INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2023

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

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,
	2023		2022		2021
Domestic	$	(183,601)	$	24,541	$	60,215
Foreign	54,020		78,950		48,578
Total	$	(129,581)	$	103,491	$	108,793

Summary of the Provision for Income Taxes

The (benefit) provision for income taxes consisted of the following:


	Fiscal Year Ended June 30,
	2023		2022		2021
Current:
Federal	$	3,103	$	(197)	$	2,243
State and local	953		179		1,735
Foreign	7,719		13,714		27,253
	11,775		13,696		31,231
Deferred:
Federal	(23,551)		6,237		14,266
State and local	271		(463)		(10,064)
Foreign	(2,673)		3,246		5,660
	(25,953)		9,020		9,862
Total	$	(14,178)	$	22,716	$	41,093

Reconciliation of Expected Income Taxes to Actual

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 allowance	14,935		(11.5)	%	(220)		(0.2)	%	(5,921)		(5.4)	%

Change in reserves for uncertain tax positions	637		(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 earnings	1,946		(1.5)	%	2,404		2.3	%	(50)		(0.1)	%

CARES Act			—	%			—	%	(1,116)		(1.0)	%
Other	1,308		(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	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities consisted of the following:


	Fiscal Year Ended June 30,
	2023		2022

Noncurrent deferred tax assets (liabilities):
Basis difference on inventory	$	5,130	$	6,395
Reserves not currently deductible	11,045		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 carryforwards	50,807		50,077
Stock-based compensation	1,937		1,516
Unremitted earnings of foreign subsidiaries	(1,989)		(2,232)
Operating lease liability	20,203		25,423
Lease ROU assets	(19,113)		(23,905)
Other	9,833		7,782
Valuation allowances	(52,551)		(36,891)
Noncurrent deferred tax liabilities, net	$	(72,086)	$	(95,044)

Summary of Changes in Valuation Allowances

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


	Fiscal Year Ended June 30,
	2023		2022
Balance at beginning of year	$	36,891	$	37,453
Additions charged to income tax expense	23,212		784
Reductions credited to income tax expense	(8,514)		(1,004)
THWR purchase accounting	291		1,743
Currency translation adjustments	671		(2,085)
Balance at end of year	$	52,551	$	36,891

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,
	2023		2022		2021
Balance at beginning of year	$	21,901	$	22,870	$	20,899
Additions based on tax positions related to the current year	1,519		273		343
Additions based on tax positions related to prior years	815		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