12. Income Taxes

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

12. Income Taxes

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

	2014					2013
		Amount		% of Pre-tax Income			Amount		% of Pre-tax Income
Computed “expected” income tax (benefit)	$	(37,500	)	(35.0	%)	$	182,300		35.0	%
Research and development credits		(1,600	)	(1.5	)		(30,700	)	(5.9	)
Other, net		7,400		6.9			(27,200	)	(5.2	)
Income tax expense (benefit)	$	(31,700	)	(29.6	%)	$	124,400		23.9	%

Deferred tax assets and liabilities consist of the following:

		2014		2013
Deferred tax assets:
Amortization of intangible assets	$	153,300	$	146,100
Various accruals		75,100		49,600
Other		48,100		53,400
		276,500		249,100

Deferred tax liability:
Depreciation of property and amortization of goodwill		(44,300	)		(56,300	)
Net deferred tax assets	$	232,200		$	192,800

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

		2014			2013
Current deferred tax assets	$	86,000		$	86,600
Long-term deferred tax assets		190,500			162,500
Long-term deferred tax liabilities		(44,300	)		(56,300	)
Net long-term deferred tax assets		146,200			106,200
Net deferred tax assets	$	232,200		$	192,800

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, 2014 and 2013, 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, 2011 through 2013. The Company does not anticipate any material amount of unrecognized tax benefits within the next 12 months.