XML 65 R48.htm IDEA: XBRL DOCUMENT v3.7.0.1
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Schedule of income before income tax
(Loss) income from operations before income taxes in fiscal 2017, 2016 and 2015 is presented below:
 
Year Ended June 30,

2017
 
2016
 
2015
United States
$
(524.8
)
 
$
(153.6
)
 
$
(173.7
)
Foreign
(133.2
)
 
292.4

 
407.0

Total
$
(658.0
)
 
$
138.8

 
$
233.3
Schedule of components of income tax expense (benefit)
The components of the Company’s total (benefit) provision for income taxes during fiscal 2017, 2016 and 2015 are presented below:
 
Year Ended June 30,

2017
 
2016
 
2015
(Benefit) provision for income taxes:
 
 
 
 
 
Current:
 
 
 
 
 
Federal
$
0.4

 
$
(30.0
)
 
$
3.7

State and local
1.1

 
(2.7
)
 
3.3

Foreign
129.0

 
131.5

 
54.1

Total
130.5

 
98.8

 
61.1

Deferred:
 
 
 
 
 
Federal
(256.9
)
 
(91.7
)
 
(71.0
)
State and local
(24.2
)
 
(9.9
)
 
(12.0
)
Foreign
(108.9
)
 
(37.6
)
 
(4.2
)
Total
(390.0
)
 
(139.2
)
 
(87.2
)
Benefit for income taxes
$
(259.5
)
 
$
(40.4
)
 
$
(26.1
)
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 2017, 2016 and 2015 is presented below:
 
Year Ended June 30,

2017
 
2016
 
2015
Income (loss) before income taxes
$
(658.0
)
 
$
138.8

 
$
233.3

(Benefit) provision for income taxes at statutory rate
$
(230.3
)
 
$
48.5

 
$
81.7

State and local taxes—net of federal benefit
(15.0
)
 
(8.3
)
 
(5.6
)
Foreign tax differentials
53.3

 
(50.8
)
 
(74.4
)
Change in valuation allowances
(108.2
)
 
(7.6
)
 
(6.6
)
Change in unrecognized tax benefit
25.6

 
45.8

 
(16.0
)
U.S. audit settlement, net
—

 
(83.2
)
 
(19.2
)
Permanent differences—net
1.2

 
4.7

 
10.6

Amortization on intercompany sale
5.7

 
5.7

 
—

Other
8.2

 
4.8

 
3.4

(Benefit) provision for income taxes
$
(259.5
)
 
$
(40.4
)
 
$
(26.1
)
Effective income tax rate
39.4
%
 
(29.1
)%
 
(11.2
)%
Schedule of deferred tax assets and liabilities
Significant components of deferred income tax assets and liabilities as of June 30, 2017 and 2016 are presented below:

June 30,
2017
 
June 30,
2016
Deferred income tax assets:
 
 
 
Inventories
$
11.7

 
$
19.3

Accruals and allowances
108.8

 
53.0

Sales returns
14.8

 
13.6

Share-based compensation
14.2

 
14.6

Employee benefits
141.2

 
64.8

Net operating loss carry forwards and tax credits
436.9

 
237.7

Other
40.7

 
23.8

Less: valuation allowances
(60.3
)
 
(179.2
)
Net deferred income tax assets
708.0

 
247.6

Deferred income tax liabilities:
 
 
 
Intangible assets
1,420.9

 
367.3

Property, plant and equipment
44.1

 
19.0

Unrealized gain
44.0

 
49.1

Licensing rights
30.4

 
26.6

Other
20.9

 
3.5

Deferred income tax liabilities
1,560.3

 
465.5

Net deferred income tax liabilities
$
(852.3
)
 
$
(217.9
)
Expirations of tax loss carryforwards
The expirations of tax loss carry forwards, amounting to $1,327.6 as of June 30, 2017, 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
2018
$
—

 
$
—

 
$
48.6

 
$
48.6

2019
—

 
—

 
14.7

 
14.7

2020
—

 
—

 
74.9

 
74.9

2021
—

 
0.8

 
12.0

 
12.8

2022 and thereafter
813.5

 
239.8

 
123.3

 
1,176.6

Total
$
813.5

 
$
240.6

 
$
273.5

 
$
1,327.6
Reconciliation of unrecognized tax benefits
A reconciliation of the beginning and ending amount of UTBs is presented below:
 
Year Ended June 30,
 
2017
 
2016
 
2015
UTBs—July 1
$
228.9

 
$
342.6

 
$
400.5

Additions based on tax positions related to the current year
43.6

 
60.4

 
51.6

Additions for tax positions of prior years
0.4

 
—

 
6.4

Reductions for tax positions of prior years
—

 
(70.5
)
 
(60.3
)
Settlements
(1.5
)
 
(72.7
)
 
(29.7
)
Lapses in statutes of limitations
(13.2
)
 
(37.9
)
 
(14.2
)
Foreign currency translation
(0.3
)
 
7.0

 
(11.7
)
UTBs—June 30
$
257.9

 
$
228.9

 
$
342.6