Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Schedule of Components of Income Tax Expense (Benefit)

The following table shows income tax expense (benefit) attributable to earnings before income taxes:



Years ended June 30,	2014			2013			2012
(In thousands)
Currently payable
Federal	$	37,615		$	30,604		$	9,911
State	2,764			1,419			1,222
Foreign	37			42			103
	40,416			32,065			11,236
Deferred
Federal	18,138			35,383			49,046
State	2,386			6,453			8,153
Foreign	(142		)	(147		)	68
	20,382			41,689			57,267
Income taxes	$	60,798		$	73,754		$	68,503

Schedule of Effective Income Tax Rate Reconciliation

The differences between the statutory U.S. federal income tax rate and the effective tax rate were as follows:



Years ended June 30,	2014		2013		2012
U.S. statutory tax rate	35.0	%	35.0	%	35.0	%
State income taxes, less federal income tax benefits	2.2		3.0		3.5
Settlements - audits / tax litigation	(0.3	)	(1.6	)	(0.5	)
Restructuring of international operations	(2.5	)	—		—
Other	0.5		1.0		1.6
Effective income tax rate	34.9	%	37.4	%	39.6	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that gave rise to deferred tax assets and deferred tax liabilities were as follows:



June 30,	2014			2013
(In thousands)
Deferred tax assets
Accounts receivable allowances and return reserves	$	15,964		$	12,123
Compensation and benefits	34,320			42,602
Indirect benefit of uncertain state and foreign tax positions	10,875			10,421
All other assets	5,174			13,222
Total deferred tax assets	66,333			78,368
Valuation allowance	(1,742		)	(1,655		)
Net deferred tax assets	64,591			76,713
Deferred tax liabilities
Subscription acquisition costs	76,359			75,914
Accumulated depreciation and amortization	255,936			238,557
Gains from dispositions	24,048			24,027
All other liabilities	4,907			4,969
Total deferred tax liabilities	361,250			343,467
Net deferred tax liability	$	296,659		$	266,754

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:



Years ended June 30,	2014			2013
(In thousands)
Balance at beginning of year	$	42,402		$	39,164
Increases in tax positions for prior years	327			664
Decreases in tax positions for prior years	(699		)	(181		)
Increases in tax positions for current year	5,756			9,987
Settlements	(652		)	(65		)
Lapse in statute of limitations	(9,139		)	(7,167		)
Balance at end of year	$	37,995		$	42,402

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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