Note 11. Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Income Taxes [Abstract]

Schedule of Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities as of June 30, 2020 and 2019, were as follows:

(Amounts in Thousands)	2020			2019
Deferred Tax Assets:
Receivables	$	145		$	105
Inventory	1,894			1,914
Employee benefits	224			193
Deferred compensation	5,338			6,149
Other current liabilities	265			1,275
Tax credit carryforwards	2,445			1,638
Goodwill	1,608			268
Net operating loss carryforward	2,398			2,339
Net foreign currency losses	—			11
Miscellaneous	4,020			2,970
Valuation Allowance	(1,637		)	(658		)
Total asset	$	16,700		$	16,204
Deferred Tax Liabilities:
Other intangible assets	$	1,313		$	1,412
Property and equipment	1,211			1,116
Net foreign currency gains	22			—
Miscellaneous	581			477
Total liability	$	3,127		$	3,005
Net Deferred Income Taxes	$	13,573		$	13,199

Schedule of Income before Income Tax, Domestic and Foreign

The components of income before taxes on income are as follows:

	Year Ended June 30
(Amounts in Thousands)	2020			2019		2018
United States	$	(6,117	)	$	11,191	$	5,609
Foreign	31,274			27,294		39,166
Total income before taxes on income	$	25,157		$	38,485	$	44,775

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is composed of the following items:

	Year Ended June 30
(Amounts in Thousands)	2020			2019			2018
Current Taxes:
Federal	$	(1,666	)	$	872		$	13,132
Foreign	8,479			7,545			11,982
State	(29		)	203			459
Total payable	$	6,784		$	8,620		$	25,573
Deferred Taxes:
Federal	$	99		$	67		$	5,015
Foreign	237			(1,177		)	(2,427		)
State	(1,138		)	(603		)	(776		)
Valuation allowance	979			20			638
Total deferred	$	177		$	(1,693	)	$	2,450
Total provision for income taxes	$	6,961		$	6,927		$	28,023

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the statutory U.S. income tax rate to the Company’s effective income tax rate follows:

	Year Ended June 30
	2020					2019					2018
(Amounts in Thousands)	Amount			%		Amount			%		Amount			%
Tax computed at U.S. federal statutory rate	$	5,283		21.0	%	$	8,082		21.0	%	$	12,582		28.1	%
State income taxes, net of federal income tax benefit	(1,128		)	(4.5	)	(320		)	(0.8	)	(408		)	(0.9	)
Foreign tax rate differential	714			2.8		313			0.8		(1,615		)	(3.6	)
Impact of foreign exchange rates on foreign income taxes	867			3.4		156			0.4		180			0.4
Non-deductible goodwill impairment	388			1.5		—			—		—			—
Valuation allowance	979			3.9		20			0.1		638			1.4
Research credit	(1,056		)	(4.2	)	(627		)	(1.6	)	(378		)	(0.8	)
Deemed repatriation	—			—		(416		)	(1.1	)	13,436			30.0
Revaluation of net deferred tax assets	—			—		(10		)	—		4,357			9.7
Global intangible low tax income	607			2.4		—			—		—			—
Other - net	307			1.4		(271		)	(0.8	)	(769		)	(1.7	)
Total provision for income taxes	$	6,961		27.7	%	$	6,927		18.0	%	$	28,023		62.6	%

Summary of Income Tax Contingencies

Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2020, 2019, and 2018 were as follows:

(Amounts in Thousands)	2020			2019			2018
Beginning balance - July 1	$	904		$	160		$	102
Tax positions related to prior fiscal years:
Additions	116			758			78
Reductions	—			—			(20		)
Tax positions related to current fiscal year:
Additions	—			—			—
Reductions	—			—			—
Settlements	—			—			—
Lapses in statute of limitations	(66		)	(14		)	—
Ending balance - June 30	$	954		$	904		$	160
Portion that, if recognized, would reduce tax expense and effective tax rate	$	262		$	214		$	137