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Income Taxes
 12 Months Ended
Jun. 30, 2012
Income Taxes [Abstract]  
Income Taxes

Note 7—Income Taxes

The sources of pretax income are as follows:

 

                         
    Twelve Months Ended  
    June 30,
2012		     June 30,
2011		     June 30,
2010		  
    (In thousands)  

Domestic

   $ 27,346     $ 29,939     $ 4,417  

Foreign

     3,144       677       2,993  
   

 

 

    

 

 

    

 

 

  

Total

   $ 30,490     $ 30,616     $ 7,410  
   

 

 

    

 

 

    

 

 

  

The components of the provision for income taxes are as follows:

 

                         
    Twelve Months Ended  
    June 30,
2012		     June 30,
2011		     June 30,
2010		  
    (In thousands)  

Current:

                        

Federal

   $ 11,320     $ 6,104     $ 4,129  

State

     1,129       1,086       641  

Foreign

     762       604       1,226  
   

 

 

    

 

 

    

 

 

  
      13,211       7,794       5,996  

Deferred:

                        

Federal

     (151 )      3,837       (3,208 ) 

State

     283       389       (250 ) 

Foreign

     (41 )      (386 )      (4 ) 
   

 

 

    

 

 

    

 

 

  
      91       3,840       (3,462 ) 
   

 

 

    

 

 

    

 

 

  
    $ 13,302     $ 11,634     $ 2,534  
   

 

 

    

 

 

    

 

 

  

 

The difference between the expected income tax provision applying the domestic federal statutory tax rate and the reported income tax provision is as follows:

 

                         
    Twelve Months Ended  
    June 30,
2012		     June 30,
2011		     June 30,
2010		  
    (In thousands)  

Expected provision for Federal income taxes at the statutory rate

   $ 10,670     $ 10,710     $ 2,519  

State income taxes, net of Federal benefit

     970       1,095       268  

Charges without tax benefit

     1,004       16       96  

Change in valuation allowance

     (544 )      —         —    

Cumulative non-deductible expenses

     2,139       —         —    

IRC S199 deduction

     (687 )      (187 )      (349 ) 

Other

     (250 )      —         —    
   

 

 

    

 

 

    

 

 

  

Provision for income taxes

   $ 13,302     $ 11,634     $ 2,534  
   

 

 

    

 

 

    

 

 

  

The cumulative non-deductible expenses totaling $3.1 million related to deductibility limitations applying to certain items that had previously been fully deducted, of which $2.1 million was related to prior fiscal years (fiscal 2009 to fiscal 2011) and $1.0 million was for the current fiscal year. The amounts that apply to fiscal 2012 is included in the charges without tax benefit in the above table.

Significant components of the Company’s deferred tax assets and liabilities are as follows:

 

                 
    June 30,
2012		     June 30,
2011		  
    (In thousands)  

Deferred tax assets:

                

Bad debt reserve

   $ 468     $ 558  

Paid-time-off accrual

     520       429  

Insurance reserve

     2,150       2,422  

Legal reserve

     488       263  

Net operating loss benefit and credit carryforwards

     3,788       4,102  

Valuation allowance

     (230 )      (774 ) 

Accrued compensation and pension

     759       725  

Stock compensation expense on nonvested deferred shares

     1,189       821  

Accrued losses

     298       197  

Other—net

     150       132  
   

 

 

    

 

 

  

Total deferred tax assets

     9,580       8,875  

Deferred tax liabilities:

                

Tax over book depreciation

     8,512       7,872  

Other—net

     1,119       1,185  
   

 

 

    

 

 

  

Total deferred tax liabilities

     9,631       9,057  
   

 

 

    

 

 

  

Net deferred tax (liability)

   $ (51 )    $ (182 ) 
   

 

 

    

 

 

  

As reported in the consolidated balance sheets:

 

                 
    June 30,
2012		     June 30,
2011		  
    (In thousands)  

Current deferred tax assets

   $ 6,024     $ 5,607  

Non-current deferred tax liabilities

     (6,075 )      (5,789 ) 
   

 

 

    

 

 

  

Net deferred tax (liability)

   $ (51 )    $ (182 ) 
   

 

 

    

 

 

  

The Company has state operating loss carryforwards, state investment tax credit carryforwards and federal foreign tax credit carryforwards of which a portion relates to an acquisition. The valuation allowance at June 30, 2012 and June 30, 2011 reduces the recognized tax benefit of these carryforwards to an amount that will more likely than not be realized. The carryforwards generally expire between 2017 and 2028. The $0.5 million change between June 30, 2011 and June 30, 2012 is the result of the release of the valuation allowance on foreign tax credit carryovers which have now been determined to be utilizable.

In general, it is the practice and intention of the Company to reinvest the earnings of its Canadian subsidiaries in these operations. Such amounts become subject to United States taxation upon the remittance of dividends and under certain other circumstances. As of June 30, 2012, unremitted earnings of foreign subsidiaries, which have been or are intended to be permanently invested, aggregated to approximately $3.0 million. The amount of deferred tax liability related to investments in these foreign subsidiaries is $0.3 million.

The Company files tax returns in several taxing jurisdictions in the United States and Canada. With few exceptions, the Company is no longer subject to examination by taxing authorities through fiscal 2007. At June 30, 2012, the Company updated its evaluation of its open tax years in all known jurisdictions. Based on this evaluation, the Company did not identify any uncertain tax positions.