Income Taxes (Tables)

12 Months Ended

Jun. 29, 2014

Provision (Benefit) for Income Taxes

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

	2014		2013			2012
Currently payable:
Federal	$	4,811	$	(561	)	$	2,116
State		252		185			219
Foreign		2,164		1,895			1,200
		7,227		1,519			3,535
Deferred tax provision		1,447		3,847			54
	$	8,674	$	5,366		$	3,589

Difference Between Income Taxes Computed at the Federal Statutory Tax Rate and the Provision for Income Taxes

The items accounting for the difference between income taxes computed at the Federal statutory tax rate and the provision for income taxes were as follows:

	2014			2013			2012
US statutory rate		34.5	%		34.0	%		34.1	%
State taxes, net of Federal tax benefit		1.0			2.0			(0.1	)
Foreign subsidiaries		(0.9	)		(2.2	)		(3.7	)
Non-controlling interest		(3.5	)		(3.1	)		(7.3	)
Valuation allowance		—			(1.0	)		—
Other		0.1			2.1			(0.3	)
		31.2	%		31.8	%		22.7	%

Components of Deferred Tax Assets and (Liabilities)

The components of deferred tax assets and (liabilities) were as follows (thousands of dollars):

	June 29, 2014			June 30, 2013
Deferred income taxes-current:
Repair and maintenance supply parts reserve	$	216		$	185
Payroll-related accruals		2,049			1,789
Environmental reserve		517			523
Inventory reserve		720			486
Allowance for doubtful accounts		185			185
Accrued warranty		966			703
Other		1,018			396
	$	5,671		$	4,267
Deferred income taxes-noncurrent:
Accrued pension obligations	$	(11,741	)	$	(10,572	)
Unrecognized pension and postretirement benefit plan liabilities		10,038			11,305
Accumulated depreciation		(4,967	)		(4,256	)
Stock-based compensation		692			854
Postretirement obligations		171			325
NOL/credit carry-forwards		143			159
Other		537			1,176
	$	(5,127	)	$	(1,009	)

Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows for the years ended June 29, 2014 and June 30, 2013 (thousands of dollars):

	Year Ended
	June 29, 2014			June 30, 2013
Unrecognized tax benefits, beginning of year	$	1,510		$	1,541
Gross increases – tax positions in prior years		—			—
Gross decreases – tax positions in prior years		(215	)		(47	)
Gross increases – current period tax positions		59			51
Tax Years Closed		(65	)		(35	)
Unrecognized tax benefits, end of year	$	1,289		$	1,510