Entity information:
Income Taxes
The sources of pretax income (loss) are as follows: 
 
 
Twelve Months Ended
 
 
June 30,
2017
 
June 30,
2016
 
June 30,
2015
 
 
(In thousands)
Domestic
 
$
19,763

 
$
33,986

 
$
(4,001
)
Foreign
 
(17,317
)
 
5,667

 
12,193

Total
 
$
2,446

 
$
39,653

 
$
8,192


For fiscal 2017, 2016 and 2015, domestic pretax income included a gain of $0.3 million and losses of $3.3 million and $19.1 million, respectively, related to our acquired EPC joint venture project. The Company consolidates the acquired EPC joint venture project and reports a noncontrolling interest. Accordingly, the Company's pretax income includes the noncontrolling interest holder's share of the acquired EPC project loss for which the Company does not receive a tax benefit.
The components of the provision for income tax expense (benefit) are as follows: 
 
 
Twelve Months Ended
 
 
June 30,
2017
 
June 30,
2016
 
June 30,
2015
 
 
(In thousands)
Current:
 
 
 
 
 
 
Federal
 
$
6,522

 
$
9,930

 
$
7,535

State
 
(185
)
 
2,570

 
1,606

Foreign
 
(1,509
)
 
(262
)
 
1,791

 
 
4,828

 
12,238

 
10,932

Deferred:
 
 
 
 
 
 
Federal
 
618

 
887

 
1,803

State
 
101

 
67

 
(362
)
Foreign
 
(3,239
)
 
924

 
(2,283
)
 
 
(2,520
)
 
1,878

 
(842
)
 
 
$
2,308

 
$
14,116

 
$
10,090


The difference between the expected income tax provision applying the domestic federal statutory tax rate and the reported income tax provision is as follows: 
 
 
Twelve Months Ended
 
 
June 30,
2017
 
June 30,
2016
 
June 30,
2015
 
 
(In thousands)
Expected provision for Federal income taxes at the statutory rate
 
$
857

 
$
13,879

 
$
2,868

State income taxes, net of Federal benefit
 
808

 
1,827

 
1,023

Deemed foreign dividends
 
—

 
—

 
1,462

Charges without tax benefit
 
1,741

 
2,187

 
1,478

Change in valuation allowance
 
1,295

 
311

 
25

Excess tax benefits on stock-based compensation(1)
 
(496
)
 
—

 
—

IRC S199 deduction
 
(749
)
 
(999
)
 
—

Foreign tax credits
 
—

 
—

 
(1,433
)
Research and development and other tax credits
 
(1,626
)
 
(1,928
)
 
(1,197
)
Foreign tax differential
 
1,496

 
(815
)
 
(529
)
Noncontrolling interest
 
(112
)
 
1,164

 
6,669

Change in uncertain tax positions
 
(22
)
 
(569
)
 
—

Adjustment to tax accounts
 
(924
)
 
(786
)
 
—

Other
 
40

 
(155
)
 
(276
)
Provision for income taxes
 
$
2,308

 
$
14,116

 
$
10,090


 
 
 
 
 
(1)
This represents the amount recognized for excess tax benefits upon the vesting or exercise of nonvested deferred share awards and stock options, respectively, for which the Company expects to receive an income tax deduction. Upon the adoption of ASU 2016-09, excess tax benefits and tax deficiencies are recognized as part of the provision for income taxes. See Note 1 - Summary of Significant Accounting Policies, Recently Issued Accounting Standards, ASU 2016-09, for more information about the new accounting standard.

Significant components of the Company’s deferred tax assets and liabilities are as follows: 
 
 
June 30,
2017
 
June 30,
2016
 
 
(In thousands)
Deferred tax assets:
 
 
 
 
Warranty reserve
 
$
312

 
$
195

Bad debt reserve
 
3,869

 
3,188

Paid-time-off accrual
 
821

 
865

Insurance reserve
 
2,284

 
2,461

Legal reserve
 
82

 
87

Net operating loss benefit and credit carryforwards
 
9,332

 
8,207

Valuation allowance
 
(1,719
)
 
(424
)
Accrued compensation and pension
 
1,346

 
1,268

Stock compensation expense on nonvested deferred shares
 
3,731

 
3,472

Accrued losses
 
340

 
274

Foreign currency translation and other
 
1,080

 
1,041

Total deferred tax assets
 
21,478

 
20,634

Deferred tax liabilities:
 
 
 
 
Tax over book depreciation
 
11,446

 
11,504

Tax over book amortization
 
3,325

 
2,588

Branch future liability
 
2,538

 
2,889

Prepaid insurance
 
—

 
396

Receivable holdbacks and other
 
912

 
2,736

Total deferred tax liabilities
 
18,221

 
20,113

Net deferred tax asset
 
$
3,257

 
$
521



As reported in the consolidated balance sheets:
 
 
June 30,
2017
 
June 30,
2016
 
 
(In thousands)
Deferred income tax assets
 
3,385

 
3,719

Deferred income tax liabilities
 
(128
)
 
(3,198
)
Net deferred tax asset
 
$
3,257

 
$
521


The Company has state net operating loss carryforwards, state tax credit carryforwards, federal foreign tax credit carryforwards, foreign net operating loss carryforwards and foreign tax credit carryforwards.  The valuation allowance at June 30, 2017 and June 30, 2016 reduces the recognized tax benefit of these carryforwards to an amount that is more likely than not to be realized.  These carryforwards will generally expire as shown below:
Tax Credit Carryforwards
Expiration Period
Amount (in thousands)
State tax credits
June 2017 to June 2032
$
498

Federal foreign tax credits
June 2018 to June 2024
$
2,348

Foreign tax credits
June 2034 to June 2036
$
612


Operating Loss Carryforwards
Expiration Period
Amount (in thousands)
State net operating losses
June 2022 to June 2037
$
19,015

Foreign net operating losses
December 2028; June 2031 to June 2036
$
15,454


In general, it is the practice and intention of the Company to reinvest the earnings of its foreign subsidiaries in its foreign operations. Such amounts become subject to United States taxation upon the remittance of dividends and under certain other circumstances. As of June 30, 2017, unremitted earnings of foreign subsidiaries, which have been or are intended to be permanently invested, are approximately $1.0 million. We anticipate that any deferred tax liability related to the investment in these foreign subsidiaries could be offset by foreign tax credits.
The Company files tax returns in multiple domestic and foreign taxing jurisdictions. With a few exceptions, the Company is no longer subject to examination by taxing authorities through fiscal 2012. At June 30, 2017, the Company updated its evaluation of its open tax years in all known jurisdictions. Based on this evaluation, the Company did not identify any material uncertain tax positions. We have recorded a $0.6 million liability as of June 30, 2017 for unrecognized tax positions and the payment of related interest and penalties. We treat the related interest and penalties as income tax expense. Due to the uncertainties related to these tax matters, we are unable to make a reasonably reliable estimate as to when cash settlement with a taxing authority will occur.