Income Taxes (Text Block)

12 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The provision for income taxes from continuing operations consists of the following:

	Year ended June 30,
	2013		2012		2011
Current:
Federal	$	54,574	$	48,053	$	43,334
State	4,540		6,022		6,180
Deferred:
Federal	19,553		20,649		18,276
State	4,538		1,960		2,251
	$	83,205	$	76,684	$	70,041

The tax effects of temporary differences related to deferred taxes shown on the balance sheets were:

	June 30,
	2013			2012
Deferred tax assets:
Deferred revenue	$	5,846		$	8,575
Expense reserves (bad debts, insurance, franchise tax and vacation)	12,515			9,349
Net operating loss carryforwards	6,363			9,454
Other, net	1,383			1,410
	26,107			28,788
Deferred tax liabilities:
Accelerated tax depreciation	(35,046		)	(34,636		)
Accelerated tax amortization	(106,147		)	(91,379		)
Prepaid expenses	(25,779		)	(23,331		)
Other, net	(9,714		)	(6,280		)
	(176,686		)	(155,626		)
Net deferred tax liability before valuation allowance	(150,579		)	(126,838		)
Valuation allowance	(700		)	(350		)
Net deferred tax liability	$	(151,279	)	$	(127,188	)

The deferred taxes are classified on the balance sheets as follows:

	2013			2012
Deferred income taxes (current)	$	(30,845	)	$	(26,256	)
Deferred income taxes (long-term)	(120,434		)	(100,932		)
	$	(151,279	)	$	(127,188	)

The following analysis reconciles the statutory federal income tax rate to the effective income tax rates reflected above:

	Year Ended June 30,
	2013		2012		2011
Computed "expected" tax expense	35.0	%	35.0	%	35.0	%
Increase (reduction) in taxes resulting from:
State income taxes, net of federal income tax benefits	2.3	%	2.2	%	2.6	%
Research and development credit	(3.3	)%	(1.8	)%	(2.0	)%
Domestic production activities deduction	(2.2	)%	(2.1	)%	(2.5	)%
Other (net)	0.2	%	(0.2	)%	0.7	%
	32.0	%	33.1	%	33.8	%

As of June 30, 2013, we have $13,631 of net operating loss (“NOL”) carryforwards pertaining to the acquisition of GFSI, which are expected to be utilized after the application of IRC Section 382. Separately, as of June 30, 2013, we had state NOL carryforwards of $2,427. The federal and state losses have varying expiration dates, ranging from 2013 to 2032. Based on state tax rules which restrict our utilization of these losses, we believe it is more likely than not that $700 of these losses will expire unutilized. Accordingly, a valuation allowance of $700 and $350 has been recorded against these assets as of June 30, 2013 and 2012, respectively.

The Company paid income taxes of $54,815, $44,962, and $60,515 in 2013, 2012, and 2011 respectively.

At June 30, 2012, the Company had $6,202 of unrecognized tax benefits. At June 30, 2013, the Company had $4,890 of gross unrecognized tax benefits, $3,312 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $597 and $711 related to uncertain tax positions at June 30, 2013 and 2012, respectively.

A reconciliation of the unrecognized tax benefits for the years ended June 30, 2013 and 2012 follows:

	Unrecognized Tax Benefits
Balance at July 1, 2011	$	8,897
Additions for current year tax positions	1,673
Reductions for current year tax positions	—
Additions for prior year tax positions	8
Reductions for prior year tax positions	(2,904		)
Settlements	(1,454		)
Reductions related to expirations of statute of limitations	(18		)
Balance at June 30, 2012	6,202
Additions for current year tax positions	1,087
Reductions for current year tax positions	—
Additions for prior year tax positions	510
Reductions for prior year tax positions	(2,720		)
Settlements	—
Reductions related to expirations of statute of limitations	(189		)
Balance at June 30, 2013	$	4,890

During the fiscal year ended June 30, 2012, the Internal Revenue Service initiated an examination of the Company’s U.S. federal income tax returns for the fiscal years ended June 30, 2010 and 2011. The exam was completed in fiscal 2013 and did not result in a material change to the financial condition of the Company. The U.S. federal and state income tax returns for June 30, 2010 and all subsequent years remain subject to examination as of June 30, 2013 under statute of limitations rules. We anticipate potential changes could reduce the unrecognized tax benefits balance by $100 - $700 within twelve months of June 30, 2013