Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Jun. 30, 2021

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


(in thousands)	2022			2021			2020
Income (loss) before income taxes:
United States	$	10,109		$	(60,775)		$	(76,107)
International	196,624			125,435			78,067
Total income before income taxes	$	206,733		$	64,660		$	1,960
Current income taxes:
Federal	$	1,115		$	39		$	(3,558)
State	106			133			905
International	44,019			30,726			33,559
Total current income taxes	45,240			30,898			30,906
Deferred income taxes:
Federal	$	10,841		$	(23,170)		$	(9,113)
State	(676)			(2,948)			724
International	1,127			1,463			(15,510)
Total deferred income taxes:	11,292			(24,655)			(23,899)
Provision for income taxes	$	56,532		$	6,243		$	7,007
Effective tax rate	27.3		%	9.7		%	357.5		%

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)	2022		2021		2020
Income taxes at U.S. statutory rate	$	43,414	$	13,579	$	412
State income taxes, net of federal tax benefit	(450)		(1,725)		1,283
U.S. income taxes provided on international income	12,815		(6,479)		12,422
Combined tax effects of international income	2,747		5,860		10,583
Impact of goodwill impairment charges	—		—		5,651

Change in valuation allowance and other uncertain tax positions	(614)		1,127		755

U.S. research and development credit	(2,814)		(3,055)		(4,093)
Change in permanent reinvestment assertion	775		—		—

Combined effects of Swiss tax reform	—		—		(14,500)
Combined effects of the U.S. CARES Act	—		—		(6,913)
Recognition of stranded deferred tax balance	—		(3,465)		—

Other	659		401		1,407
Provision for income taxes	$	56,532	$	6,243	$	7,007

Components of Net Deferred Tax Liabilities and Assets

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


(in thousands)	2022		2021
Deferred tax assets:
Net operating loss (NOL) carryforwards	$	25,868	$	44,258
Inventory valuation and reserves	11,747		11,068
Pension benefits	—		7,136
Other postretirement benefits	3,050		3,486
Accrued employee benefits	11,775		11,168
Operating lease liabilities	11,995		12,652
Other accrued liabilities	12,992		15,596
Tax credits and other carryforwards	34,930		32,490
Intangible assets	4,246		7,784

Total	116,603		145,638
Valuation allowance	14,385		21,263
Total deferred tax assets	$	102,218	$	124,375
Deferred tax liabilities:
Tax depreciation in excess of book	$	57,109	$	63,020
Operating lease right-of-use assets	11,852		12,502

Unremitted earnings not permanently reinvested	7,242		6,429
Pension benefits	1,061		—
Other	2,537		7,392
Total deferred tax liabilities	$	79,801	$	89,343
Total net deferred tax assets (liabilities)	$	22,417	$	35,032

Reconciliation of Unrecognized Tax Benefits Excluding Interest

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


(in thousands)	2022		2021		2020
Balance at beginning of year	$	8,656	$	8,680	$	8,952
Increases for tax positions of prior years	105		—		—



Decreases related to lapse of statute of limitations	(779)		(229)		(214)
Foreign currency translation	(384)		205		(58)
Balance at end of year	$	7,598	$	8,656	$	8,680