Income taxes (Tables)

12 Months Ended

Jun. 30, 2011

Components of Provisions for Income Taxes

The provisions for income taxes consist of the following (in thousands):

	Year Ended June 30,
	2011		2010			2009
Earnings before income taxes consist of:
Domestic	$	131,080	$	124,860		$	121,585
Foreign		33,901		31,586			33,778
	$	164,981	$	156,446		$	155,363
Taxes on income consist of:
Currently payable:
Federal	$	36,600	$	37,098		$	38,621
State		2,302		1,856			2,308
Foreign		9,854		9,266			9,920
Net deferred:
Federal		3,893		(1,494	)		(721	)
State		19		39			9
Foreign		11		(95	)		(16	)
	$	52,679	$	46,670		$	50,121

Reconciliation of Federal Tax Calculated at Statutory Rate

The following is a reconciliation of the federal tax calculated at the statutory rate of 35% to the actual income taxes provided (in thousands):

	Year Ended June 30,
	2011			2010			2009
Computed expected federal income tax expense	$	57,743		$	54,756		$	54,377
State income taxes, net of federal benefit		1,463			1,247			1,805
Qualified production activity deduction		(3,889	)		(2,459	)		(2,397	)
Research and development tax credit		(1,329	)		(444	)		(1,192	)
Tax-exempt interest		(858	)		(1,114	)		(1,424	)
Increase (decrease) in deferred tax valuation allowance		60			44			(235	)
Foreign exchange loss on repatriation		0			(4,424	)		0
Other		(511	)		(936	)		(813	)
	$	52,679		$	46,670		$	50,121

Temporary Differences Comprising Deferred Taxes on the Consolidated Balance Sheets

Temporary differences comprising deferred taxes on the Consolidated Balance Sheets are as follows (in thousands):

	June 30
	2011			2010
Inventory	$	4,269		$	8,902
Unrealized profit on intercompany sales		1,075			935
Excess tax basis in equity investments		3,643			3,651
Foreign tax credit carryforward		0			3,304
Deferred compensation		2,198			1,910
Other		596			950
Valuation allowance		(3,016	)		(2,956	)
Net deferred tax assets		8,765			16,696
Goodwill and intangible asset amortization		(15,077	)		(1,241	)
Depreciation		(485	)		0
Other		(766	)		(1,065	)
Deferred tax liabilities		(16,328	)		(2,306	)
Net deferred tax (liabilities) assets	$	(7,563	)	$	14,390

Changes in Unrecognized Tax Benefits

A summary of changes in unrecognized tax benefits is as follows (in thousands):

	June 30
	2011			2010
Beginning balance	$	96		$	91
Change due to tax positions related to the current year		(53	)		15
Decrease due to lapse of statute of limitations		(9	)		(10	)
Ending balance	$	34		$	96