Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

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

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



Years ended June 30,	2017		2016		2015
U.S. statutory tax rate	35.0	%	35.0	%	35.0	%
State income taxes, less federal income tax benefits	3.0		3.6		2.9
Settlements - audits / tax litigation	(2.3	)	(0.4	)	(0.1	)
Impairment of goodwill	—		29.3		—
Other	(0.8	)	1.7		0.8
Effective income tax rate	34.9	%	69.2	%	38.6	%

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



June 30,	2017		2016
(In thousands)
Deferred tax assets
Accounts receivable allowances and return reserves	$	11,019	$	12,742
Compensation and benefits	47,222		45,813
Indirect benefit of uncertain state and foreign tax positions	5,068		10,598
All other assets	7,676		16,589
Total deferred tax assets	70,985		85,742
Valuation allowance	—		(905		)
Net deferred tax assets	70,985		84,837
Deferred tax liabilities
Subscription acquisition costs	86,426		88,177
Accumulated depreciation and amortization	329,826		292,871
Deferred gains from dispositions	29,820		29,804
All other liabilities	9,639		10,331
Total deferred tax liabilities	455,711		421,183
Net deferred tax liability	$	384,726	$	336,346

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



Years ended June 30,	2017			2016
(In thousands)
Balance at beginning of year	$	37,966		$	35,919
Increases in tax positions for prior years	774			51
Decreases in tax positions for prior years	(3,052		)	(2,334		)
Increases in tax positions for current year	2,864			6,259
Settlements	(181		)	(97		)
Lapse in statute of limitations	(8,848		)	(1,832		)
Balance at end of year	$	29,523		$	37,966