Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Income (Loss) from Continuing Operations Before Income Taxes

The components of income (loss) from continuing operations before income taxes were as follows:

Year Ended June 30,	2014			2013		2012
($000)
U.S. income (loss)	$	(2,863	)	$	19,253	$	16,025
Non-U.S. income		48,504			58,233		72,453
Total Earnings Before Tax	$	45,641		$	77,486	$	88,478

Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) from continuing operations were as follows:

Year Ended June 30,	2014			2013		2012
($000)
Current:
Federal		(1,067	)	$	2,759	$	283
State	152				68		227
Foreign		12,675			13,977		16,673
Total Current	$	11,760		$	16,804	$	17,183
Deferred:
Federal		(16	)	$	1,721	$	3,409
State	148				113		(356	)
Foreign		(4,567	)		128		(2,476	)
Total Deferred	$	(4,435	)	$	1,962	$	577
Total Income Tax Expense	$	7,325		$	18,766	$	17,760

Schedule of Principal Items Comprising Deferred Income Taxes

Principal items comprising deferred income taxes were as follows:

June 30,	2014			2013
($000)
Deferred income tax assets
Inventory capitalization	$	5,402		$	6,333
Non-deductible accruals		1,926			1,930
Accrued employee benefits		9,226			6,790
Net-operating loss and credit carryforwards		21,976			22,849
Share-based compensation expense		16,005			15,021
Other		577			205
Valuation allowances		(2,212	)		(2,885	)
Total deferred income tax assets	$	52,900		$	50,243
Deferred income tax liabilities
Tax over book accumulated depreciation		(17,625	)	$	(16,988	)
Intangible assets		(25,505	)		(21,561	)
Other		(2,786	)		(2,409	)
Total deferred income tax liabilities	$	(45,916	)	$	(40,958	)
Net deferred income taxes	$	6,984		$	9,285

Schedule of Reconciliation of Income Tax Expense at Statutory Federal Rate to Reported Income Tax Expense

The reconciliation of income tax expense at the statutory federal rate to the reported income tax expense is as follows:

Year Ended June 30,	2014			%			2013			%			2012			%
($000)
Taxes at statutory rate	$	15,974			35		$	27,120			35		$	30,967			35
Increase (decrease) in taxes resulting from:
State income taxes-net of federal benefit		254			1			168			-			(187	)		-
Taxes on non U.S. earnings		(6,672	)		(15	)		(6,991	)		(9	)		(9,841	)		(11	)
Settlement of unrecognized tax benefits		-			-			-			-			(842	)		(1	)
Research and manufacturing incentive deductions		(2,190	)		(5	)		(1,458	)		(2	)		(2,079	)		(3	)
Other		(41	)		-			(73	)		-			(258	)		-
	$	7,325			16		$	18,766			24		$	17,760			20

Schedule of Sources of Differences Resulting in Deferred Income Tax Expense (Benefit)

The sources of differences resulting in deferred income tax expense (benefit) from continuing operations and the related tax effect of each were as follows:

Year Ended June 30,	2014			2013			2012
($000)
Depreciation and amortization	$	(3,581	)	$	(2,825	)	$	38
Inventory capitalization		646			84			(1,947	)
Net operating loss and credit carryforwards net of valuation allowances	533				4,786			1,859
Share-based compensation expense		(984	)		(3,487	)		(2,442	)
Other		(1,049	)		3,404			3,069
	$	(4,435	)	$	1,962		$	577

Schedule of Gross Operating Loss Carryforwards and Tax Credit Carryforwards

The Company has the following gross operating loss carryforwards and tax credit carryforwards as of June 30, 2014:

Type	Amount		Expiration Date
($000)
Tax credit carryforwards:
Federal research and development credits	$	4,117	June 2019-June 2034
State tax credits		2,827	June 2014-June 2029
Operating loss carryforwards:
Loss carryforwards - federal	$	36,124	June 2022-June 2029
Loss carryforwards - state		25,116	June 2014-June 2034
Loss carryforwards - foreign		9,427	June 2016-June 2022

Schedule of Changes in Liability for Unrecognized Tax Benefits

Changes in the liability for unrecognized tax benefits for the fiscal years ended June 30, 2014, 2013 and 2012 were as follows:

	2014			2013			2012
($000)
Balance at Beginning of Year	$	3,181		$	2,850		$	4,744
Increases in current year tax positions		298			338			738
Increases in prior year tax positions	2				-			-
Decreases in prior year tax positions		-			(7	)		(41	)
Settlements		-			-			(1,788	)
Expiration of statute of limitations		(706	)		-			(803	)
Balance at End of Year	$	2,775		$	3,181		$	2,850