v3.26.1
Note 12. Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Deferred Tax Assets and Liabilities
The components of the deferred tax assets and liabilities as of June 30, 2026 and 2025, were as follows:
(Amounts in Thousands)20262025
Deferred Tax Assets:
Receivables$751 $336 
Inventory2,218 2,252 
Employee benefits341 322 
Deferred compensation8,445 7,224 
Capitalized research and development7,916 10,180 
Tax credit carryforwards9,928 9,650 
Capital Loss
3,587 5,259 
Net operating loss carryforward3,916 4,676 
Net foreign currency losses131 90 
Business interest carryforward5,059 6,919 
Operating Leases3,868 — 
Miscellaneous6,280 4,672 
Valuation Allowance(16,016)(16,418)
Total asset$36,424 $35,162 
Deferred Tax Liabilities:
Property and equipment4,082 8,101 
Right-of-use Asset2,433 — 
Goodwill
594 535 
Miscellaneous3,760 1,336 
Total liability$10,869 $9,972 
Net Deferred Income Taxes$25,555 $25,190 
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)202620252024
United States$2,551 $(9,681)$(35,055)
Foreign50,670 35,910 60,254 
Total income before taxes on income$53,221 $26,229 $25,199 
Schedule of Components of Income Tax Expense (Benefit)
The provision for income taxes is composed of the following items:
Year Ended June 30
(Amounts in Thousands)202620252024
Current Taxes:
Federal$(73)$(2,034)$2,024 
Foreign24,196 12,097 12,372 
State429 (1,688)587 
Total payable$24,552 $8,375 $14,983 
Deferred Taxes:
Federal$3,933 $(3,344)$(12,280)
Foreign(2,960)(1,701)91 
State138 (1,261)(3,094)
Valuation allowance(402)7,176 4,988 
Total deferred$709 $870 $(10,295)
Total provision for income taxes$25,261 $9,245 $4,688 
Schedule of Cash Flow, Supplemental Disclosures
The amount of income taxes paid (net of refunds) were:
Year Ended June 30
(Amounts in Thousands)2026
U.S. Federal$3,162 
State286 
Foreign
   Mexico$4,226 
   Poland875 
   Thailand758 
   China4,913 
   Other$(2)
Total$14,218 
Schedule of Effective Income Tax Rate Reconciliation
The Company adopted ASU 2023-09 prospectively for the year ended June 30, 2026, and a reconciliation of the income tax provision to the amount computed applying the U.S. federal statutory tax rate of 21% to income (loss) before income taxes was as follows:
Year Ended June 30
2026
Amount%
Tax Computed at U.S. Statutory Tax Rate$11,176 21.0%
State and Local Income Taxes, Net of Federal Income Tax (1)
575 1.1
Foreign Tax Effect
China
Statutory rate difference between China and United States874 1.6
Other(433)(0.8)
Mexico
Impact of foreign exchange rate699 1.3
Non-Deductible Employee Benefits815 1.5
Inflation Adjustment766 1.4
Fixed Assets basis difference(623)(1.2)
Other670 1.3
Poland(2)
(727)(1.3)
Thailand(2)
(949)(1.8)
Romania
Minimum Tax809 1.5
Other15 —
Netherlands
Withholding Taxes(3)
8,958 16.8
Other18 —
Effects of Cross Border Tax Laws
Global Intangible low-taxed income (4)
2,982 5.6
Other96 0.2
Tax Credits
Research and Development tax credits(206)(0.4)
Other165 0.3
Change in Valuation Allowance(5)
Valuation Allowance - Capital Loss1,089 2.1
Valuation Allowance - Capitalized Interest Expense(1,668)(3.1)
Non Taxable or Nondeductible Items
Executive Compensation930 1.8
Other(474)(0.9)
Changes in unrecognized tax benefits— —
Other Adjustments(296)(0.5)
Total$25,261 47.5%
(1)For the year ended June 30, 2026, state taxes in California, Florida, Michigan, and Indiana comprised the majority (greater than 50%) of the tax effect in this category.
(2)All rate reconciling items for Poland and Thailand are separately below posting threshold.
(3)During fiscal year 2026, the Company recorded dividend withholding tax expense in Netherlands of $8.9 million. This includes $4.4 million and $4.5 million of dividend withholding taxes and related interest from Poland and China, respectively. The dividend withholding taxes from Poland relate to a 2018 dividend, and reflect a 19% dividend withholding tax rate. The expense was recorded in fiscal year 2026 following an unfavorable court decision. The Company may pursue other means of recovery. The dividend withholding taxes from China include $1.3 million on dividends paid in fiscal year 2026 and $3.2 million on dividends paid from fiscal years 2021 through 2025. The withholding tax expense reflects a 10% dividend on the fiscal year 2026 dividend as well as the fiscal year 2021 through 2025 dividends, applied retroactively, following a rate settlement reached in 2026.
(4)The effect of Global Intangible low-taxed income is presented net of foreign tax credit for the year ended June 30, 2026.
(5)In 2026, we released $1.9 million of valuation allowance on capitalized interest expense and recorded an additional $1.5 million valuation allowance on capitalized loss carryforward & state income tax credits.
A reconciliation of the income tax provision, prior to the adoption of ASU 2023-09, to the amount computed applying the U.S. federal statutory tax rate of 21% to income (loss) before income taxes was as follows:
Year Ended June 30
20252024
(Amounts in Thousands)Amount%Amount%
Tax computed at U.S. federal statutory rate$5,508 21.0%$5,292 21.0%
State income taxes, net of federal income tax benefit(2,810)(10.7)(2,433)(9.7)
Foreign tax rate differential2,267 8.6 592 2.3 
Impact of foreign exchange rates on foreign income taxes637 2.4 (995)(3.9)
Valuation allowance7,176 27.4 4,988 19.8 
Asset impairment/Disposal
(4,732)(18.0)(2,882)(11.4)
Research credit(1,479)(5.6)(1,150)(4.6)
Global intangible low tax income2,913 11.1 1,339 5.3 
Non-deductible compensation244 0.9 385 1.5 
Other - net(479)(1.9)(448)(1.7)
Total provision for income taxes$9,245 35.2%$4,688 18.6%
Schedule of Unrecognized Tax Benefits Roll Forward
Changes in the unrecognized tax benefit, excluding accrued interest and penalties, during fiscal years 2026, 2025, and 2024 were as follows:
(Amounts in Thousands)202620252024
Beginning balance - July 1$166 $216 $408 
Tax positions related to prior fiscal years:
Additions17 5 10 
  Reductions— — — 
Tax positions related to current fiscal year:
Additions— — — 
Reductions— — — 
Settlements— — — 
Lapses in statute of limitations— (55)(202)
Ending balance - June 30$183 $166 $216 
Portion that, if recognized, would reduce tax expense and effective tax rate$145 $131 $182