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Note 11. Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2020
Income Taxes [Abstract] |
Schedule of Deferred Tax Assets and Liabilities | The components of the deferred tax assets and liabilities as of June 30, 2020 and 2019, were as follows:
(Amounts in Thousands) | 2020 |  | 2019
Deferred Tax Assets: |  |  |  |  |
Receivables | $ | 145 |  |  | $ | 105 |
Inventory | 1,894 |  |  | 1,914 |
Employee benefits | 224 |  |  | 193 |
Deferred compensation | 5,338 |  |  | 6,149 |
Other current liabilities | 265 |  |  | 1,275 |
Tax credit carryforwards | 2,445 |  |  | 1,638 |
Goodwill | 1,608 |  |  | 268 |
Net operating loss carryforward | 2,398 |  |  | 2,339 |
Net foreign currency losses | — |  |  | 11 |
Miscellaneous | 4,020 |  |  | 2,970 |
Valuation Allowance | (1,637 | ) |  | (658 | )
Total asset | $ | 16,700 |  |  | $ | 16,204 |
Deferred Tax Liabilities: |  |  |
Other intangible assets | $ | 1,313 |  |  | $ | 1,412 |
Property and equipment | 1,211 |  |  | 1,116 |
Net foreign currency gains | 22 |  |  | — |
Miscellaneous | 581 |  |  | 477 |
Total liability | $ | 3,127 |  |  | $ | 3,005 |
Net Deferred Income Taxes | $ | 13,573 |  |  | $ | 13,199 |
Schedule of Income before Income Tax, Domestic and Foreign | The components of income before taxes on income are as follows:
| Year Ended June 30
(Amounts in Thousands) | 2020 |  | 2019 |  | 2018
United States | $ | (6,117 | ) |  | $ | 11,191 |  |  | $ | 5,609 |
Foreign | 31,274 |  |  | 27,294 |  |  | 39,166 |
Total income before taxes on income | $ | 25,157 |  |  | $ | 38,485 |  |  | $ | 44,775 |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes is composed of the following items:
| Year Ended June 30
(Amounts in Thousands) | 2020 |  | 2019 |  | 2018
Current Taxes: |  |  |  |  |  |  |  |
Federal | $ | (1,666 | ) |  | $ | 872 |  |  | $ | 13,132 |
Foreign | 8,479 |  |  | 7,545 |  |  | 11,982 |
State | (29 | ) |  | 203 |  |  | 459 |
Total payable | $ | 6,784 |  |  | $ | 8,620 |  |  | $ | 25,573 |
Deferred Taxes: |  |  |  |  |  |  |  |
Federal | $ | 99 |  |  | $ | 67 |  |  | $ | 5,015 |
Foreign | 237 |  |  | (1,177 | ) |  | (2,427 | )
State | (1,138 | ) |  | (603 | ) |  | (776 | )
Valuation allowance | 979 |  |  | 20 |  |  | 638 |
Total deferred | $ | 177 |  |  | $ | (1,693 | ) |  | $ | 2,450 |
Total provision for income taxes | $ | 6,961 |  |  | $ | 6,927 |  |  | $ | 28,023 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. income tax rate to the Company’s effective income tax rate follows:
| Year Ended June 30
| 2020 |  | 2019 |  | 2018
(Amounts in Thousands) | Amount |  | % |  | Amount |  | % |  | Amount |  | %
Tax computed at U.S. federal statutory rate | $ | 5,283 |  |  | 21.0 | % |  | $ | 8,082 |  |  | 21.0 | % |  | $ | 12,582 |  |  | 28.1 | %
State income taxes, net of federal income tax benefit | (1,128 | ) |  | (4.5 | ) |  | (320 | ) |  | (0.8 | ) |  | (408 | ) |  | (0.9 | )
Foreign tax rate differential | 714 |  |  | 2.8 |  |  | 313 |  |  | 0.8 |  |  | (1,615 | ) |  | (3.6 | )
Impact of foreign exchange rates on foreign income taxes | 867 |  |  | 3.4 |  |  | 156 |  |  | 0.4 |  |  | 180 |  |  | 0.4 |
Non-deductible goodwill impairment | 388 |  |  | 1.5 |  |  | — |  |  | — |  |  | — |  |  | — |
Valuation allowance | 979 |  |  | 3.9 |  |  | 20 |  |  | 0.1 |  |  | 638 |  |  | 1.4 |
Research credit | (1,056 | ) |  | (4.2 | ) |  | (627 | ) |  | (1.6 | ) |  | (378 | ) |  | (0.8 | )
Deemed repatriation | — |  |  | — |  |  | (416 | ) |  | (1.1 | ) |  | 13,436 |  |  | 30.0 |
Revaluation of net deferred tax assets | — |  |  | — |  |  | (10 | ) |  | — |  |  | 4,357 |  |  | 9.7 |
Global intangible low tax income | 607 |  |  | 2.4 |  |  | — |  |  | — |  |  | — |  |  | — |
Other - net | 307 |  |  | 1.4 |  |  | (271 | ) |  | (0.8 | ) |  | (769 | ) |  | (1.7 | )
Total provision for income taxes | $ | 6,961 |  |  | 27.7 | % |  | $ | 6,927 |  |  | 18.0 | % |  | $ | 28,023 |  |  | 62.6 | %
Summary of Income Tax Contingencies | Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2020, 2019, and 2018 were as follows:
(Amounts in Thousands) | 2020 |  | 2019 |  | 2018
Beginning balance - July 1 | $ | 904 |  |  | $ | 160 |  |  | $ | 102 |
Tax positions related to prior fiscal years: |  |  |  |  |  |  |  |
Additions | 116 |  |  | 758 |  |  | 78 |
Reductions | — |  |  | — |  |  | (20 | )
Tax positions related to current fiscal year: |  |  |  |  |  |  |  |
Additions | — |  |  | — |  |  | — |
Reductions | — |  |  | — |  |  | — |
Settlements | — |  |  | — |  |  | — |
Lapses in statute of limitations | (66 | ) |  | (14 | ) |  | — |
Ending balance - June 30 | $ | 954 |  |  | $ | 904 |  |  | $ | 160 |
Portion that, if recognized, would reduce tax expense and effective tax rate | $ | 262 |  |  | $ | 214 |  |  | $ | 137 |

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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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=84230637&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 http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
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