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Income Taxes | 12 Months Ended
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Jun. 29, 2014
Income Taxes | Income Taxes The provision for income taxes consisted of the following (thousands of dollars):
|  | 2014 |  |  | 2013 |  |  | 2012 |
Currently payable: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 4,811 |  |  | $ | (561 | ) |  | $ | 2,116 |
State |  |  | 252 |  |  |  | 185 |  |  |  | 219 |
Foreign |  |  | 2,164 |  |  |  | 1,895 |  |  |  | 1,200 |
|  |  | 7,227 |  |  |  | 1,519 |  |  |  | 3,535 |
Deferred tax provision |  |  | 1,447 |  |  |  | 3,847 |  |  |  | 54 |
|  | $ | 8,674 |  |  | $ | 5,366 |  |  | $ | 3,589 |
The items accounting for the difference between income taxes computed at the Federal statutory tax rate and the provision for income taxes were as follows:
|  | 2014 |  |  | 2013 |  |  | 2012 |
US statutory rate |  |  | 34.5 | % |  |  | 34.0 | % |  |  | 34.1 | %
State taxes, net of Federal tax benefit |  |  | 1.0 |  |  |  | 2.0 |  |  |  | (0.1 | )
Foreign subsidiaries |  |  | (0.9 | ) |  |  | (2.2 | ) |  |  | (3.7 | )
Non-controlling interest |  |  | (3.5 | ) |  |  | (3.1 | ) |  |  | (7.3 | )
Valuation allowance |  |  | — |  |  |  | (1.0 | ) |  |  | — |
Other |  |  | 0.1 |  |  |  | 2.1 |  |  |  | (0.3 | )
|  |  | 31.2 | % |  |  | 31.8 | % |  |  | 22.7 | %
The components of deferred tax assets and (liabilities) were as follows (thousands of dollars):
|  | June 29, 2014 |  |  | June 30, 2013 |
Deferred income taxes-current: |  |  |  |  |  |  |  |
Repair and maintenance supply parts reserve |  | $ | 216 |  |  | $ | 185 |
Payroll-related accruals |  |  | 2,049 |  |  |  | 1,789 |
Environmental reserve |  |  | 517 |  |  |  | 523 |
Inventory reserve |  |  | 720 |  |  |  | 486 |
Allowance for doubtful accounts |  |  | 185 |  |  |  | 185 |
Accrued warranty |  |  | 966 |  |  |  | 703 |
Other |  |  | 1,018 |  |  |  | 396 |
|  | $ | 5,671 |  |  | $ | 4,267 |
Deferred income taxes-noncurrent: |  |  |  |  |  |  |  |
Accrued pension obligations |  | $ | (11,741 | ) |  | $ | (10,572 | )
Unrecognized pension and postretirement benefit plan liabilities |  |  | 10,038 |  |  |  | 11,305 |
Accumulated depreciation |  |  | (4,967 | ) |  |  | (4,256 | )
Stock-based compensation |  |  | 692 |  |  |  | 854 |
Postretirement obligations |  |  | 171 |  |  |  | 325 |
NOL/credit carry-forwards |  |  | 143 |  |  |  | 159 |
Other |  |  | 537 |  |  |  | 1,176 |
|  | $ | (5,127 | ) |  | $ | (1,009 | )
Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. State operating loss and credit carry-forwards at June 29, 2014 resulted in future benefits of approximately $143,000. These operating loss carry-forwards expire starting 2021 through 2024. We believe that it is more likely than not that the results of future operations will generate sufficient taxable income and foreign source income to realize the deferred tax assets. Foreign income before the provision for income taxes was $6.6 million in 2014, $6.0 million in 2013 and $5.3 million in 2012. No provision for Federal income taxes was made on earnings of foreign subsidiaries and joint ventures that are considered permanently invested or that would be offset by foreign tax credits upon distribution. Such undistributed earnings at June 29, 2014 were approximately $26.9 million. The total liability for unrecognized tax benefits was $1.4 million as of June 29, 2014 and $1.7 million as of June 30, 2013 and was included in Other Long-term Liabilities in the accompanying Consolidated Balance Sheets. This liability includes approximately $1.3 million of unrecognized tax benefits at June 29, 2014 and $1.5 million at June 30, 2013 and approximately $113,000 of accrued interest at June 29, 2014 and $195,000 at June 30, 2013. This liability does not include an amount for accrued penalties. The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate was approximately $861,000 at June 29, 2014 and $1.0 million at June 30, 2013. We recognize interest and penalties related to unrecognized tax benefits in the provision for income taxes. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended June 29, 2014 and June 30, 2013 (thousands of dollars):
|  | Year Ended |
|  | June 29, 2014 |  |  | June 30, 2013 |
Unrecognized tax benefits, beginning of year |  | $ | 1,510 |  |  | $ | 1,541 |
Gross increases – tax positions in prior years |  |  | — |  |  |  | — |
Gross decreases – tax positions in prior years |  |  | (215 | ) |  |  | (47 | )
Gross increases – current period tax positions |  |  | 59 |  |  |  | 51 |
Tax Years Closed |  |  | (65 | ) |  |  | (35 | )
Unrecognized tax benefits, end of year |  | $ | 1,289 |  |  | $ | 1,510 |
We or one of our subsidiaries files income tax returns in the United States (Federal), Wisconsin (state), Michigan (state) and various other states, Mexico and other foreign jurisdictions. Tax years open to examination by tax authorities under the statute of limitations include fiscal 2009 through 2014 for Federal, fiscal 2010 through 2014 for most states and calendar 2009 through 2013 for foreign jurisdictions. It is reasonably possible that certain unrecognized tax benefits may either be settled with taxing authorities or the statutes of limitations for these unrecognized tax benefits may lapse within the next 12 months, causing our gross unrecognized tax benefits to decrease by a range of $700,000 to $800,000.

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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 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 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=6907707&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=6907707&loc=d3e32537-109319 Reference 6: 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=6907707&loc=d3e32559-109319 + Details
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