INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2013

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):

	2013		2012		2011
United States	$	3,935	$	43,335	$	27,914
Foreign		5,302		1,421		4,115
	$	9,237	$	44,756	$	32,029

Provision (benefit) for income taxes

The provision (benefit) for income taxes is comprised of the following (in thousands):

	2013			2012			2011
Currently payable:
Federal	$	1,745		$	7,310		$	8,837
State		(234	)		188			373
Foreign		2,788			2,831			3,333
		4,299			10,329			12,543
Deferred:
Federal		1,122			7,653			(315	)
State		439			662			(97	)
Foreign		(874	)		(829	)		1,766
		687			7,486			1,354
	$	4,986		$	17,815		$	13,897

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).

	2013			2012
Deferred tax assets:
Retirement plans and employee benefits	$	20,675		$	25,316
State net operating loss and other state credit carryforwards		91			14
Inventory		1,421			1,283
Reserves		2,388			2,016
Research & development capitalization		-			63
Foreign NOL carryforwards		4,311			4,359
Accruals		822			543
Other assets		98			96
		29,806			33,690
Deferred tax liabilities:
Property, plant and equipment		10,295			8,780
Intangibles		5,595			5,869
Other liabilities		439			490
		16,329			15,139
Valuation Allowance		(3,724	)		(3,811	)
Total net deferred tax assets	$	9,753		$	14,740

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):

	2013			2012			2011
U.S. federal income tax at 35%	$	3,104		$	15,595		$	11,163
Increases (reductions) in tax resulting from:
Foreign tax items		88			169			1,119
State taxes		296			797			129
Valuation allowance		1,216			1,060			2,491
Change in prior year estimate		(526	)		(215	)		(157	)
Research & development tax credits		309			96			(387	)
Section 199 deduction		(84	)		(908	)		(735	)
Goodwill impairment		-			1,292			-
Other, net		583			( 71	)		274
	$	4,986		$	17,815		$	13,897

Reconciliation of unrecognized tax benefits

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

	June 30, 2013			June 30, 2012
Unrecognized tax benefits, beginning of year	$	1,163		$	1,431
Additions based on tax positions related to the prior year		351			-
Additions based on tax positions related to the current year		361			132
Reductions based on tax positions related to the prior year		-			-
Subtractions due to statutes closing		(40	)		(50	)
Settlements with taxing authorities		(279	)		(350	)
Unrecognized tax benefits, end of year	$	1,556		$	1,163