expense for the fiscal years ended June 30, 2022, June 30, 2021 and June 30, 2020 with the applicable statutory rate of 21%.
| Fiscal Year Ended June 30,
| 2022 |  | 2021 |  | 2020
| (in thousands)
U.S. statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
U.S. Federal income tax at statutory rate | $ | 24,911 |  |  | $ | 12,082 |  |  | $ | (15,073) |
Increase (decrease) in income taxes due to: |  |  |  |  |
State and local income taxes, net of Federal benefit | 4,265 |  |  | 996 |  |  | 1,316 |
Tax credits | (796) |  |  | (170) |  |  | (1,419) |
Valuation allowance | (200) |  |  | 3,472 |  |  | 1,699 |
Effect of varying statutory rates in foreign operations, net | 1,145 |  |  | 1,051 |  |  | 1,374 |
Stock compensation | (121) |  |  | 1,094 |  |  | 41 |
Capitalized acquisition costs | — |  |  | — |  |  | 59 |
Disallowed interest | — |  |  | 86 |  |  | 1,639 |
Earnings from foreign subsidiaries | 928 |  |  | 124 |  |  | 1,661 |
Net favorable recovery | — |  |  | — |  |  | (6,517) |
Losses on dispositions | — |  |  | (2,897) |  |  | — |
Global intangible low taxed income tax | 630 |  |  | (45) |  |  | (128) |
Non-deductible goodwill impairment | — |  |  | — |  |  | 20,180 |
Nontaxable income | (2,050) |  |  | (1,628) |  |  | — |
Notional interest deduction on net equity | (780) |  |  | (568) |  |  | — |
Other | 1,993 |  |  | (1,451) |  |  | 2,619 |
Provision for income taxes | $ | 29,925 |  |  | $ | 12,146 |  |  | $ | 7,451 |
Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below:
| June 30,
| 2022 |  | 2021
| (in thousands)
Deferred tax assets derived from: |  |  |
Allowance for accounts receivable | $ | 3,630 |  |  | $ | 5,557 |
Inventories | 3,510 |  |  | 5,577 |
Nondeductible accrued expenses | 7,859 |  |  | 8,024 |
Net operating loss carryforwards | 705 |  |  | 892 |
Tax credits | 6,410 |  |  | 7,138 |
Deferred compensation | 6,548 |  |  | 7,893 |
Stock compensation | 4,001 |  |  | 2,977 |
Capital loss carryforwards | 7,831 |  |  | 7,633 |
Timing of amortization deduction from intangible assets | 5,676 |  |  | 4,880 |
Total deferred tax assets | 46,170 |  |  | 50,571 |
Valuation allowance | (13,181) |  |  | (13,996) |
Total deferred tax assets, net of allowance | 32,989 |  |  | 36,575 |
Deferred tax liabilities derived from: |  |  |
Timing of depreciation and other deductions from building and equipment | (3,035) |  |  | (3,749) |
Timing of amortization deduction from goodwill | (5,693) |  |  | (582) |
Timing of amortization deduction from intangible assets | (11,737) |  |  | (14,345) |
Total deferred tax liabilities | (20,465) |  |  | (18,676) |
Net deferred tax assets | $ | 12,524 |  |  | $ | 17,899 |
Components of Pretax Earnings | The components of pretax earnings are as follows:
| Fiscal Year Ended June 30,
| 2022 |  | 2021 |  | 2020
| (in thousands)
Domestic | $ | 93,586 |  |  | $ | 39,511 |  |  | $ | (83,517) |
Foreign | 25,037 |  |  | 18,024 |  |  | 11,741 |
Worldwide pretax earnings | $ | 118,623 |  |  | $ | 57,535 |  |  | $ | (71,776) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
| June 30,
| 2022 |  | 2021 |  | 2020
| (in thousands)
Beginning Balance | $ | 1,121 |  |  | $ | 1,156 |  |  | $ | 1,234 |
Additions based on tax positions related to the current year | 139 |  |  | 68 |  |  | 137 |
Reduction for tax positions of prior years | (195) |  |  | (103) |  |  | (215) |
Ending Balance | $ | 1,065 |  |  | $ | 1,121 |  |  | $ | 1,156 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
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- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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