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Income Taxes (Tables)

12 Months Ended

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 years 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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