XML 47 R32.htm IDEA: XBRL DOCUMENT v3.5.0.2
Income Taxes (Tables)
12 Months Ended
Jun. 30, 2016
Income Tax Disclosure [Abstract]  
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,
2016

 
2015

 
2014

(In thousands)
 
 
 
 
 
Currently payable
 
 
 
 
 
Federal
$
59,173

 
$
39,429

 
$
37,615

State
7,263

 
4,583

 
2,764

Foreign
30

 
35

 
37

 
66,466

 
44,047

 
40,416

Deferred
 
 
 
 
 
Federal
8,297

 
36,314

 
18,138

State
1,507

 
5,608

 
2,386

Foreign

 

 
(142
)
 
9,804

 
41,922

 
20,382

Income taxes
$
76,270

 
$
85,969

 
$
60,798


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,
2016

 
2015

 
2014

U.S. statutory tax rate
35.0
 %
 
35.0
 %
 
35.0
 %
State income taxes, less federal income tax benefits
3.6

 
2.9

 
2.2

Settlements - audits / tax litigation
(0.4
)
 
(0.1
)
 
(0.3
)
Impairment of goodwill
29.3

 

 

Restructuring of international operations

 

 
(2.5
)
Other
1.7

 
0.8

 
0.5

Effective income tax rate
69.2
 %
 
38.6
 %
 
34.9
 %
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,
2016

 
2015

(In thousands)
 
 
 
Deferred tax assets
 
 
 
Accounts receivable allowances and return reserves
$
12,742

 
$
15,670

Compensation and benefits
45,813

 
35,850

Indirect benefit of uncertain state and foreign tax positions
10,598

 
9,925

All other assets
10,571

 
7,068

Total deferred tax assets
79,724

 
68,513

Valuation allowance
(905
)
 
(1,808
)
Net deferred tax assets
78,819

 
66,705

Deferred tax liabilities
 
 
 
Subscription acquisition costs
88,177

 
87,036

Accumulated depreciation and amortization
292,871

 
288,952

Deferred gains from dispositions
23,786

 
23,908

All other liabilities
10,331

 
6,842

Total deferred tax liabilities
415,165

 
406,738

Net deferred tax liability
$
336,346

 
$
340,033



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,
2016

 
2015

(In thousands)
 
 
 
Balance at beginning of year
$
35,919

 
$
37,995

Increases in tax positions for prior years
51

 

Decreases in tax positions for prior years
(2,334
)
 
(2,028
)
Increases in tax positions for current year
6,259

 
5,686

Settlements
(97
)
 
(1,853
)
Lapse in statute of limitations
(1,832
)
 
(3,881
)
Balance at end of year
$
37,966

 
$
35,919