INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2018

The Company’s provision for income taxes from operations are summarized as follows:


	June 30,
	2018		2017		2016
	(in millions)
Current Income Taxes
Federal	$	(9.3)	$	1.6	$	(1.3)
State		2.0		6.3		8.7
Foreign		8.4		(2.1)		3.9
Total	$	1.1	$	5.8	$	11.3
Deferred Income Taxes
Federal	$	62.9	$	13.3	$	7.3
State		4.1		2.4		(2.3)
Foreign		(42.0)		(3.1)		(7.8)
Total		25.0		12.6		(2.8)
Total provision for income taxes	$	26.1	$	18.4	$	8.5

Schedule of Income/(Loss) before Income Tax

The United States and foreign components of income/(loss) from operations before income taxes are as follows:


	June 30,
	2018		2017		2016
	(in millions)
United States	$	71.0	$	66.6	$	(46.9)
Foreign		57.0		37.5		(20.8)
Total	$	128.0	$	104.1	$	(67.7)

Schedule of Reconciliation of Income Tax Provision

A reconciliation of the actual income tax provision and the tax computed by applying the U.S. federal rate to the earnings before income taxes during the years ended June 30, 2018, 2017 and 2016 are as follows:


	June 30,
	2018		2017		2016
	(in millions)
Expected provision/(benefit) at the statutory rate	$	35.9	$	36.4	$	(23.8)
Increase/(decrease) due to:
Stock-based compensation		3.8		(11.7)		27.9
State income taxes, net of federal benefit		3.2		2.9		(2.1)
Transaction costs not deductible for U.S. federal income tax purposes		0.4		1.9		1.5
Change in statutory tax rate, non-U.S.		7.4		(1.4)		(3.6)
Change in valuation allowance		(49.3)		(10.2)		2.8
State NOL expirations		6.1		—		—
U.S. Tax Reform		24.8		—		—
Foreign tax rate differential		(2.4)		(3.9)		2.7
Other, net		(3.8)		4.4		3.1
Provision for income taxes	$	26.1	$	18.4	$	8.5

Schedule Provisional amounts recognized for income taxes

In accordance with SAB 118, the Company has recorded provisional tax expense each quarter as follows:


	December 31, 2017		March 31, 2018		June 30, 2018		Total Tax Expense		Deferred Tax Liability		Tax Receivable
Change in statutory rate, U.S. only	$	1.4	$	0.2	$	(15.2)	$	(13.6)	$	(3.4)	$	10.2
Changes to indefinite reinvestment assertion		7.9		(0.4)		(6.7)		0.8		0.8		—
Repatriation tax		34.8		4.8		(2.0)		37.6		37.6		—
Net impacts of U.S. Tax Reform	$	44.1	$	4.6	$	(23.9)	$	24.8	$	35.0	$	10.2

Schedule of statutory tax rate for determining provision for tax


	Fiscal Year
U.S. Tax Rates		2017	2018	2019
Federal rate		35%	28%	21%
Blended federal and state rates		39%	33%	26%

Schedule of Unrecognized Tax Benefits


	Year Ended June 30, 2018
Balance at beginning of year	$	0.2
Additions for current year tax positions		1.2
Additions for prior year tax positions		1.7
Reductions as a result of settlement with tax authority		(0.1)
Balance at end of year	$	3.0

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows:


	June 30,
	2018		2017
	(in millions)
Deferred income tax assets
Net operating loss carry forwards	$	545.2	$	715.2
Tax credit carry forwards		17.9		22.6
Deferred revenue		305.0		405.9
Accrued expenses		41.4		40.0
Other liabilities		2.3		17.4
Reserves against accounts receivable		15.8		18.2
Deferred compensation		11.2		20.3
Total deferred income tax assets		938.8		1,239.6
Valuation allowance		(72.9)		(111.1)
Net deferred tax assets		865.9		1,128.5
Deferred income tax liabilities
Property and equipment		680.9		712.2
Intangible assets		293.3		412.4
Debt issuance costs		2.4		5.8
Total deferred income tax liabilities		976.6		1,130.4
Less SRT deferred tax liabilities held for sale		(5.1)		—
Net deferred income tax liabilities	$	(105.6)	$	(1.9)