Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Components of Provisions for Income Taxes

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

	Year Ended June 30,
	2014			2013			2012
Earnings before income taxes consist of:
Domestic	$	127,681		$	127,491		$	130,009
Foreign		33,711			33,171			32,186
	$	161,392		$	160,662		$	162,195
Taxes on income consist of:
Currently payable:
Federal	$	40,967		$	37,666		$	42,288
State		1,709			2,012			3,065
Foreign		10,668			10,758			8,891
Net deferred:
Federal		(1,137	)		(595	)		(4,318	)
State		(41	)		(7	)		(149	)
Foreign		(1,722	)		(1,733	)		87
	$	50,444		$	48,101		$	49,864

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,
	2014			2013			2012
Computed expected federal income tax expense	$	56,487		$	56,232		$	56,768
State income taxes, net of federal benefit		1,048			1,300			2,038
Qualified production activity deduction		(3,823	)		(3,774	)		(3,917	)
Research and development tax credit		(476	)		(1,392	)		(465	)
Tax-exempt interest		(654	)		(568	)		(565	)
Foreign tax rate differences		(2,857	)		(2,587	)		(2,276	)
Change in deferred tax valuation allowance		0			0			(3,016	)
Other		719			(1,110	)		1,297
	$	50,444		$	48,101		$	49,864

Temporary Differences Comprising Deferred Taxes on Consolidated Balance Sheets

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

	June 30
	2014			2013
Inventory	$	9,932		$	9,049
Unrealized profit on intercompany sales		1,959			1,973
Excess tax basis in equity investments		4,344			4,760
Deferred compensation		3,295			3,161
Other		1,129			885
Valuation allowance		(1,806	)		0
Net deferred tax assets		18,853			19,828
Net unrealized gain on available-for-sale investments		(2,745	)		(21,662	)
Goodwill and intangible asset amortization		(37,641	)		(15,195	)
Depreciation		(2,166	)		(701	)
Other		(516	)		(687	)
Deferred tax liabilities		(43,068	)		(38,245	)
Net deferred tax liabilities	$	(24,215	)	$	(18,417	)