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Income Taxes | 12 Months Ended
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Jun. 30, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The sources of pretax income (loss) are as follows:
|  | Twelve Months Ended
|  | June 30, 2016 |  | June 30, 2015 |  | June 30, 2014
|  | (In thousands)
Domestic |  | $ | 33,986 |  |  | $ | (4,001 | ) |  | $ | 60,129 |
Foreign |  | 5,667 |  |  | 12,193 |  |  | (3,318 | )
Total |  | $ | 39,653 |  |  | $ | 8,192 |  |  | $ | 56,811 |
For fiscal 2016 and 2015, domestic pretax income included losses of $3.3 million and $19.1 million, respectively, related to our acquired EPC joint venture project. Fiscal 2014 domestic pretax income included income of $1.1 million related to the EPC joint venture project. The Company consolidates the acquired EPC joint venture project and reports a noncontrolling interest. Accordingly, the Company's pretax income includes the noncontrolling interest holder's share of the acquired EPC project loss for which the Company does not receive a tax benefit. The components of the provision for income tax expense (benefit) are as follows:
|  | Twelve Months Ended
|  | June 30, 2016 |  | June 30, 2015 |  | June 30, 2014
|  | (In thousands)
Current: |  |  |  |  |  |
Federal |  | $ | 9,930 |  |  | $ | 7,535 |  |  | $ | 19,870 |
State |  | 2,570 |  |  | 1,606 |  |  | 3,117 |
Foreign |  | (262 | ) |  | 1,791 |  |  | 613 |
|  | 12,238 |  |  | 10,932 |  |  | 23,600 |
Deferred: |  |  |  |  |  |
Federal |  | 887 |  |  | 1,803 |  |  | (3,951 | )
State |  | 67 |  |  | (362 | ) |  | (51 | )
Foreign |  | 924 |  |  | (2,283 | ) |  | 336 |
|  | 1,878 |  |  | (842 | ) |  | (3,666 | )
|  | $ | 14,116 |  |  | $ | 10,090 |  |  | $ | 19,934 |
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, 2016 |  | June 30, 2015 |  | June 30, 2014
|  | (In thousands)
Expected provision for Federal income taxes at the statutory rate |  | $ | 13,879 |  |  | $ | 2,868 |  |  | $ | 19,887 |
State income taxes, net of Federal benefit |  | 1,827 |  |  | 1,023 |  |  | 2,275 |
Deemed foreign dividends |  | — |  |  | 1,462 |  |  | — |
Charges without tax benefit |  | 2,187 |  |  | 1,478 |  |  | 1,405 |
Change in valuation allowance |  | 311 |  |  | 25 |  |  | — |
IRC S199 deduction |  | (999 | ) |  | — |  |  | (1,546 | )
Foreign tax credits |  | — |  |  | (1,433 | ) |  | — |
Research and development and other tax credits |  | (1,928 | ) |  | (1,197 | ) |  | (1,793 | )
Foreign tax differential |  | (815 | ) |  | (529 | ) |  | (182 | )
Noncontrolling interest |  | 1,164 |  |  | 6,669 |  |  | (374 | )
Change in uncertain tax positions |  | (569 | ) |  | — |  |  | — |
Adjustment to tax accounts |  | (786 | ) |  | — |  |  | — |
Other |  | (155 | ) |  | (276 | ) |  | 262 |
Provision for income taxes |  | $ | 14,116 |  |  | $ | 10,090 |  |  | $ | 19,934 |
Significant components of the Company’s deferred tax assets and liabilities are as follows:
|  | June 30, 2016 |  | June 30, 2015
|  | (In thousands)
Deferred tax assets: |  |  |  |
Warranty reserve |  | $ | 195 |  |  | $ | 312 |
Bad debt reserve |  | 3,188 |  |  | 164 |
Paid-time-off accrual |  | 865 |  |  | 765 |
Insurance reserve |  | 2,461 |  |  | 2,178 |
Legal reserve |  | 87 |  |  | 382 |
Net operating loss benefit and credit carryforwards |  | 8,207 |  |  | 7,380 |
Valuation allowance |  | (424 | ) |  | (115 | )
Accrued compensation and pension |  | 1,268 |  |  | 1,059 |
Stock compensation expense on nonvested deferred shares |  | 3,472 |  |  | 3,080 |
Accrued losses |  | 274 |  |  | 970 |
Foreign currency translation and other |  | 1,041 |  |  | 897 |
Total deferred tax assets |  | 20,634 |  |  | 17,072 |
Deferred tax liabilities: |  |  |  |
Tax over book depreciation |  | 11,504 |  |  | 9,987 |
Tax over book amortization |  | 2,588 |  |  | 1,658 |
Branch future liability |  | 2,889 |  |  | 2,193 |
Prepaid insurance |  | 396 |  |  | 160 |
Receivable holdbacks and other |  | 2,736 |  |  | 589 |
Total deferred tax liabilities |  | 20,113 |  |  | 14,587 |
Net deferred tax asset |  | $ | 521 |  |  | $ | 2,485 |
As reported in the consolidated balance sheets:
|  | June 30, 2016 |  | June 30, 2015
|  | (In thousands)
Deferred income tax assets |  | 3,719 |  |  | 3,729 |
Deferred income tax liabilities |  | (3,198 | ) |  | (1,244 | )
Net deferred tax asset |  | $ | 521 |  |  | $ | 2,485 |
The Company has state net operating loss carryforwards, state tax credit carryforwards, federal foreign tax credit carryforwards, foreign net operating loss carryforwards and foreign tax credit carryforwards. The valuation allowance at June 30, 2016 and June 30, 2015 reduces the recognized tax benefit of these carryforwards to an amount that is more likely than not to be realized. These carryforwards will generally expire as shown below:
Tax Credit Carryforwards | Expiration Period | Amount (in thousands)
State tax credits | No expiration | $ | 357 |
Federal foreign tax credits | June 2017 to June 2025 | $ | 3,076 |
Foreign tax credits/incentives | June 2034 | $ | 42 |
Operating Loss Carryforwards | Expiration Period | Amount (in thousands)
State net operating losses | June 2025 to June 2032 | $ | 18,083 |
Foreign net operating losses | June 2028 to June 2035 | $ | 11,724 |
In general, it is the practice and intention of the Company to reinvest the earnings of its foreign subsidiaries in its foreign operations. Such amounts become subject to United States taxation upon the remittance of dividends and under certain other circumstances. As of June 30, 2016, unremitted earnings of foreign subsidiaries, which have been or are intended to be permanently invested, aggregated to approximately $14.0 million. We anticipate that any deferred tax liability related to the investment in these foreign subsidiaries could be offset by foreign tax credits. The Company files tax returns in multiple domestic and foreign taxing jurisdictions. With a few exceptions, the Company is no longer subject to examination by taxing authorities through fiscal 2011. At June 30, 2016, the Company updated its evaluation of its open tax years in all known jurisdictions. Based on this evaluation, the Company did not identify any material uncertain tax positions. We have recorded a $0.6 million liability as of June 30, 2016 for unrecognized tax positions and the payment of related interest and penalties. We treat the related interest and penalties as income tax expense. Due to the uncertainties related to these tax matters, we are unable to make a reasonably reliable estimate as to when cash settlement with a taxing authority will occur.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
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