Income Taxes (Tables)

12 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income before income taxes

Income before income taxes was derived from the following sources:

	2021		2020		2019
United States	$	1,273,037	$	828,160	$	1,140,983
Foreign	973,920		678,694		808,492
	$	2,246,957	$	1,506,854	$	1,949,475

Income taxes

Income taxes include the following:

	2021		2020		2019
Federal
Current	$	247,094	$	105,796	$	160,858
Deferred	(52,960)		24,905		18,133
Foreign
Current	269,607		167,680		206,167
Deferred	8,851		(14,247)		3,202
State and local
Current	34,895		18,756		20,932
Deferred	(7,391)		1,632		15,100
	$	500,096	$	304,522	$	424,392

Effective income tax rate reconciliation to statutory federal rate

A reconciliation of the effective income tax rate to the statutory federal rate follows:

	2021		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State and local income taxes	1.0		1.4		1.7
Tax related to international activities	3.6		1.8		2.9
Transition tax related to the TCJ Act	—		(0.7)		0.8
Remeasurement of deferred tax assets and liabilities related to the TCJ Act	—		—		(0.9)
Cash surrender value of life insurance	(0.6)		(0.3)		(0.1)
Federal manufacturing deduction	—		—		0.1
Foreign derived intangible income deduction	(1.0)		(1.5)		(1.0)
Research tax credit	(0.4)		(0.6)		(0.5)
Share-based compensation	(1.6)		(1.5)		(1.7)
Other	0.3		0.6		(0.5)
Effective income tax rate	22.3	%	20.2	%	21.8	%

Differences comprising the net deferred taxes shown on consolidated balance sheet

The differences comprising the net deferred taxes shown on the Consolidated Balance Sheet at June 30 were as follows:

	2021		2020
Retirement benefits	$	322,931	$	504,747
Other liabilities and reserves	136,710		139,872
Long-term contracts	5,562		7,392
Stock-based compensation	30,165		35,483
Loss carryforwards	861,013		754,655
Unrealized currency exchange gains and losses	18,841		39,256
Inventory	(11,753)		(31,081)
Tax credit carryforwards	19,709		33,176
Undistributed foreign earnings	(21,722)		(15,196)
Depreciation and amortization	(945,422)		(988,886)
Valuation allowance	(865,764)		(771,430)
Net deferred tax (liability)	$	(449,730)	$	(292,012)
Change in net deferred tax (liability):
Provision for deferred tax	$	51,500	$	(12,290)
Items of other comprehensive (loss) income	(209,509)		102,297
Acquisitions and other	291		(301,690)
Total change in net deferred tax	$	(157,718)	$	(211,683)

Reconciliation of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2021		2020		2019
Balance July 1	$	86,277	$	140,662	$	153,091
Additions for tax positions related to current year	10,145		4,955		2,272
Additions for tax positions of prior years	10,320		798		45
Additions for acquisitions	2,376		43,532		—
Reductions for tax positions of prior years	(1,996)		(41,726)		(927)
Reductions for settlements	(7,165)		(53,520)		(832)
Reductions for expiration of statute of limitations	(2,252)		(3,820)		(9,388)
Effect of foreign currency translation	3,054		(4,604)		(3,599)
Balance June 30	$	100,759	$	86,277	$	140,662