Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

The components of income (loss) before income taxes and equity in earnings of equity-method investees were as follows:

The provision (benefit) for income taxes consisted of the following:

The reconciliation of the U.S. federal statutory rate to our effective rate on income before provision for income taxes was as follows:



	Fiscal Year Ended June 30,
	2017			%			2016				%		2015			%
Expected United States federal income tax at statutory rate	$	31,200		35.0	%		$	41,443			35.0	%	$	74,504		35.0	%
State income taxes, net of federal benefit	3,034			3.4	%		5,447				4.6	%	4,795			2.2	%
Domestic manufacturing deduction	(1,691		)	(1.9	)%		(1,233		)		(1.0	)%	(1,210		)	(0.6	)%
Foreign income at different rates	(6,539		)	(7.3	)%		(4,051		)		(3.4	)%	(9,515		)	(4.5	)%
Impairment of goodwill and intangibles	—			—	%	—	23,172			—	19.6	%	—			—	%
Change in valuation allowance	(60		)	(0.1	)%		5,067				4.3	%	963			0.5	%
Corporate tax reorganization	—			—	%		(4,173		)		(3.5	)%	(20,670		)	(9.7	)%
Unrealized foreign exchange losses	807			0.9	%		7,056				6.0	%	—			—	%
Change in reserves for uncertain tax positions	(4,417		)	(5.0	)%		1,448				1.2	%	(635		)	(0.3	)%
Non-taxable gains on acquisition of pre-existing ownership interests in HPPC and Empire	—			—	%		—				—	%	(2,793		)	(1.3	)%
Reduction of deferred tax liabilities resulting from change in United Kingdom tax rate	(1,841		)	(2.1	)%		(4,942		)		(4.2	)%	—			—	%
Other	1,349			1.6	%		1,698				1.3	%	3,096			1.5	%
Provision for income taxes	$	21,842		24.5	%		$	70,932			59.9	%	$	48,535		22.8	%

Deferred tax assets and liabilities consisted of the following:



	June 30, 2017			June 30, 2016
Noncurrent deferred tax assets/(liabilities):
Basis difference on inventory	$	10,933		$	11,232
Reserves not currently deductible	23,757			17,652
Basis difference on intangible assets	(145,558		)	(145,673		)
Basis difference on property and equipment	(20,137		)	(25,933		)
Other comprehensive income	(768		)	(4,623		)
Net operating loss and tax credit carryforwards	22,197			25,340
Stock based compensation	3,996			4,632
Other	(616		)	1,176
Valuation allowances	(14,850		)	(15,310		)
Noncurrent deferred tax liabilities, net	(121,046		)	(131,507		)

Total net deferred tax liabilities	$	(121,046	)	$	(131,507	)


(1)	The June 30, 2017 balance sheet includes $429 of non-current deferred tax assets in Other Assets.

The changes in valuation allowances against deferred income tax assets were as follows:



	Fiscal Year Ended June 30,
	2017			2016
Balance at beginning of year	$	15,310		$	10,926
Additions charged to income tax expense	1,862			7,484
Reductions credited to income tax expense	(1,922		)	(2,417		)
Currency translation adjustments	(400		)	(683		)
Balance at end of year	$	14,850		$	15,310

Unrecognized tax benefits activity, including interest and penalties, is summarized below:



	Fiscal Year Ended June 30,
	2017			2016			2015
Balance at beginning of year	$	16,019		$	10,759		$	11,058
Additions based on tax positions related to the current year	217			4,276			1,089
Additions based on tax positions related to prior years	—			1,404			202
Reductions due to lapse in statute of limitations and settlements	(4,634		)	(420		)	(1,590		)
Balance at end of year	$	11,602		$	16,019		$	10,759