11. Income Taxes

12 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

11. Income Taxes

The reconciliation of the provision for income taxes at the federal statutory rate of 15% and 35%, respectively, to the actual tax expense for the applicable fiscal year was as follows:

	2012					2011
		Amount		% of Pre-tax Income			Amount		% of Pre-tax Income
Computed “expected” income tax	$	9,300		15.0	%	$	107,500		35.0	%
Research and development credits		(11,300	)	(18.3	)		(15,000	)	(4.9	)
Other, net		(2,200		(3.5	)		(12,900	)	(4.2	)
Income tax expense (benefit)	$	(4,200	)	(6.8	%)	$	79,600		25.9	%

Deferred tax assets and liabilities consist of the following:

		2012			2011
Deferred tax assets:
Amortization of intangibles	$	149,700		$	130,500
Various accruals		44,800			48,200
Other		55,100			55,200
		249,600			233,900
Deferred tax liability:
Depreciation of property and amortization of goodwill		(43,400	)		(40,400	)
Net deferred tax assets	$	206,200		$	193,500

The breakdown between current and long-term deferred tax assets and liabilities is as follows:

		2012			2011
Current deferred tax assets	$	70,200		$	77,700
Long-term deferred tax assets		179,400			156,200
Long-term deferred tax liabilities		(43,400	)		(40,400	)
Net long-term deferred tax asset		136,000			115,800
Net deferred tax assets	$	206,200		$	193,500

ASC No. 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC No. 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. As of June 30, 2012 and 2011, the Company did not have any unrecognized tax benefits related to various federal and state income tax matters.

The Company’s policy is to recognize interest and penalties on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits. The Company is subject to U.S. federal income tax, as well as various state jurisdictions. The Company is currently open to audit under the statute of limitations by the federal and state jurisdictions for the years ending June 30, 2009 through 2011. The Company does not anticipate any material amount of unrecognized tax benefits within the next 12 months.