Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

Components of income before income taxes

The components of income before income taxes are as follows:



Year Ended June 30,	2013		2012		2011
U.S.	$	153,546	$	137,667	$	127,567
Foreign	24,119		29,159		25,321
Total income before income taxes	$	177,665	$	166,826	$	152,888

Provision (benefit) for income taxes

The provision (benefit) for income taxes consists of:



Year Ended June 30,	2013			2012			2011
Current:
Federal	$	38,859		$	36,178		$	36,799
State and local	5,736			5,522			6,208
Foreign	4,742			7,706			8,338
Total current	49,337			49,406			51,345
Deferred:
Federal	10,277			8,577			5,648
State and local	346			503			169
Foreign	(444		)	(439		)	(1,033		)
Total deferred	10,179			8,641			4,784
Total	$	59,516		$	58,047		$	56,129

Reconciliations of federal statutory income tax rate and Company's effective income tax rate

The following reconciles the U.S. federal statutory income tax rate and the Company’s effective income tax rate:



Year Ended June 30,	2013		2012		2011
Statutory income tax rate	35.0	%	35.0	%	35.0	%
Effects of:
State and local taxes	2.3	%	2.5	%	2.8	%
U.S. tax on foreign income, net	—	%	—	%	1.8	%
Valuation allowance	—	%	—	%	(0.6	)%
Foreign income taxes	(2.3	)%	(1.8	)%	(1.0	)%
Deductible dividend	(0.5	)%	(0.5	)%	(0.5	)%
Other, net	(1.0	)%	(0.4	)%	(0.8	)%
Effective income tax rate	33.5	%	34.8	%	36.7	%

Components of the Company's net deferred tax assets

Significant components of the Company’s net deferred tax assets are as follows:



June 30,	2013			2012
Deferred tax assets:
Compensation liabilities not currently deductible	$	33,506		$	37,341
Expenses and reserves not currently deductible	6,131			6,151
Goodwill and intangibles	3,781			6,518
Net operating loss carryforwards (expiring in years 2027-2033)	432			444
Foreign tax credits (expiring in years 2018, 2020, 2021)	38			4,092
Other	569			480
Total deferred tax assets	44,457			55,026
Less: Valuation allowance	(11		)	(157		)
Deferred tax assets, net of valuation allowance	44,446			54,869
Deferred tax liabilities:
Inventories	(9,057		)	(6,021		)
Unremitted foreign earnings	(2,804		)	(2,804		)
Depreciation and differences in property bases	(11,460		)	(11,602		)
Total deferred tax liabilities	(23,321		)	(20,427		)
Net deferred tax assets	$	21,125		$	34,442
The net deferred tax asset is classified as follows:
Other current assets	$	6,315		$	12,189
Deferred tax assets (long-term)	21,026			26,424
Other liabilities	(6,216		)	(4,171		)
Net deferred tax assets	$	21,125		$	34,442

Reconciliation of the Company's total gross unrecognized income tax benefits

The Company and its subsidiaries file income tax returns in U.S. federal, various state, local and foreign jurisdictions. The following table sets forth the changes in the amount of unrecognized tax benefits for the years ended June 30, 2013, 2012 and 2011:



Year Ended June 30,	2013			2012			2011
Unrecognized Income Tax Benefits at beginning of the year	$	1,539		$	1,181		$	1,842
Current year tax positions	957			331			153
Prior year tax positions	790			398			50
Expirations of statutes of limitations	(565		)	(371		)	(273		)
Settlements	(66		)	—			(591		)
Unrecognized Income Tax Benefits at end of year	$	2,655		$	1,539		$	1,181

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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