INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2014

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):

	2014		2013		2012
United States	$	1,107	$	3,935	$	43,335
Foreign		6,989		5,302		1,421
	$	8,096	$	9,237	$	44,756

Provision (Benefit) for Income Taxes

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

	2014			2013			2012
Currently payable:
Federal	$	651		$	1,745		$	7,310
State		104			(234	)		188
Foreign		2,837			2,788			2,831
		3,592			4,299			10,329
Deferred:
Federal		1,309			1,122			7,653
State		(95	)		439			662
Foreign		(580	)		(874	)		(829	)
		634			687			7,486
	$	4,226		$	4,986		$	17,815

Components of Net Deferred Tax Assets

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

	2014			2013
Deferred tax assets:
Retirement plans and employee benefits	$	13,692		$	20,675
Foreign tax credit carryforwards		706			-
Federal tax credits		160			-
State net operating loss and other state credit carryforwards		348			91
Inventory		1,672			1,421
Reserves		2,578			2,388
Foreign NOL carryforwards		6,090			4,311
Accruals		681			822
Other assets		(54	)		98
		25,873			29,806
Deferred tax liabilities:
Property, plant and equipment		8,650			10,295
Intangibles		5,528			5,595
Other liabilities		711			439
		14,889			16,329
Valuation Allowance		(5,593	)		(3,724	)
Total net deferred tax assets	$	5,391		$	9,753

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):

	2014			2013			2012
U.S. federal income tax at 35%	$	2,754		$	3,104		$	15,595
Increases (reductions) in tax resulting from:
Foreign tax items		(291	)		88			169
State taxes		228			296			797
Valuation allowance		1,551			1,216			1,060
Research & development tax credits		(267	)		(526	)		(215	)
Change in prior year estimate		139			309			96
Section 199 deduction		(109	)		(84	)		(908	)
Goodwill impairment		-			-			1,292
Unrecognized tax benefits		183			539			(217	)
Other, net		38			44			146
	$	4,226		$	4,986		$	17,815

Reconciliation of Unrecognized Tax Benefits

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

	June30, 2014			June30, 2013
Unrecognized tax benefits, beginning of year	$	1,556		$	1,163
Additions based on tax positions related to the prior year		7			351
Additions based on tax positions related to the current year		173			361
Subtractions due to statutes closing		(1	)		(40	)
Settlements with taxing authorities		(132	)		(279	)
Unrecognized tax benefits, end of year	$	1,603		$	1,556