INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2016

Income (loss) from operations before income taxes in fiscal 2016, 2015 and 2014 is presented below:



	Year Ended June 30,
	2016			2015			2014
United States	$	(153.6	)	$	(173.7	)	$	(119.1	)
Foreign	292.4			407.0			75.0
Total	$	138.8		$	233.3		$	(44.1	)

Schedule of components of income tax expense (benefit)

The components of the Company’s total (benefit) provision for income taxes during fiscal 2016, 2015 and 2014 are presented below:



	Year Ended June 30,
	2016			2015			2014
(Benefit) provision for income taxes:
Current:
Federal	$	(30.0	)	$	3.7		$	5.6
State and local	(2.7		)	3.3			2.1
Foreign	131.5			54.1			50.8
Total	98.8			61.1			58.5
Deferred:
Federal	(91.7		)	(71.0		)	(30.6		)
State and local	(9.9		)	(12.0		)	(0.7		)
Foreign	(37.6		)	(4.2		)	(7.1		)
Total	(139.2		)	(87.2		)	(38.4		)
(Benefit) provision for income taxes	$	(40.4	)	$	(26.1	)	$	20.1

Schedule of effective income tax rate reconciliation

The reconciliation of the U.S. Federal statutory tax rate to the Company’s effective income tax rate during fiscal 2016, 2015 and 2014 is presented below:



	Year Ended June 30,
	2016			2015			2014
Income (loss) before income taxes	$	138.8		$	233.3		$	(44.1	)
Provision (benefit) for income taxes at statutory rate	$	48.5		$	81.7		$	(15.4	)
State and local taxes—net of federal benefit	(8.3		)	(5.6		)	0.9
Foreign tax differentials	(50.8		)	(74.4		)	(53.0		)
Change in valuation allowances	(7.6		)	(6.6		)	36.1
Change in unrecognized tax benefit	45.8			(16.0		)	(24.4		)
Asset impairment charges	—			—			67.4
U.S. audit settlement, net	(83.2		)	(19.2		)	—
Share-based compensation	—			—			1.8
Permanent differences—net	4.7			10.6			1.8
Amortization on intercompany sale	5.7			—			—
Other	4.8			3.4			4.9
(Benefit) provision for income taxes	$	(40.4	)	$	(26.1	)	$	20.1
Effective income tax rate	(29.1		)%	(11.2		)%	(45.6		)%

Schedule of deferred tax assets and liabilities

Significant components of Deferred income tax assets and liabilities as of June 30, 2016 and 2015 are presented below:



	June 30, 2016			June 30, 2015
Deferred income tax assets:
Inventories	$	19.3		$	14.0
Accruals and allowances	53.0			77.0
Sales returns	13.6			15.9
Share-based compensation	14.6			26.1
Employee benefits	64.8			38.4
Net operating loss carry forwards and tax credits	237.7			92.4
Other	23.8			27.2
Less: valuation allowances	(179.2		)	(81.9		)
Net deferred income tax assets	247.6			209.1
Deferred income tax liabilities:
Intangible assets	367.3			436.0
Unrealized gain	49.1			—
Licensing rights	26.6			6.3
Other	22.5			29.7
Deferred income tax liabilities	465.5			472.0
Net deferred income tax liabilities	$	(217.9	)	$	(262.9	)

Expirations of tax loss carryforwards

The expirations of tax loss carry forwards, amounting to $600.2 as of June 30, 2016, in each of the fiscal years ending June 30, are presented below:



Fiscal Year Ending June 30	United States		Western Europe		Rest of World		Total
2017	$	—	$	—	$	27.2	$	27.2
2018	—		—		29.7		29.7
2019	—		—		4.1		4.1
2020	—		—		67.6		67.6
2021 and thereafter	402.6		28.2		40.8		471.6
Total	$	402.6	$	28.2	$	169.4	$	600.2

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of UTBs is presented below:



	Year Ended June 30,
	2016			2015			2014
UTBs—July 1	$	342.6		$	400.5		$	331.4
Additions based on tax positions related to the current year	60.4			51.6			29.5
Additions for tax positions of prior years	—			6.4			91.9
Reductions for tax positions of prior years	(70.5		)	(60.3		)	(9.9		)
Settlements	(72.7		)	(29.7		)	(33.8		)
Lapses in statutes of limitations	(37.9		)	(14.2		)	(11.6		)
Foreign currency translation	7.0			(11.7		)	3.0
UTBs—June 30	$	228.9		$	342.6		$	400.5