Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Before Income Taxes

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

(in thousands)	2014			2013			2012
Income before income taxes:
United States	$	59,160		$	87,499		$	95,410
International	169,649			179,110			294,559
Total income before income taxes	$	228,809		$	266,609		$	389,969
Current income taxes:
Federal	$	15,108		$	10,645		$	23,313
State	896			3,441			2,275
International	27,488			45,375			24,946
Total current income taxes	43,492			59,461			50,534
Deferred income taxes:
Federal	$	10,157		$	12,951		$	13,637
State	(62		)	2,433			4,104
International	13,024			(15,152		)	10,861
Total deferred income taxes:	23,119			232			28,602
Provision for income taxes	$	66,611		$	59,693		$	79,136
Effective tax rate	29.1		%	22.4		%	20.3		%

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)	2014			2013			2012
Income taxes at U.S. statutory rate	$	80,083		$	93,313		$	136,489
State income taxes, net of federal tax benefits	1,593			4,051			4,110
U.S. income taxes provided on international income	2,423			3,067			8,164
Combined tax effects of international income	(22,580		)	(30,692		)	(50,574		)
Change in valuation allowance and other uncertain tax positions	(2,603		)	(4,550		)	(16,243		)
Impact of domestic production activities deduction	(942		)	(3,546		)	(3,810		)
Research and development credit	(1,385		)	(4,141		)	(1,515		)
Change in indefinite reinvestment assertion	7,170			—			—
Other	2,852			2,191			2,515
Provision for income taxes	$	66,611		$	59,693		$	79,136

Components of Net Deferred Tax Liabilities and Assets

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

(in thousands)	2014			2013
Deferred tax assets:
Net operating loss carryforwards	$	52,812		$	50,984
Inventory valuation and reserves	20,612			21,935
Pension benefits	2,427			6,402
Other postretirement benefits	8,432			9,163
Accrued employee benefits	29,034			33,666
Other accrued liabilities	12,981			9,368
Hedging activities	14,996			13,994
Tax credits and other carryforwards	2,082			1,708
Other	14,617			20,918
Total	157,993			168,138
Valuation allowance	(17,860		)	(15,569		)
Total deferred tax assets	$	140,133		$	152,569
Deferred tax liabilities:
Tax depreciation in excess of book	$	107,171		$	107,623
Intangible assets	70,957			64,614
Total deferred tax liabilities	$	178,128		$	172,237
Total net deferred tax liabilities	$	(37,995	)	$	(19,668	)

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)	2014			2013
Balance at beginning of year	$	26,798		$	7,298
Increases for tax positions of prior years	1,461			—
Decreases for tax positions of prior years	(6,982		)	—
Increases for tax positions related to the current year	116			23,231
Decreases related to settlement with taxing authority	(2,161		)	(3,813		)
Foreign currency translation	1,134			82
Balance at end of year	$	20,366		$	26,798