Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Components of income before income taxes

The components of income before income taxes are as follows:



Year Ended June 30,	2020		2019			2018
U.S.	$	36,161	$	204,462		$	186,874
Foreign	19,075		(9,981		)	17,844
Income before income taxes	$	55,236	$	194,481		$	204,718

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision (benefit) for income taxes consists of:



Year Ended June 30,	2020			2019			2018
Current:
Federal	$	31,149		$	34,437		$	48,131
State and local	7,580			7,965			8,038
Foreign	5,757			5,718			5,309
Total current	44,486			48,120			61,478
Deferred:
Federal	(8,594		)	6,265			5,955
State and local	(3,098		)	1,947			(586		)
Foreign	(1,600		)	(5,844		)	(3,754		)
Total deferred	(13,292		)	2,368			1,615
Total	$	31,194		$	50,488		$	63,093

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 to the Company’s effective income tax rate:



Year Ended June 30,	2020		2019		2018
Statutory income tax rate	21.0	%	21.0	%	28.1	%
Effects of:
State and local taxes	6.4		4.4		3.1
U.S. federal tax reform	—		(0.3	)	3.1
CARES Act NOL carryback	(1.8	)	—		—
Goodwill impairment	31.4		—		—
Stock compensation	(1.3	)	(0.5	)	(0.4	)
GILTI/FDII	3.6		0.7		—
R & D credit	(1.2	)	(0.4	)	(0.3	)
U.S. tax on foreign income, net	(3.1	)	0.5		—
Impact of foreign operations	1.6		(0.6	)	0.7
Non-deductibles	1.2		0.6		0.3
Interest deduction	(4.0	)	(1.2	)	(1.6	)
Deductible dividend	(0.6	)	(0.2	)	(1.3	)
Valuation allowance	2.6		2.9		(0.3	)
Other, net	0.7		(0.9	)	(0.6	)
Effective income tax rate	56.5	%	26.0	%	30.8	%

Components of the Company's net deferred tax assets

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



June 30,	2020			2019
Deferred tax assets:
Compensation liabilities not currently deductible	$	17,252		$	17,401
Other expenses and reserves not currently deductible	15,272			13,050
Goodwill and intangibles	—			2,398
Leases	24,016			—
Net operating loss carryforwards	8,859			8,466
Hedging instrument	6,406			3,498
Other	757			1,173
Total deferred tax assets	72,562			45,986
Less: Valuation allowance	(7,494		)	(5,597		)
Deferred tax assets, net of valuation allowance	65,068			40,389
Deferred tax liabilities:
Inventories	(8,284		)	(8,600		)
Goodwill and intangibles	(58,506		)	(75,504		)
Leases	(23,407		)	—
Depreciation and differences in property bases	(13,018		)	(10,777		)
Total deferred tax liabilities	(103,215		)	(94,881		)
Net deferred tax liabilities	$	(38,147	)	$	(54,492	)
Net deferred tax liabilities are classified as follows:
Other assets	$	4,749		$	3,859
Other liabilities	(42,896		)	(58,351		)
Net deferred tax liabilities	$	(38,147	)	$	(54,492	)

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, 2020 and 2019:



Year Ended June 30,	2020			2019
Unrecognized Income Tax Benefits at beginning of the year	$	4,979		$	3,988
Current year tax positions	105			105
Prior year tax positions	177			1,151
Expirations of statutes of limitations	(306		)	(265		)
Unrecognized Income Tax Benefits at end of year	$	4,955		$	4,979