INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Summary of Components of Income Before Taxes and Equity in Earnings of Equity-Method Investments

The components of income (loss) from continuing operations before income taxes and equity in net loss of equity-method investees were as follows:

	Fiscal Year Ended June 30,
	2022		2021		2020
Domestic	$	24,541	$	60,215	$	(29,339)
Foreign	78,950		48,578		63,167
Total	$	103,491	$	108,793	$	33,828

Summary of the Provision for Income Taxes

The provision for income taxes consisted of the following:

	Fiscal Year Ended June 30,
	2022		2021		2020
Current:
Federal	$	(197)	$	2,243	$	(44,595)
State and local	179		1,735		619
Foreign	13,714		27,253		14,021
	13,696		31,231		(29,955)
Deferred:
Federal	6,237		14,266		33,007
State and local	(463)		(10,064)		3,414
Foreign	3,246		5,660		(261)
	9,020		9,862		36,160
Total	$	22,716	$	41,093	$	6,205

Reconciliation of Expected Income Taxes to Actual

The reconciliation of the U.S. federal statutory rate to the Company’s effective rate on income before provision for income taxes is as follows:

	Fiscal Year Ended June 30,
	2022		%		2021		%		2020		%
Expected United States federal income tax at statutory rate	$	21,733	21.0	%	$	22,847	21.0	%	$	7,104	21.0	%
State income taxes, net of federal provision (benefit)	1,227		1.2	%	1,150		1.1	%	(668)		(1.9)	%
Foreign income at different rates	(576)		(0.6)	%	4,756		4.4	%	382		1.1	%
Impairment of intangible assets	—		—	%	13,466		12.4	%	—		—	%
Change in valuation allowance(a)	(220)		(0.2)	%	(5,921)		(5.4)	%	4,499		13.3	%
Change in reserves for uncertain tax positions	(997)		(1.0)	%	1,971		1.8	%	7,925		23.4	%
Change in foreign tax rate(b)	(341)		(0.3)	%	1,840		1.7	%	—		—	%
Loss on disposal of subsidiary			—	%	1,073		1.0	%	—		—	%
U.S. tax (benefit) on foreign earnings	2,404		2.3	%	(50)		(0.1)	%	7,449		22.0	%
CARES Act(c)			—	%	(1,116)		(1.0)	%	(25,668)		(75.9)	%
Other	(514)		(0.4)	%	1,077		1.0	%	5,182		15.3	%
Provision for income taxes	$	22,716	21.9	%	$	41,093	37.8	%	$	6,205	18.3	%

(a) The Company estimated that it would utilize certain of its state tax loss carryovers in the year ended June 30, 2021. This positive evidence, in addition to other positive evidence, resulted in the Company releasing the valuation allowance on its state deferred assets of $9,774. Further, in fiscal 2021, there was a release of a valuation allowance of $1,600 related to Danival; an increase in the valuation allowance of $5,051 related to the UK rate change; and a valuation allowance increase of $402 related to capital leases.

(b) In fiscal year 2021, the U.K. enacted into law a tax rate increase from 17% to 19% and on June 10, 2021, the U.K. enacted an increase in the corporate income tax rate to 25% effective April 1, 2023. The rate change impact in fiscal 2021 was primarily for the re-measurement of deferred tax liabilities on indefinite lived intangible assets.

(c) In fiscal 2020, the Company carried back NOLs generated in the June 30, 2019 tax year for five years, resulting in an income tax benefit of $18,949. The $18,949 income tax benefit represents the federal rate differential between 35% and 21%. In addition, there was an indirect tax benefit of $6,719 related to discontinued operations due to the CARES Act. Accordingly, the gross benefit recorded under the CARES Act in fiscal 2020 was $25,668 prior to the reserve under ASC 740-10. In fiscal 2021, the Company received the full refund with interest, with the net adjustment resulting in a benefit of $1,116.

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following:

	June 30, 2022		June 30, 2021
Noncurrent deferred tax assets (liabilities):
Basis difference on inventory	$	6,395	$	6,213
Reserves not currently deductible	11,675		15,261
Basis difference on intangible assets	(119,109)		(70,482)
Basis difference on property and equipment	(15,049)		(11,643)
Other comprehensive income	(726)		2,792
Net operating loss and tax credit carryforwards	50,077		43,960
Stock-based compensation	1,516		1,797
Unremitted earnings of foreign subsidiaries	(2,232)		(1,172)
Operating lease liability	25,423		14,165
Lease ROU assets	(23,905)		(12,971)
Other	7,782		7,048
Valuation allowances	(36,891)		(37,453)
Noncurrent deferred tax liabilities, net(1)	$	(95,044)	$	(42,485)

(1) Includes $0 and $154 of non-current deferred tax assets included within other assets on the June 30, 2022 and 2021 Consolidated Balance Sheets, respectively.

Summary of Changes in Valuation Allowances

The changes in valuation allowances against deferred income tax assets were as follows:

	Fiscal Year Ended June 30,
	2022		2021
Balance at beginning of year	$	37,453	$	41,941
Additions charged to income tax expense	784		5,601
Reductions credited to income tax expense	(1,004)		(11,520)
THWR purchase accounting	1,743		—
Currency translation adjustments	(2,085)		1,431
Balance at end of year	$	36,891	$	37,453

Schedule of Unrecognized Tax Benefits, Including Interest and Penalties Activity

Unrecognized tax benefits activity, including interest and penalties, is summarized below:

	Fiscal Year Ended June 30,
	2022		2021		2020
Balance at beginning of year	$	22,870	$	20,899	$	11,869
Additions based on tax positions related to the current year	273		343		636
Additions based on tax positions related to prior years	304		3,045		8,499
Reductions due to lapse in statute of limitations and settlements	(1,546)		(1,417)		(105)
Balance at end of year	$	21,901	$	22,870	$	20,899