Income Taxes Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

Income from Continuing Operations Before Income Taxes

Income before income taxes consisted of the following for the years ended June 30:



(in thousands)	2013			2012			2011
Income before income taxes:
United States	$	87,499		$	95,410		$	69,042
International	179,110			294,559			227,091
Total income before income taxes	$	266,609		$	389,969		$	296,133
Current income taxes:
Federal	$	10,645		$	23,313		$	26,234
State	3,441			2,275			1,063
International	45,375			24,946			44,440
Total current income taxes	59,461			50,534			71,737
Deferred income taxes	232			28,602			(7,881		)
Provision for income taxes	$	59,693		$	79,136		$	63,856
Effective tax rate	22.4		%	20.3		%	21.6		%

Reconciliation of Income Taxes and the Provision for Income Taxes

The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes was as follows for the years ended June 30:



(in thousands)	2013			2012			2011
Income taxes at U.S. statutory rate	$	93,313		$	136,489		$	103,647
State income taxes, net of federal tax benefits	4,051			4,110			1,956
U.S. income taxes provided on international income	3,067			8,164			21,556
Combined tax effects of international income	(30,692		)	(50,574		)	(35,423		)
Change in valuation allowance and other uncertain tax positions	(4,550		)	(16,243		)	(20,215		)
Impact of domestic production activities deduction	(3,546		)	(3,810		)	(6,413		)
Research and development credit	(4,141		)	(1,515		)	(2,685		)
Other	2,191			2,515			1,433
Provision for income taxes	$	59,693		$	79,136		$	63,856

Components of Net Deferred Tax Assets and Liabilities

The components of net deferred tax liabilities and assets were as follows at June 30:



(in thousands)	2013			2012
Deferred tax assets:
Net operating loss carryforwards	$	50,984		$	68,782
Inventory valuation and reserves	21,935			26,363
Pension benefits	6,402			38,552
Other postretirement benefits	9,163			9,958
Accrued employee benefits	33,666			30,179
Other accrued liabilities	9,368			8,857
Hedging activities	13,994			13,338
Tax credits and other carryforwards	1,708			6,354
Other	20,918			—
Total	168,138			202,383
Valuation allowance	(15,569		)	(19,502		)
Total deferred tax assets	$	152,569		$	182,881
Deferred tax liabilities:
Tax depreciation in excess of book	$	107,623		$	109,948
Intangible assets	64,614			68,806
Other	—			448
Total deferred tax liabilities	$	172,237		$	179,202
Total net deferred tax (liabilities) assets	$	(19,668	)	$	3,679

Reconciliation of Unrecognized Tax Benefits Excluding Interest

A reconciliation of the beginning and ending amount of unrecognized tax benefits (excluding interest) is as follows as of June 30:



(in thousands)	2013			2012
Balance at beginning of year	$	7,298		$	18,289
Increases for tax positions of prior years	—			946
Increases for tax positions related to the current year	23,231			116
Decreases for tax positions related to the current year	—			(1,635		)
Decreases related to settlement with taxing authority	(3,813		)	(7,280		)
Decreases related to lapse of statute of limitations	—			(805		)
Foreign currency translation	82			(2,333		)
Balance at end of year	$	26,798		$	7,298