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Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2024
Income Tax Disclosure [Abstract] |
Provision (Benefit) for Income Taxes | The provision for income taxes consisted of the following (thousands of dollars):
|  | Years Ended |
|  | June 30, 2024 |  |  | July 2, 2023 |
Currently payable (recoverable): |  |  |  |  |  |
Federal |  | $ | 4,466 |  |  | $ | 1,035 |
State |  |  | 619 |  |  |  | 401 |
Foreign |  |  | 3,401 |  |  |  | 4,782 |
|  |  | 8,486 |  |  |  | 6,218 |
Deferred tax provision |  |  | (4,711 | ) |  |  | (4,937 | )
|  | $ | 3,775 |  |  | $ | 1,281 |
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 |
|  | June 30, 2024 |  |  | July 2, 2023 |
U.S. statutory rate |  |  | 21.0 | % |  |  | 21.0 | %
State taxes, net of federal tax benefit |  |  | 2.7 |  |  |  | 4.7 |
Foreign subsidiaries |  |  | 5.4 |  |  |  | — |
China non-resident capital gain tax |  |  | (1.6 | ) |  |  | (28.7 | )
U.S. tax impact on sale of VAST LLC |  |  | — |  |  |  | (9.7 | )
Valuation allowance |  |  | 2.6 |  |  |  | (18.8 | )
Return to provision adjustment |  |  | (6.1 | ) |  |  | 2.1 |
Global intangible low-taxed income |  |  | — |  |  |  | (8.0 | )
Research and development tax credit |  |  | (8.1 | ) |  |  | 19.4 |
Non-controlling interest |  |  | 2.3 |  |  |  | 4.0 |
Uncertain tax positions |  |  | — |  |  |  | (1.7 | )
Stock-based compensation |  |  | 0.7 |  |  |  | 0.3 |
Other |  |  | (0.2 | ) |  |  | (1.3 | )
|  |  | 18.7 | % |  |  | (16.7 | %)
Components of Deferred Tax (Liabilities) Assets | The components of deferred tax (liabilities) assets were as follows (thousands of dollars):
|  | June 30, 2024 |  |  | July 2, 2023 |
Unrecognized pension and postretirement benefit plan liabilities |  | $ | 296 |  |  | $ | 368 |
Accrued warranty |  |  | 2,319 |  |  |  | 2,255 |
Payroll-related accruals |  |  | 4,769 |  |  |  | 4,094 |
Research and development costs |  |  | 8,598 |  |  |  | 5,541 |
Capital loss carryforward related to sale of interest in VAST LLC |  |  | 1,677 |  |  |  | 1,403 |
Stock-based compensation |  |  | 281 |  |  |  | 414 |
Inventory reserve |  |  | 1,712 |  |  |  | 1,633 |
Environmental reserve |  |  | 313 |  |  |  | 327 |
Repair and maintenance supply parts reserve |  |  | 215 |  |  |  | 222 |
Allowance for credit losses |  |  | 113 |  |  |  | 118 |
Lease Liability |  |  | 931 |  |  |  | 1,049 |
Right of Use Assets |  |  | (856 | ) |  |  | (1,049 | )
Credit carry-forwards |  |  | 1,899 |  |  |  | 1,628 |
Postretirement obligations |  |  | 104 |  |  |  | 64 |
Accumulated depreciation |  |  | (3,455 | ) |  |  | (4,387 | )
Accrued pension obligations |  |  | 444 |  |  |  | 415 |
Joint ventures |  |  | 440 |  |  |  | 47 |
Other |  |  | 362 |  |  |  | 1,078 |
|  |  | 20,162 |  |  |  | 15,220 |
Valuation allowance |  |  | (2,569 | ) |  |  | (1,601 | )
Net deferred tax assets |  | $ | 17,593 |  |  | $ | 13,619 |
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 year s ended June 30, 2024 and July 2, 2023 (thousands of dollars):
|  | Years Ended |
|  | June 30, 2024 |  |  | July 2, 2023 |
Unrecognized tax benefits, beginning of year |  | $ | 1,395 |  |  | $ | 1,314 |
Gross increases – tax positions in prior years |  |  | 41 |  |  |  | 50 |
Gross decreases – tax positions in prior years |  |  | (59 | ) |  |  | — |
Gross increases – current period tax positions |  |  | 427 |  |  |  | 385 |
Tax years closed |  |  | (387 | ) |  |  | (354 | )
Unrecognized tax benefits, end of year |  | $ | 1,417 |  |  | $ | 1,395 |

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