INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2019

The Company’s provision/(benefit) for income taxes from operations are summarized as follows:


	June 30,
	2019		2018		2017
	(in millions)
Current income taxes
Federal	$	—	$	(9.3)	$	1.6
State		10.9		2.0		6.3
Foreign		13.2		8.4		(2.1)
Total	$	24.1	$	1.1	$	5.8
Deferred income taxes
Federal	$	12.3	$	60.2	$	14.1
State		4.2		4.1		2.4
Foreign		(15.3)		(42.0)		(3.1)
Total		1.2		22.3		13.4
Total provision for income taxes	$	25.3	$	23.4	$	19.2

Schedule of Income/(Loss) before Income Tax

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


	June 30,
	2019		2018		2017
	(in millions)
United States	$	91.9	$	69.3	$	68.8
Foreign		83.4		57.0		37.5
Total	$	175.3	$	126.3	$	106.3

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, 2019, 2018 and 2017 are as follows, prior period amounts were reclassified for comparability with the 2019 presentation:


	June 30,
	2019		2018		2017
	(in millions)
Applicable statutory rate		21%		28%		35%
Expected provision at the statutory rate	$	36.8	$	35.4	$	37.2
Increase/(decrease) due to:
Stock-based compensation		6.6		3.8		(11.7)
State income taxes, net of federal benefit		4.7		3.2		2.9
Change in statutory tax rate, outside U.S.		(1.4)		7.4		(1.4)
Change in uncertain tax benefits		11.8		3.1		—
Foreign tax rate differential		4.4		(2.4)		(3.9)
U.S. Tax Reform		7.2		24.8		—
Change in valuation allowance		(38.7)		(49.3)		(10.2)
Other, net		(6.1)		(2.6)		6.3
Provision for income taxes	$	25.3	$	23.4	$	19.2

Effect of U.S. Tax Reform on Tax Expense

Amounts recognized due to the U.S. Tax Reform for the year ended June 30, 2019:


	Through June 30, 2018		Tax Expense recognized for the Year Ended June 30, 2019		Through June 30, 2019
	(in millions)
Change in statutory tax rate, U.S. only	$	(13.6)	$	6.2	$	(7.4)
Changes to indefinite reinvestment assertion		0.8		(0.2)		0.6
Repatriation Tax		37.6		1.2		38.8
Net impacts of U.S. Tax Reform	$	24.8	$	7.2	$	32.0

Schedule of Unrecognized Tax Benefits


	June 30,
	2019		2018
	(in millions)
Balance at beginning of year	$	3.0	$	0.2
Additions for current year tax positions		1.5		1.2
Additions for prior year tax positions		11.5		1.7
Reductions as a result of settlement with tax authority		(0.3)		(0.1)
Balance at end of year	$	15.7	$	3.0

Interest and penalties included in balance	$	2.2	$	0.1
Amount, if recognized, would impact the effective income tax rate		10.0		1.8
Amount that could be settled within the next year		10.0		1.9

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,
	2019		2018
	(in millions)
Deferred income tax assets
Net operating loss carry forwards	$	367.5	$	545.2
Tax credit carry forwards		12.9		17.9
Deferred revenue		333.2		299.3
Accrued expenses		39.7		38.1
Other liabilities		4.5		2.3
Reserves against accounts receivable		20.6		15.8
Deferred compensation		8.7		11.2
Total deferred income tax assets		787.1		929.8
Valuation allowance		(32.4)		(72.9)
Net deferred tax assets		754.7		856.9
Deferred income tax liabilities
Property and equipment		589.9		675.8
Intangible assets		272.5		293.3
Debt issuance costs		2.4		2.4
Total deferred income tax liabilities		864.8		971.5
Less SRT deferred tax liabilities held for sale		—		(5.1)
Net deferred income tax liabilities	$	(110.1)	$	(109.5)