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Income Taxes (Tables)

12 Months Ended

Jul. 02, 2023

Income Tax Disclosure [Abstract]

Provision (Benefit) for Income Taxes

The provision for income taxes consisted of the following (thousands of dollars):

		Years Ended
		July 2, 2023				July 3, 2022
Currently payable (recoverable):
Federal		$	1,035			$	(691	)
State			401				161
Foreign			4,782				2,931
			6,218				2,401
Deferred tax provision			(4,937	)			(1,986	)
		$	1,281			$	415

Difference Between Income Taxes Computed at the Federal Statutory Tax Rate and the Provision for Income Taxes

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:

		Years Ended
		July 2, 2023				July 3, 2022
U.S. statutory rate			21.0	%			21.0	%
State taxes, net of Federal tax benefit			4.7				0.4
Foreign subsidiaries			—				8.4
China non-resident capital gain tax			(28.7	)			—
U.S. tax impact on sale of VAST LLC			(9.7	)			—
Valuation allowance			(18.8	)			—
Return to provision adjustment			2.1				(11.1	)
Global intangible low-taxed income			(8.0	)			0.5
Research and development tax credit			19.4				(9.7	)
Solar investment tax credit			—				(0.8	)
Non-controlling interest			4.0				(1.8	)
Uncertain tax positions			(1.7	)			(1.4	)
Stock based compensation			0.3				(1.3	)
Other			(1.3	)			0.3
			(16.7	%)			4.5	%

Components of Deferred Tax (Liabilities) Assets

The components of deferred tax (liabilities) assets were as follows (thousands of dollars):

		July 2, 2023				July 3, 2022
Unrecognized pension and postretirement benefit    plan liabilities		$	368			$	579
Accrued warranty			2,255				423
Payroll-related accruals			4,094				3,085
Research and development costs			5,541				—
Capital loss carryforward related to sale of interest in VAST LLC			1,403				—
Stock-based compensation			414				360
Inventory reserve			1,633				1,010
Environmental reserve			327				327
Repair and maintenance supply parts reserve			222				222
Allowance for doubtful accounts			118				118
Lease Liability			1,049				710
Right of Use Assets			(1,049	)			(710	)
Credit carry-forwards			1,628				2,986
Postretirement obligations			64				8
Accumulated depreciation			(4,387	)			(3,886	)
Accrued pension obligations			415				504
Joint ventures			47				899
Other			1,078				604
			15,220				7,239
Valuation allowance			(1,601	)			(158	)
Net deferred tax assets		$	13,619			$	7,081

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended July 2, 2023 and July 3, 2022 (thousands of dollars):

		Years Ended
		July 2, 2023				July 3, 2022
Unrecognized tax benefits, beginning of year		$	1,314			$	1,458
Gross increases – tax positions in prior years			50				13
Gross decreases – tax positions in prior years			—				(19	)
Gross increases – current period tax positions			385				241
Tax years closed			(354	)			(379	)
Unrecognized tax benefits, end of year		$	1,395			$	1,314

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