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INCOME TAXES
 12 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of (loss) income from continuing operations before income taxes and equity in net loss of equity-method investees were as follows:
Fiscal Year Ended June 30,
202320222021
Domestic$(183,601)$24,541 $60,215 
Foreign54,020 78,950 48,578 
Total$(129,581)$103,491 $108,793 

The (benefit) provision for income taxes consisted of the following:
Fiscal Year Ended June 30,
202320222021
Current:
Federal$3,103 $(197)$2,243 
State and local953 179 1,735 
Foreign7,719 13,714 27,253 
11,775 13,696 31,231 
Deferred:
Federal(23,551)6,237 14,266 
State and local271 (463)(10,064)
Foreign(2,673)3,246 5,660 
(25,953)9,020 9,862 
Total$(14,178)$22,716 $41,093 

Cash paid for income taxes, net of refunds, during the fiscal years ended June 30, 2023 and June 30, 2022 amounted to $14,765 and $19,235, respectively. For the fiscal year ended June 30, 2021, the Company received net tax refunds of $32,998 including a $53,817 tax loss carryback claim under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) which allowed for, among other provisions, a five-year carryback of net operating losses (“NOLs”) for 2018-2020 offset by taxes paid in other jurisdictions.
The reconciliation of the U.S. federal statutory rate to the Company’s effective rate on (loss) income before (benefit) provision for income taxes is as follows:

Fiscal Year Ended June 30,
2023%2022%2021%
Expected United States federal income tax at statutory rate$(27,233)21.0 %$21,733 21.0 %$22,847 21.0 %
State income taxes, net of federal (benefit) provision(4,866)3.8 %1,227 1.2 %1,150 1.1 %
Foreign income at different rates(905)0.7 %(576)(0.6)%4,756 4.4 %
Impairment of intangible assets— — %— — %13,466 12.4 %
Change in valuation allowance14,935 (11.5)%(220)(0.2)%(5,921)(5.4)%
Change in reserves for uncertain tax positions637 (0.5)%(997)(1.0)%1,971 1.8 %
Change in foreign tax rate— — %(341)(0.3)%1,840 1.7 %
Loss on disposal of subsidiary
— %— %1,073 1.0 %
U.S. tax (benefit) on foreign earnings1,946 (1.5)%2,404 2.3 %(50)(0.1)%
CARES Act— %— %(1,116)(1.0)%
Other1,308 (1.1)%(514)(0.4)%1,077 1.0 %
(Benefit) provision for income taxes$(14,178)10.9 %$22,716 21.9 %$41,093 37.8 %
The Company accounts for global intangible low-taxed income (“GILTI”) tax as a current period cost and recorded expense of $2,189, $1,119, and nil, during the fiscal years ended June 30, 2023, 2022 and 2021, respectively. Such amounts are included in the U.S. tax benefit on foreign earnings in the effective tax rate which also includes tax expense related to Subpart F income and unremitted earnings in total.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Deferred tax assets and liabilities consisted of the following:
Fiscal Year Ended June 30,
20232022
Noncurrent deferred tax assets (liabilities):
Basis difference on inventory$5,130 $6,395 
Reserves not currently deductible11,045 11,675 
Basis difference on intangible assets(73,635)(119,109)
Basis difference on property and equipment(20,255)(15,049)
Other comprehensive income(3,498)(726)
Net operating loss and tax credit carryforwards50,807 50,077 
Stock-based compensation1,937 1,516 
Unremitted earnings of foreign subsidiaries(1,989)(2,232)
Operating lease liability20,203 25,423 
Lease ROU assets(19,113)(23,905)
Other9,833 7,782 
Valuation allowances(52,551)(36,891)
Noncurrent deferred tax liabilities, net$(72,086)$(95,044)

At June 30, 2023 and 2022, the Company had U.S. Federal NOL carryforwards of approximately $63,559 and $79,890, respectively, certain of which will not expire until 2036. Certain of these federal loss carryforwards are subject to Internal Revenue Code Section 382, which imposes limitations on utilization following certain changes in ownership of the entity generating the loss carryforward. The Company had foreign NOL carryforwards of approximately $11,351 and $12,108 at June 30, 2023 and 2022, respectively, the majority of which are indefinite lived.

For the year ended June 30, 2023, the Company determined that $147,300 of foreign earnings are not permanently reinvested with a corresponding deferred tax liability of $1,989. The Company continues to reinvest $792,262 of undistributed earnings of its foreign subsidiaries and may be subject to additional foreign withholding taxes and U.S. state income taxes if it reverses its indefinite reinvestment assertion on these foreign earnings in the future. All other outside basis differences not related to earnings were impractical to account for at this period of time and are currently considered as being permanent in duration.

The Company evaluates the realizability of deferred tax assets on a jurisdictional basis at each reporting date. Accounting for income taxes requires that a valuation allowance be established when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In circumstances where there is sufficient negative evidence indicating that the deferred tax assets are not more likely than not realizable, the Company establishes a valuation allowance. The Company recorded valuation allowances in the amounts of $52,551 and $36,891 at June 30, 2023 and 2022, respectively.

The changes in valuation allowances against deferred income tax assets were as follows:
Fiscal Year Ended June 30,
20232022
Balance at beginning of year$36,891 $37,453 
Additions charged to income tax expense23,212 784 
Reductions credited to income tax expense(8,514)(1,004)
THWR purchase accounting291 1,743 
Currency translation adjustments671 (2,085)
Balance at end of year$52,551 $36,891 
Unrecognized tax benefits activity, including interest and penalties, is summarized below:
Fiscal Year Ended June 30,
202320222021
Balance at beginning of year$21,901 $22,870 $20,899 
Additions based on tax positions related to the current year1,519 273 343 
Additions based on tax positions related to prior years815 304 3,045 
Reductions due to lapse in statute of limitations and settlements(268)(1,546)(1,417)
Balance at end of year$23,967 $21,901 $22,870 

As of June 30, 2023, the Company had $23,967 of unrecognized tax benefits, of which $20,155 represents an amount that, if recognized, would impact the effective tax rate in future periods. As of June 30, 2022, the Company had $21,901 of unrecognized tax benefits, of which $18,089 represents the amount that, if recognized, would impact the effective tax rate in future periods. As of June 30, 2021, the Company had $22,870 of unrecognized tax benefits of which $19,058 would impact the effective income tax rate in future periods. Accrued liabilities for interest and penalties were $3,768 and $2,952 at June 30, 2023 and 2022, respectively.

The Company and its subsidiaries file income tax returns in the U.S. Federal jurisdiction, various U.S. state jurisdictions and several foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to fiscal 2014. However, to the extent we generated NOLs or tax credits in closed tax years, future use of the NOL or tax credit carryforward balance would be subject to examination within the relevant statute of limitations for the year in which utilized. The Company is no longer subject to tax examinations in the United Kingdom for years prior to fiscal 2021. Given the uncertainty regarding when tax authorities will complete their examinations and the possible outcomes of their examinations, a current estimate of the range of reasonably possible significant increases or decreases of income tax that may occur within the next twelve months cannot be made. Although there are various tax audits currently ongoing, the Company does not believe the ultimate outcome of such audits will have a material impact on the Company’s consolidated financial statements.