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Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2021
Income Tax Disclosure [Abstract] |
Schedule of sources of pretax income (loss) | Sources of pretax income (loss)
|  | Fiscal Years Ended
|  | June 30, 2021 |  | June 30, 2020 |  | June 30, 2019
|  | (In thousands)
Domestic |  | $ | (38,867) |  |  | $ | (32,660) |  |  | $ | 46,032 |
Foreign |  | (4,396) |  |  | (3,984) |  |  | (7,620) |
Total |  | $ | (43,263) |  |  | $ | (36,644) |  |  | $ | 38,412 |
Components of the provision for income tax expense (benefit) | Components of the provision for income tax expense (benefit)
|  | Fiscal Years Ended
|  | June 30, 2021 |  | June 30, 2020 |  | June 30, 2019
|  | (In thousands)
Current: |  |  |  |  |  |
Federal |  | $ | (13,154) |  |  | $ | (376) |  |  | $ | 6,085 |
State |  | 465 |  |  | 412 |  |  | 2,390 |
Foreign |  | (239) |  |  | 23 |  |  | (97) |
|  | (12,928) |  |  | 59 |  |  | 8,378 |
Deferred: |  |  |  |  |  |
Federal |  | 774 |  |  | (5,000) |  |  | (528) |
State |  | (291) |  |  | (1,091) |  |  | 451 |
Foreign |  | 406 |  |  | 2,462 |  |  | 2,129 |
|  | 889 |  |  | (3,629) |  |  | 2,052 |
|  | $ | (12,039) |  |  | $ | (3,570) |  |  | $ | 10,430 |
Reconciliation between the expected income tax provision applying the domestic federal statutory tax rate and the reported income tax provision | Reconciliation between the expected income tax provision applying the domestic federal statutory tax rate and the reported income tax provision
|  | Fiscal Years Ended
|  | June 30, 2021 |  | June 30, 2020 |  | June 30, 2019
|  | (In thousands)
Expected provision (benefit) for federal income taxes at the statutory rate |  | $ | (9,085) |  |  | $ | (7,695) |  |  | $ | 8,067 |
State income taxes, net of federal benefit |  | (1,240) |  |  | (768) |  |  | 2,288 |
Impairment of non-deductible goodwill(1) |  | — |  |  | 1,813 |  |  | — |
Charges without tax benefit |  | 961 |  |  | 1,707 |  |  | 1,233 |
Change in valuation allowance(2) |  | 2,797 |  |  | 3,062 |  |  | 4,512 |
Reversal of branch liability(2) |  | — |  |  | — |  |  | (3,546) |
Excess tax expense (benefit) on stock-based compensation |  | 1,826 |  |  | 230 |  |  | (296) |
Research and development and other tax credits |  | (1,707) |  |  | (1,724) |  |  | (1,972) |
Foreign tax differential |  | (96) |  |  | (132) |  |  | (248) |
Federal rate differential net operating loss carryback(3) |  | (5,223) |  |  | — |  |  | — |
Change in uncertain tax positions |  | (7) |  |  | 20 |  |  | 22 |
Other |  | (265) |  |  | (83) |  |  | 370 |
Provision (benefit) for federal, state and foreign income taxes |  | $ | (12,039) |  |  | $ | (3,570) |  |  | $ | 10,430 |
(1)In fiscal 2020, we impaired $32.9 million of goodwill, which included $8.6 million of non-deductible goodwill. See Note 4 - Goodwill and Other Intangible Assets for more information about the impairments. (2)In fiscal 2021, we placed $2.8 million of valuation allowances, including $1.5 million on certain state net operating loss carryforwards due to a recent history of cumulative losses for a subsidiary. In fiscal 2020, we placed $3.1 million of valuation allowances on net operating loss carryforwards and foreign tax credits primarily related to Canada. In fiscal 2019, we placed $4.5 million of valuation allowances on net operating loss carryforwards and foreign tax credits generated by branch operations in Canada, which will likely not be utilized prior to their expiration. These valuation allowances were largely offset by the reversal $3.5 million of branch liabilities associated with the Canadian net operating loss carryforwards and foreign tax credits. (3)Relates to fiscal 2021 net operating losses carried back under provisions of the CARES Act to fiscal years 2016 and 2017 which had a 35% federal tax rate.
Significant components of the Company's deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities
|  | June 30, 2021 |  | June 30, 2020
|  | (In thousands)
Deferred tax assets: |  |  |  |
Warranty reserve |  | $ | 206 |  |  | $ | 206 |
Bad debt reserve |  | 231 |  |  | 233 |
Paid-time-off accrual |  | 747 |  |  | 669 |
Insurance reserve |  | 1,229 |  |  | 1,221 |
Legal reserve |  | 146 |  |  | 207 |
Net operating loss benefit and credit carryforwards |  | 14,966 |  |  | 10,354 |
Valuation allowance |  | (11,104) |  |  | (7,763) |
Accrued compensation and pension |  | 690 |  |  | 1,447 |
Prepaid insurance |  | 27 |  |  | — |
Stock compensation expense on nonvested deferred shares |  | 1,895 |  |  | 3,231 |
Accrued losses |  | 64 |  |  | 96 |
Restructuring reserve |  | 725 |  |  | 1,381 |
Book over tax amortization |  | 3,765 |  |  | 5,195 |
Deferred FICA |  | 1,920 |  |  | — |
Foreign currency translation and other |  | 665 |  |  | 843 |
Total deferred tax assets |  | 16,172 |  |  | 17,320 |
Deferred tax liabilities: |  |  |  |
Tax over book depreciation |  | 10,315 |  |  | 11,313 |
Branch future liability |  | — |  |  | 74 |
Receivable holdbacks and other |  | 596 |  |  | 6 |
Total deferred tax liabilities |  | 10,911 |  |  | 11,393 |
Net deferred tax asset |  | $ | 5,261 |  |  | $ | 5,927 |
Significant components of the Company's deferred tax assets and liabilities as reported in the Consolidated Balance Sheets | As reported in the Consolidated Balance Sheets:
|  | June 30, 2021 |  | June 30, 2020
|  | (In thousands)
Deferred income tax assets |  | 5,295 |  |  | 5,988 |
Deferred income tax liabilities |  | (34) |  |  | (61) |
Net deferred tax asset |  | 5,261 |  |  | $ | 5,927 |
Summary of Operating Loss Carryforwards |
Operating Loss Carryforwards | Expiration Period | Amount (in thousands)
State net operating losses | June 2025 to indefinite | $ | 57,786 |
Foreign net operating losses | June 2029 to June 2041 | $ | 33,242 |
Summary of Tax Credit Carryforwards |
Tax Credit Carryforwards | Expiration Period | Amount (in thousands)
State tax credits | June 2033 to indefinite | $ | 578 |
Federal tax credits | June 2041 | $ | 1,087 |
Federal foreign tax credits | June 2023 to June 2025 | $ | 655 |
Foreign tax credits | June 2035 to June 2041 | $ | 687 |

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