INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2012

INCOME TAXES [Abstract]

Earnings before income taxes and noncontrolling interest

United States and foreign earnings before income taxes and minority interest were as follows (in thousands):

	2012		2011		2010
United States	$	43,335	$	27,914	$	4,127
Foreign		1,421		4,115		(2,405	)
	$	44,756	$	32,029	$	1,722

Provision (benefit) for income taxes

The provision (benefit) for income taxes is comprised of the following (in thousands):
		2012			2011			2010
Currently payable:
Federal	$	7,241		$	8,704		$	490
State		188			373			302
Foreign		3,531			2,633			1,674
		10,960			11,710			2,466
Deferred:
Federal		7,653			(315	)		532
State		662			(97	)		(58	)
Foreign		(829	)		1,766			(1,948	)
		7,486			1,354			(1,474	)
	$	18,446		$	13,064		$	992

Components of the net deferred tax assets

The components of the net deferred tax asset as of June 30 are summarized in the table below (in thousands).

	2012			2011
Deferred tax assets:
Retirement plans and employee benefits	$	25,316		$	24,387
State net operating loss and other state credit carryforwards		14			240
Inventory		1,283			1,353
Reserves		2,016			1,810
Research & development capitalization		63			186
Foreign NOL carryforwards		4,359			3,379
Accruals		543			306
Other assets		96			124
		33,690			31,785
Deferred tax liabilities:
Property, plant and equipment		8,780			6,704
Intangibles		5,869			6,313
Other liabilities		490			361
		15,139			13,378
Valuation allowance		(3,811	)		(2,751	)
Total net deferred tax assets	$	14,740		$	15,656

Reconciliation of U.S. federal income taxes to actual income taxes

Following is a reconciliation of the applicable U.S. federal income taxes to the actual income taxes reflected in the statements of operations (in thousands):

	2012			2011			2010
U.S. federal income tax at 35%	$	15,595		$	11,163		$	540
Increases (reductions) in tax resulting from:
Foreign tax items		869			419			587
State taxes		797			129			160
Valuation allowance		1,060			2,491			48
Change in prior year estimate		96			(157	)		(216	)
Research & development tax credits		(215	)		(387	)		(184	)
Section 199 deduction		(908	)		(735	)		-
Goodwill impairment		1,292			-			-
Other, net		(140	)		141			57
	$	18,446		$	13,064		$	992

Reconciliation of unrecognized tax benefits

Below is a reconciliation of beginning and ending amount of unrecognized tax benefits (in thousands):

	June 30, 2012			June 30, 2011
Unrecognized tax benefits, beginning of year	$	853		$	808
Additions based on tax positions related to the prior year		-			6
Additions based on tax positions related to the current year		107			136
Reductions based on tax positions related to the prior year		-			-
Subtractions due to statutes closing		(50	)		(60	)
Settlements with taxing authorities		(350	)		(37	)
Unrecognized tax benefits, end of year	$	560		$	853